SW FL Real Estate

What does this mean?  Not nearly enough but it is a start... for the property owners of this state.

It only means - on avg. - about a $240 / yr. tax cut per property.  The biggest gain is the property tax portability issue for long time residents.  People with a lower property tax rate or base can now sell their home - buy another - more expensive home and keep their lower tax rate.  That will improve the market conditions to some extent.

Bottom line: this was step one.  The legislature has to take this issue up again and this year and create more tax savings to help this economy. 

Probably - with a lot of "buts" thrown in....

For example, Amendment 1 is likely to fail and that would hurt more.  If it passes it won't help appreciably but a failure would be harmful.  Amendment 1 is only the first step in an attempt to correct property tax issues in this state.  There is more to come.

Permits issued have dropped  back to 20-25 yr. ago levels and that is a good sign.  Prices dropped 25-30% in '07.  They will drop some more in '08.  With 1,500 foreclosure per month (Lee county only) there is tremendous downward pressure on the market.  The renowned FL economist that says it will be 10 yrs. to recovery is wrong as they usually are.  Most likely we won't see a complete turn around until 2010.  When I say that, I am referring to an price increases. 

Here is an unfortunate example of where we are in this market:  2 clients - 1 is upside down by $75k on a $290k investment and the other is upside down $100k on a $480k investment.  Both want out and can't stand to bleed out like that at once (don't have the cash to bring to closing).  Both would rather bleed out monthly and neither can qualify with their lender for foreclusure.  So, over time they will try to rent (which drives down rental prices because everyone is doing that and the market is flooded) - they will bleed out monthly and lose everything they have in the form of equity in other areas because they can't just "give it back to the lender".  That is our market.

Smart buyers are taking advantage of that - people that want to be here and buying - be it ever so slowly.