Hi All,
I’m looking into doing short sales in Central Florida.
During this time of huge increases in HO insurance and following enormous growth and subsequent slowing or receding values as well as increase of inventories. What are lenders thinking? Should we be concerned about a bottom , are the lenders? Any thoughts from a Florida investor would be appreciated.
JC 8)
Foreclosures are rising here in central florida. Talking to other investors leads me to beliveve that short sales are increasing as well. We wont be seeing the bottom for a very long time.
steve
The increase in insurance rates has really kicked a bunch of people here in the pocket. Further, for DTI purposes, higher insurance rates hurt sale values, because people can not qualify for many of the proposed payments…
An increase in insurance rates of 1200/yr is the equivalent of about 25K in sales value. Same monthly carrying cost in the end.
Lending guidelines have relaxed slightly over the past few months, but living here in St. Pete, I really don’t see the influx of higher paying professional type jobs to maintain a market where PITI payments can be as high as 2000-2500 (especially if you add Flood &/or Wind Insurance).
With all the new supply on the market and available space to build, it presents a potential tenuous longterm outlook… When the more mature/in-fill locations begin to turn around… hopefully the rest will follow.