Florida condo owners are trapped in a rut as prices fall and rising insurance rates and condo fees deter potential purchasers. According to Bay Area realtors, this has resulted in more condos remaining on the market longer than single-family homes.
Condo owners in the Sunshine State are attempting to sell units as insurance and maintenance expenses, such as a HOA, make it too expensive. It has resulted in a 30% increase in condo listings on the market in Florida compared to the same period last year.
“What you’re seeing here is that flood insurance prices have had a significant impact not only on single-family homes but also on condominiums, particularly those near the water. “And as these insurance policies have increased, HOA payments have skyrocketed,” said Mark Middleton of Silver Trident Realty. “It’s apparent that condos are remaining on the market longer. And some of those prices are far cheaper than they were a year ago.”
The threat of flooding and bad weather has disrupted the homeowner market. Condo sales have suffered since single-family homes are always necessary.
Condo sales in the Bay Area have fallen 18% year on year. While many condo owners report that insurance and HOA expenses have increased in recent years.
“We have high-interest rates, high insurance or condo fees, as the insurance is bundled in, and high prices,” said Cyndee Haydon of Future Home Realty. “Interest rates are across the United States, and insurance is across Florida. But the condo catch-up aspect is somewhat unique in comparison to the rest of the world that we are dealing with.”
According to RedFin, homeowners insurance in Florida costs three times the national average and is rising with no end in sight.
Following the Surfside incident in South Florida in 2021, in which a 12-story building collapsed, condo owners’ laws and restrictions altered as well.
Owners are now also required to pay extra fees for construction assessments and safety procedures.