Hurricanes 2004-5 created market shortage, helped inflate prices.
Insurance doubled and tripled for primary residences
Second homes, non owner occupied homes became almost uninsurable for a while...and it being uninsured or uninsurable makes it almost impossible to sell
Increased prices meant taxes increased and insurance increased
So....when the monthly payment goes up by hundreds and when it becomes impossible or rent the property...it can become impossible to maintain property in Florida.
Florida is the poster child for the service economy. That’s why I got the hell out of that state after getting my degree from UF.
In my neighborhood there are two examples, from a development constructed in 2006.
One, a single family home purchased for $700,800 in February 2007 is available for a short sale price of $310,000 from the successor to HomeBanc - who issued mortgages of $570K as a 1st and $70K as a 2nd. The buyer, and investor from AZ who has rented the house out since purchasing it - put $60K down at the time of purchase.
The second, same development, a 3 story townhouse completed in late ‘06, purchased in February 2007 for $457K, is on the market now for $200K, after a foreclosure was filed in October 2008 and an order for sale issued in mid-December. No one bought at the auction and it knocked back to the bank. In the foreclosure claim you can see a first for $350K a Second for $53k and a home equity line of credit for $68K.
And that’s just what I am aware of within a dog walk from my home.