Real estate key to issues throughout South Florida
Florida Real Estate
This week’s cover story profile of Mount Sinai Medical Center by John Dorschner is a reminder of how important real estate is to all of South Florida. The venerable institution has been hampered by a land purchase it made at the dawn of this decade.
While relief from that injury may come soon for Mount Sinai, the overall South Florida real estate market, especially residential, has no quick remedies.
This morning the Florida Association of Realtors will release July home sales and price data. The experts will either declare the industry’s recession is almost over — or we’ll get the sinking feeling that the muck and mire of soft numbers will continue.
One such expert already has the answer, and it provides no solace.
In his online forum, Mark Zandi, the chief economist at Moody’s Economy.com, prescribes no breath-holding for the light at the end of the tunnel. Commenting in the forum, Hugh from Pembroke Pines asks Zandi about the burdensome effects of taxes and insurance on home affordability and the answer cuts to the core of what’s ailing the market.
“It is the key reason why the Florida housing market will be one of the last to recover from the current downturn,” Zandi writes.
Is the solution to add more price controls to insurance companies? De-electing gridlocked legislators? Harpooning greedy speculators or criminal mortgage brokers? No, Zandi says. Look to the skies.
“It is not only the very high insurance and tax bills, but it is also the uncertainty with regard to how high they will be in the future. We are certainly reminded of this now as storms traverse the Atlantic and move up the peninsula.”
Yep, our fate is in Mother Nature’s hands. Fewer Fays, less worrisome Wilmas and the real estate market will prosper. So, God help us.
Tags: Florida, Miami, Miami Condos, Miami FL, Miami Real Estate, Real Estate, South Florida