The Daily Soak - June 24

HousingBath Prompts Florida Shift in Drilling Sentiment

As a supplement to this week's HB.com survey regarding offshore drilling, the Wall Street Journal examines the shifting sentiment among Floridians facing "skyrocketing home insurance, the housing bust and funding cuts, forced by state budget deficits, to schools and other services." A Rasmussen poll taken last week found that 61% of Floridians believe that increased drilling would lower gas prices. Just two years ago, when gas prices were around $3 a gallon, a St. Pete Times poll found state residents were split 50/50 on the issue. If $4 a gallon has prompted an 11% swing to the Drill Now camp, just wait until we hit $5 statewide. According to GasBuddy.com, Floridians in some parts of the state are already paying $4.69.
, DealsGoneBad, Excess Inventory, Florida economy, Florida HOAs, Lawsuits, Palm Beach Post, Riviera Beach, Tampa, Wall Street Journal

Ruling Makes It Harder for Buyers to Avoid the Closing Table

A recent decision by the 4th District Court of Appeals in Palm Beach County was bad news for pre-construction purchasers in Florida looking for any possible loophole to renege on their contracts. The ruling was in response to a lawsuit filed by two investors who bought a Marina Grande condo in Riviera Beach for $495,000 in 2005. When the HOA fees jumped 36% in 2006, the investors sued for the refund of their $99,000 deposit citing a "material and adverse" change. But the judge based his decision on an affordability test meaning, since the investors could afford the increase, it was not a material and adverse change. Another area developer, Catafulmo Construction, faces similar challenges with their 2700 North Ocean project on Singer Island. According to sources, 40 of the building 242 units are currently tied up in some form of buyers' remorse litigation.


Are Downtown Revitalization Efforts Stalling in Tampa?

HB.com reported last week on the downtown Miami situation, but BusinessWeek expands the focus to other parts of area, specifically downtown Tampa. 11,000 new condo units were announced for the downtown area in 2003; however, only 3,500 units are under construction or completed today. Just like downtown Miami, several projects were scrapped when the market changed course, and a high percentage of finished units sit vacant. Completed projects like SkyPoint are pushing price reductions on their websites, while 13 real estate companies in Tampa just hosted a six-hour Open House this weekend featuring 9 developments with more than 1,300 available units. Here is the full BW slideshow of Downtowns in the Downturn.