Single-Family Market
The Florida real estate market is reflecting some divergent pricing as it goes for single-family homes versus the condo market. According to Redfin, the single-family home market grew by 9% year-over-year as well as the number of new listings increased by 13% year-over-year. The price of single-family homes also increased according to Redfin by double digits from the prior year period.
The Condo Market
Even though in the Jacksonville metro area condo prices declined by only 7% year-over-year, the actual number of transactions fell by 27% and the number of new listings increased by 32%. According to Redfin, the same percentages were similar in Miami as well with condo prices falling 3% year-over-year, but the number of sales dropped 9%.
The price of homeownership is rising all over the country: not just because of high interest rates and inventory shortages, but also due to high real estate taxes and now, in the case of Florida, increased cost for homeowner insurance.
Florida condo sales have slowed down in one part due to the cost of condos has risen over the last year, but now other factors have entered into the pricing scenario: high interest rates; increased homeowner insurance, which has increased by approximately 40% from 2023; and the increase in homeowner association fees, HOA fees. All of which have taken a toll upon the Florida real estate market.
In one case HOA expenses in Orlando have increased from $400 a month to $700 a month. That’s almost like increasing taxes by 70%, translating into HOA fees of $8,400 a year rather than $4,800 a year.
Another factor that hangs over everyone’s consideration was the condo collapse of Surfside back in 2021. Many homeowner associations are collecting more money for maintenance and repairs these days in light of that event. So now condos in general sit longer on the market than had been the case a year ago.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
Connect with Ralph on LinkedIn: https://www.linkedin.com/in/ralphaponte/