Surging And Spiraling Statewide

South Florida Sales Improve; Central Florida Prices Tank 

The Miami Herald headline trumpets nine straight months of improving home and condo sales in Miami-Dade and Broward, while the Orlando Sentinel declares Central Florida "Existing-Home Sales Continue Rising." The other common denominator uniting these three markets is less cause for celebration for existing homeowners: prices keep falling with no bottom in sight. The Miami Herald describes the "super bargain" scenario: "The median condo price in Miami-Dade fell to $133,500 from $275,000 last year. In Broward, the median price fell to $79,900 from $150,000." And in Central Florida, median condo prices could soon be down 80% from the record highs of 2006. According to the Sentinel, "The median condo price in Metro Orlando was $52,700 last month -- less than half the statewide median of $106,900. " If he wants to assuage the fears of existing homeowners, the president of the Central Florida Real Estate Council maybe needs to tweak his talking points: "I think it's not going to plummet a lot further."

New Florida Maps Chart Misery, Losses

Focus Turns to Foreclosures, Economic Stress, Madoff Victims

There was a time when Florida maps were useful navigation tools for residents of and visitors to the Sunshine State. With the rapid population growth in decades past, cartographers often had a hard time keeping up with all of the expanding highways, new housing developments and tourist attractions. With the advent of Google maps and interactive mash-ups, today's Florida map tells a more sobering side of life in the HousingBath. The Sun-Sentinel publishes a colorful breakdown by zip code of foreclosures and subprime loans throughout Palm Beach and Broward Counties. The AP also has a new national map that aggregates unemployment, foreclosure and bankruptcy data by county. According to the Economic Stress Index, life in Florida is currently most stressful in Lee, Flagler and St. Lucie Counties. And perhaps the most original visual barometer of lost fortunes is the new MadoffMap which charts victims of Bernie Madoff's $65 billion Ponzi scheme. Along with New York and California, Florida has one of the highest densities of Madoff victims; many of them located around Jupiter, Palm Beach and Boca Raton.

Florida HOA's Take Desperate Measures

Car Washes, Bake Sales & Public Humilation Are All On The Table

The St. Pete Times' Marlene Sokol says many condo associations in the Tampa Bay area are "dying" and resorting to desperate measures as payments from members fall to 50% of normal collections. One association attorney, Robert Tankel, puts it this way, "I haven't seen bake sales yet or car washes, but I have suggested that people who don't pay need to consider doing that. Sell their flat-screen TVs." Another drastic alternative, public humiliation, is being kicked around at some local association meetings. Posting or circulating letters to all HOA members with the names of delinquent members is increasingly embraced as a last resort. Knocking on doors and face-to-face confrontations are less common because, as Tankel eloquently puts it, "You never know when you are going to meet Mister Doberman, or Mister 9-millimeter."

Condos "Spiraling Down" In South Florida

Median Prices Keep Falling, Lending Standards Keep Rising

Believe it or not, Paul Owers of the Sun-Sentinel says there are some interested condo buyers in Broward and Palm Beach Counties where median prices have tumbled below $100,000. But even those contemplating a new purchase are described as "determined not to inherit (the) headaches" of "thousands of empty condos" where "condo boards are raising fees and imposing special charges on the owners who remain." Compounding matters is the fact that Fannie Mae continues to raise the bar for potential buyers with prerequisites like new buildings needing to be 70% pre-sold (up from 51%) before financing is even an option. Examples of 50-70% price reductions include The Whitney in West Palm Beach and The Plaza at Oceanside in Pompano Beach. The high-end units at The Whitney sold in the $600k range a few years ago, but a penthouse unit is currently listed at $301,940. And Owers says units in The Plaza "are listed for sale for about $400,000, less than half of the $900,000 or more they were selling for a few years ago." A local realtor is quoted in the article steering her client away from The Plaza, "afraid that her client would make a deal she'd later regret." 

Add "Empty Condos" to Your MyFaves

New T-Mobile Ad Showcases Empty South Florida Condo 

The NBA Playoffs, the longest post-season event in the history of professional sports, are in full swing with 500 games being broadcast over the next three months. And even though the Miami Heat were eliminated during the seventh or eighth round, we can still watch local hero Dwyane Wade pimping T-Mobile's MyFaves every five minutes during the commercial breaks. My personal favorite is the one where Wade and Charles Barkley are playing NBA 2K9 while Wade is talking to Orlando Magic star Dwight Howard. Look closely and you'll see Howard standing on the empty balcony of a luxury high-rise with lots of other empty units and balconies. Welcome to WCI's One Bal Harbour. Empty or near-empty South Florida condos free of encumbrances like furniture, residents and annoying guests make the perfect background for TV commercials. And with tiny condo-hotel units still priced around $1,220 per square foot, OBH should be a good location for future ad campaigns in the foreseeable future.