They rewned me at 2538+$100 per car parking+water+gas+electric. If not for 0% income tax id be pissed.
In OC, $2500 1BD is in the ghetto areas.
Things have changed. Crashes and recessions play out vastly differently in disparate areas or regions of the country.
The fly-over state recession will be worse than the coastal one.
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Let’s make sure were comparing apples to apples here…1 bd $2500 / month in Nashville is a shiny new building, parking garage, gym, “lounge room” with a pool table, computer room, and the apt has central hvac, granite countertops, w/d in unit, and you can walk to the Whole Foods and get a Starbucks on your walk around the neighborhood.
@vinny I may be wrongly assuming this is the type place you live but just want to make sure were comparing the same thing.
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woah woah owah, do you know what building i live in lol
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Besides the gym, and lounge room mine have everything too. Granite countertops, hvac, everything is in a walkable distance, including the airport. Don’t have any majestic views though
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i do have a member of the Tennessee Titans on my floor, cool dude, drives a white range
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Florida condos have historically been some of the most volatile and terrible investments in all of real estate. Slowest to appreciate, first to plummet in value, and then there’s all of the headaches with mismanaged HOAs and skyrocketing fees, short-term rentals, etc. Unless you were lucky enough to scoop one up at the bottom of the last big crash, in which case at least you’ve made some equity back. But for folks buying now…yikes.
You’re wise to rent instead of buy.
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theres also a new condo building across the freeway from me, $1M for a 1 bed. You get sprawling views of the interstate and local Toyota Dealership. Theres a White castle too!
I can validate this anecdotally. The number of clients we had buy homes for their kids in the past two years was almost triple the previous 10 years. The PPP loans are going down in history as the greatest handout to the wealthy ever. Many people are getting their ERC this year as well.
In the markets where the majority of my client base is, there are low-density desirable areas (water bodies, close to city w/out crime, good public schools) that are still uber-competitive. We call them “Aspen’s”.
The one differentiator I have seen recently is that people are looking for completely finished or nearly finished homes. Homes requiring an extensive remodel or gut are sitting longer if they are overpriced.
Ultimately the primary home is a quality of life purchase vs. investment, 6% is a bitch compared to the last decade, but if it means no private school and a mini white utopia, folks are still paying.
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Miami took a hit in the last recession but it was probably the first to bounce back. When the international money sees its a good deal watch out because they come pouring in from all over. RE investments are long term. To see double digit returns in a normal economy you have to own a property 15-20 years. But these big swings can produce those returns in much less time. When the dust settles pick up what you can and ride it out. IF you can find double digit CAP Rates buy as many as you can.
I’ll also mention the surplus in condos in miami was exuberant in the mid 2000’s. That likely won’t happen this time around as land has ran out to build those massive buildings. And developers were slowing down a bit before the pandemic hit. I have a feeling there will be a much shorter period of finding good deals this time around in a city like Miami. You have to get in a little early and not wait too long once it bottoms out.
There is too many dynamics but unlike the previous crash, most of the financed homes are more solid than the ninja loans in the past.
One of the biggest variables is inventory and how will that increase markedly if people who bought houses at low rates will not want to move, people who bought houses at higher prices don’t want to lose equity, and people who want to downsize can’t because smaller homes cost more than the current one either by price or interest rates.
I don’t think we will see a crash (what is a crash definition? 10% down? 50% down?)… but I know that certain cities in SoCal or way too expensive for starter homes and even a 20% drop will still be overpriced.
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What’s up with LA, I swear just 6 months to a year ago everybody and they mama’s was moving to LA and now you don’t hear LA anymore
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Are you being for real…? 
I am, I legit haven’t heard LA anymore, unless I’m not paying attention
Out here in MA, it is an interesting market. Inventory is still low. Although I do not have numbers as far as whether home prices have dropped lately, a realtor (friend of a neighbor’s) who sells homes in wealthy Boston suburbs (Weston, Wellesley, Concord, etc) said a few months ago that there were quite a few cash buyers paying over asking.
I think a combination of good schools and the abundance of jobs in several industries such as Biotech, Healthcare, Tech, Finance, etc has sustained this crazy market in my state. Nice towns with good schools within 45 minutes of Boston were always out of reach for me. Average home prices were over $500k and most homes were older and needed some “upgrades”. After living north of Boston (about a 30 minute drive from the city) for nearly 8 years, my family and I decided to move to a town with a good school system, affordable homes and better quality of life.
When we moved out to Central MA, average home prices in my town were around $400k. We got lucky and were able to build a 2500sq ft home for less than $450k. Nearly 3 years later, 3+bed homes with 2000+ sq ft are selling in the $500k to $550k in my town. If I were to build my house today, it will cost me at least $600k. Zillow is saying it is worth between $550k to $585k. I am not looking to sell any time soon.
We will see what happens, but I am glad I am not in the market.
Same morons said that about Phoenix, Tampa, Sacramento, San Diego…the list is long.
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Mostly realtors, mortgage brokers and first time investors. Aka people with no experience or have financial gain to be made with a strong market…
Another difference in Miami is the wealthy south Americans don’t mind losing money on a condo. Any loss here is better then 100% loss through inflation or corrupt govt stealing it, basically the same thing. Think Argentina…
I’d rather lose potentially 50% of my money then keep it in Argentine pesos that’s for sure. Most other countries in South America aren’t much better. This is what happens when you elect socialists…
https://finance.yahoo.com/news/argentina-hike-interest-rates-75-200117136.html
There’s a lot of foreign money in US real estate. Some of it like you describe where it’s on the up and up, others via shady shell corporations. It’s a way to conceal capital or at least protect it and in some areas you have a lot of high end RE used for that.
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I was doing the same, but this year sold a big chunk, I was maybe 4-6 months late but still did well.
The residental cap rate in So Cal is like 3-4% so nothing great anyways.
I could be wrong, but this RE fluc maybe a golden opportunity for people with cash in hand.