Florida house prices now plunge as the insurance crisis worsens during a difficult market, sources are confirming.
The price of condos listed for sale in Florida continue their slide, as the state faces a worsening insurance crisis and sellers struggle with high homeowner association (HOA) fees, reports NewsWeek.
“The housing market in the Sunshine State is currently in a difficult situation. On one side, skyrocketing insurance costs are pushing owners to sell their condos; on the other, rising costs are discouraging buyers.”
According to the latest update by real estate platform Redfin, published in late February, sales of condos in Florida plummeted in January even as listings jumped and prices fell, proving how reluctant buyers are to invest in such properties.
While condo prices were up an average 8.4 percent year-on-year in the U.S. in January, some of Florida’s major metros saw a significant drop, with Miami reporting a 2.5 percent slump and Jacksonville a 6.5 percent decline, according to Redfin data.
And in Orlando, condo prices were down just 4.8 percent year-on-year.
As of early on Wednesday, there were 44,623 condos listed for sale on Zillow in Florida, out of a total of 204,248 properties for sale in the state.
Some 12,509 of these condos had a price reduction, a sign that sellers are willing to accept less than they think the property is worth if that means offloading it quickly, says NewsWeek.
“The current crisis in Florida’s condo market is due in part to the rising costs of keeping a condo in the state, including higher HOA fees, as well as skyrocketing home insurance premiums.”
HOAs are now required to regularly assess the safety of condo buildings and collect more money for maintenance and repairs if necessary.
According to the website Florida Realty Marketplace, average HOA fees typically range between $100 and $350 in Florida, though this cost may vary depending on maintenance requirements and community amenities.
Meanwhile, the state appears nowhere near finding a way out of the insurance crisis that has been unfolding for the past few years.
According to the Insurance Information Institute (Triple-I), Florida homeowners are paying the highest premiums in the country, an average of $6,000 in 2023.
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Also Read: A Massive Mall Retailer Is Now Closing in California
Other Economy News Today
This massive discount retailer is now closing 1,000 stores as inflation pressures the company to shutter several locations.
Dollar Tree Inc. plans to close a whopping 600 of its Family Dollar stores during the first half of the year, the company said Wednesday.
The retailer also intends to close an additional 370 Family Dollar stores and 30 Dollar Tree stores in the coming years as leases expire, CEO Rick Dreiling said during an earnings call.
Consolidated net sales for the fourth quarter rose 12% to $8.6 billion from $7.7 billion year over year.
Quarterly net sales at the company’s namesake banner rose 15% to nearly $5 billion, up from $4.3 billion a year earlier.
Family Dollar net sales rose 7% to $3.7 from $3.4 billion.
Overall, the company posted a net loss of $1.7 billion for Q4.
For the full year, consolidated net sales rose 8% to $30.6 billion from $28.3 billion a year earlier.
However, the company swung to a net loss of $998 million from a prior year profit of $1.62 billion.
Overall same-store sales increased 4.6%.
By banner, Dollar Tree’s comps rose nearly 6%, while Family Dollar’s comps grew 3.2%.
Dollar Tree said in November that it planned to review its Family Dollar portfolio and identify underperforming stores for closure, relocation, or re-bannering.
The Virginia-based company, which had 16,774 stores in the U.S. and Canada as of last month, publicly shared the outcome of its review for the first time Wednesday.
Dreiling said persistent inflation and reduced government benefits continue to pressure the lower-income consumers that comprise a sizeable portion of Family Dollar’s customer base.
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Also Read: A Massive Grocery Store Will Now Close All Locations
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