I guess anybody that reads the paper knows that the market here in NW Florida is down. And it is, about 30% down from a year or so ago. The question then is, when will it turn around? And that has as many answers as caterpillars have legs. Many say it'll take reform in the Insurance industry in the form of lower rates. Others say the high property taxes are to blame and turn around depends on lower tax bills. Still others say only when prices get back down to reality.
Here's a flash: all of the above have affected the market, and will have a bearing on recovery. At this point ( February 1st,) it looks like things are leveling off a bit in terms of pricing. My opinion is that prices have come down about as much as they're going to come down. inventory however remains high, very high.
And the politicos in Tallahassee are telling us they have answers to the Insurance problem. In fact the new Governor just signed a bill that is supposed to bring a roll-back of premium prices for Homeowners Policies. Hmmmmm, I am not too optimistic about that.
Those same politicos are saying the need to address the issue of out of control property tax bills. That is another issue. One that I will address in more detail in another post. For now, I don't see real relief (property tax) coming in the foreseeable future.
Bottom line, it's going to take a lot more than a month or two before we get back to buying and selling (residential) property on a "normal" basis. That is to say something other than the existing Buyers Market.
What do you think?
