Latest news with #FloridaCondos
Daily Mail
24-06-2025
- Business
- Daily Mail
Condo owners wake up to reality that homes are worthless
Florida's condo market has become a nightmare for many residents trying to sell. The Sunshine State's retirees who flocked there for affordable condos now find themselves stuck with old properties worth virtually nothing that they are desperate to escape . Pending mandatory repairs and rising HOA fees on aging towers have driven owners to list in a flooded market. In Boynton Beach for example, a two-bedroom, two-bathroom condo at Hunters Run Country Club with access to a resort-style pool and high-end amenities is selling for just $10,000. The owner paid $60,000 for it in 2001. It's now worth $3 per square-foot. On Marco Island, a one-bedroom, two-bathroom condo complete with water access at Sunrise Bay Resort is listed for $9,000. In contrast, a newer build nearby on Marco Island with an oceanfront entrance is selling for $629,000. But the rock bottom prices still won't move inventory. Buyers aren't biting. Instead, most are opting for newer builds, which come with modern storm protections, amenities and HOA fees that won't skyrocket any time soon. The dramatic shift comes after a new Florida law — passed in response to the deadly 2021 Surfside collapse that killed 98 people — imposed strict inspection and funding requirements for aging buildings. Condo associations must now conduct structural safety assessments and collect hefty reserve funds for future repairs. 'I think we are going to see a growing divide,' attorney Alessandra Stivelman of Eisinger Law tells 'New condos built to modern codes and with fully compliant reserves will thrive — while older buildings may struggle to survive and face termination, bulk sales, or redevelopment.' Now, owners are trying to dump their condos. The problem is, no one wants them. The State of Florida Property Management Association (SFPMA) reports that at Miami's Cricket Club, a 50‑year‑old tower, each of the 217 owners were hit with an extra $134,000 in assessments. Summit Towers in Hollywood, Florida, faced a $56 million assessment, or $99,000 for each of the 567 condos, which completely tanked the value of the building. Condos built over 30 years ago have seen a staggering 22 percent drop in value over the past four years, reports SFPMA. Meanwhile, new units have climbed in value 12 percent in just two years. Mortgage insurer Fannie Mae has now blacklisted more than 1,400 Florida condos due to deferred repairs or insurance lapses, which halts any attempt at a sale. Hard‑hit condo dwellers on fixed incomes and retirees see no way out. 'That's the million-dollar question – what will happen next and when,' Stivelman says. 'While this cycle of new and replacement buildings may help improve the safety and durability of Florida's condo inventory, it also raises concerns about displacement, affordability, and access for long-time residents. 'Many may not be able to absorb escalating costs or compete in a market shifting toward luxury redevelopment.' Despite the crisis, Governor DeSantis has acknowledged the 'serious problem' in the condo market, but offers no immediate bailout. DeSantis did sign a new law that kicks in July 1, that will rein in homeowners associations (HOAs) long accused of slapping residents with surprise fees and fines for petty infractions. DeSantis signed HB 1203 into law earlier this month, ushering in sweeping reforms aimed at making HOA boards more transparent and less intrusive. Under the new rules, any HOA with more than 100 homes or condos must post key documents — including budgets, covenants, and bylaws — on a publicly accessible website by January 1. Board members and property managers will also have to complete 4 to 8 hours of state-approved education each year. And homeowners must now get at least 14 days' notice, along with an agenda, before any board meeting. The changes are being welcomed by property owners who say they've been blindsided with arbitrary violations and ballooning fees with little warning or recourse. And this could be just the beginning of nitpicky HOAs. Lawmakers have signaled more limits may be on the way, in Florida and other states. But it's not enough for many retirees. As the crisis continues in Florida, the state may lose them as they didn't anticipate repair bills, high insurance rates and sagging condo values that are squeezing seniors out. More frequent natural disasters such as hurricanes and flooding have also led to more repairs and mitigation needs. As a result, the number of condos on the market has soared, and a 'mass exodus' is expected. There were 20,293 condo listings in the Palm Beach, Broward and Miami-Dade counties in the second quarter of 2024, ISG World reports. The figure is an 143 percent leap from the 8,353 in the same period 2023. Almost 90 percent of those for sale are in buildings more than 30 years old.
Daily Mail
24-06-2025
- Business
- Daily Mail
Florida condo shock as law change wipes out home values
Florida 's condo market has become a nightmare for many residents trying to sell. The Sunshine State's retirees who flocked there for affordable condos now find themselves stuck with old properties worth virtually nothing and are desperate to escape. Pending mandatory repairs and rising HOA fees on aging towers have driven owners to list in a flooded market. But buyers aren't biting. Instead, most are opting for newer builds, which come with modern storm protections, amenities and HOA fees that won't skyrocket any time soon. The dramatic shift comes after a new Florida law — passed in response to the deadly 2021 Surfside collapse — imposed strict inspection and funding requirements for aging buildings. Condo associations must now conduct structural safety assessments and collect hefty reserve funds for future repairs. 'I think we are going to see a growing divide,' attorney Alessandra Stivelman of Eisinger Law tells 'New condos built to modern codes and with fully compliant reserves will thrive — while older buildings may struggle to survive and face termination, bulk sales, or redevelopment.' Now, owners are trying to dump their condos. The problem is, no one wants them. The State of Florida Property Management Association (SFPMA) reports that at Miami's Cricket Club, a 50‑year‑old tower, owners were hit with an extra $134,000 in assessments. Summit Towers in Hollywood, FL, faced a $56 million assessment, completely taking the value of the building and its condos. Condos built over 30 years ago have seen a staggering 22 percent drop in value over the last 4 years, reports SFPMA. Meanwhile, new units have climbed in value 12 percent over the same 2 years. Fannie Mae has now blacklisted more than 1,400 Florida condos due to deferred repairs or insurance lapses, which halts any attempt at a sale. Hard‑hit condo dwellers on fixed incomes and retirees see no way out. 'That's the million-dollar question – what will happen next and when,' Stivelman says. 'While this cycle of new and replacement buildings may help improve the safety and durability of Florida's condo inventory, it also raises concerns about displacement, affordability, and access for long-time residents. 'Many may not be able to absorb escalating costs or compete in a market shifting toward luxury redevelopment.' Despite the crisis, Governor DeSantis has acknowledged the 'serious problem' in the condo market, but offers no immediate bailout. DeSantis did sign a new law that kicks in July 1, that will rein in homeowners associations (HOAs) long accused of slapping residents with surprise fees and fines for petty infractions. DeSantis signed HB 1203 into law earlier this month, ushering in sweeping reforms aimed at making HOA boards more transparent and less intrusive. Under the new rules, any HOA with more than 100 homes or condos must post key documents — including budgets, covenants, and bylaws — on a publicly accessible website by January 1. Board members and property managers will also have to complete 4 to 8 hours of state-approved education each year. And homeowners must now get at least 14 days' notice, along with an agenda, before any board meeting. The changes are being welcomed by property owners who say they've been blindsided with arbitrary violations and ballooning fees with little warning or recourse. Florida law now requires more transparency and financial responsibility from associations And this could be just the beginning of nitpicky HOAs. Lawmakers have signaled more limits may be on the way, in Florida and other states. But it's not enough for many retirees. As the crisis continues in Florida, the state may lose them as they didn't anticipate repair bills, high insurance rates and sagging condo values that are squeezing seniors out. More frequent natural disasters such as hurricanes and flooding have also led to more repairs and mitigation needs. As a result, the number of condos on the market has soared, and a 'mass exodus' is expected. There were 20,293 condo listings in the Palm Beach, Broward and Miami-Dade counties in the second quarter of 2024, ISG World reports. The figure is an 143 percent leap from the 8,353 in the same period 2023. Almost 90 percent of those for sale are in buildings more than 30 years old.
Daily Mail
18-06-2025
- Business
- Daily Mail
Florida's already fragile condo market faces devastating final blow
Florida 's already faltering condo market is about to get hit again — quite literally —with hurricane season headed the state's way. As hurricane season ramps up, forecasters are warning of an 'above normal' number of storms — threatening to push an already fragile sector to the brink. Condo communities across the Sunshine State are still reeling from skyrocketing HOA fees, steep maintenance costs, and tough new building laws passed in the wake of the Surfside collapse. Now, experts say a major storm could deliver a knockout punch. 'As a Florida resident, I certainly hope we are spared a direct hit this hurricane season,' Alessandra Stivelman, partner at Eisinger Law, told 'But from a legal and structural perspective, Florida condominiums are currently facing what I would describe as a perfect storm of vulnerability — both physical and financial.' 'After several relatively quiet hurricane seasons on the east coast, any significant storm now has the potential to inflict far more than just wind or water damage. 'It could expose and magnify deep-seated issues that have been building for years, including deferred maintenance, underfunded reserves, insurance gaps and a lack of readiness for new legal requirements.' Many of Florida's condos were built decades ago — long before modern hurricane codes. That means no storm-rated windows, no reinforced roofs, and poor waterproofing. But even newer buildings aren't necessarily safer. Some suffer from poor upkeep or are ill-equipped to handle storm surge and prolonged flooding. 'Condominiums, especially those located in coastal and flood-prone regions like Florida, are inherently vulnerable to hurricanes due to their high-density, multi-story construction and shared infrastructure,' Stivelman says. Heavy rains, even outside of hurricane season, can overwhelm existing infrastructure and lead to water seepage, flooding and mold—problems that are difficult and expensive to fix. Over 8 million homes in Florida are at risk of suffering moderate or greater risk of hurricane wind damage this year, while over 2 million are at risk of significant storm damage, says a new report by Cotality. The National Oceanic and Atmospheric Administration (NOAA) predicts a dangerous hurricane season, which officially began on June 1 and will continue until November 30. They project 13 to 19 heavy storms, 6 to 10 hurricanes and 3 to 5 major hurricanes. With predictions of up to 19 named storms and five major hurricanes, residents of the Sunshine State – many already paying the highest home insurance premiums in the nation – are petrified. Over the last five years, several major natural disaster insurance providers have pulled out of Florida entirely or have slashed their coverage options, citing unsustainable catastrophe exposure. While many homeowners have watched their premiums triple, NerdWallet reports the annual cost of home insurance in Florida is now $2,625, which is 24 percent above the national average. Champlain Towers was in the midst of its 40-year structural review when it collapsed without warning in the early morning hours of June 24, 2021, killing 98 people Florida's condo owners are facing even more challenges, many of them tied to sweeping legislation introduced in the aftermath of the tragic 2021 Surfside condo collapse. The new building safety law, which includes mandatory inspections and strict reserve funding rules, has had a major effect on HOAs and reserve funds. 'With the recent implementation of Florida's Milestone Inspection and Structural Integrity Reserve Study (SIRS) laws, associations are under immense pressure to fund repairs and reserves simultaneously,' Stivelman says. 'A hurricane event could trigger emergency structural assessments, accelerate statutory deadlines, and force boards to make immediate financial decisions, often without sufficient insurance proceeds or reserve funds in the bank.' Stivelman adds that In some cases, associations may find themselves unable to meet both the regulatory obligations and the financial burden of post-storm recovery. 'The impact is not just property damage; rather, it's about legal compliance, market stability, and the long-term viability of aging buildings across the state,' she says. Florida condominiums are undeniably more vulnerable today than in prior years, not solely due to physical aging or deterioration, but as a result of a complex convergence of financial, regulatory, and environmental pressures layered atop existing structural risks, according to Stivelman. 'Many of the state's condominium buildings include aging structures that are increasingly susceptible to significant damage under storms and post-storm conditions,' she says. The aftermath of Hurricane Helene in 2024 leaves buildings demolished 'Additionally, continued urban development without commensurate investment in stormwater infrastructure has increased the flood risk across the state—even in the absence of hurricanes.' With all of the problems at hand, many are choosing to sell—but the flood of listings has left the market oversaturated and buyer interest has been sluggish. There are a few things condo owners can do to prepare for hurricane season. First of all, condo owners should understand that living in a condominium means sharing financial responsibility for the upkeep of the entire building, not just their individual unit. A multi-residential housing model, and major repairs like roof replacements, structural work, or waterproofing must be planned and funded collectively. 'If you are an owner and you are not consistently contributing to reserves through your dues, then when a major repair is needed, the cost will come due all at once, whether through a special assessment, a personal loan/refinance, or even being forced to sell,' says Stivelman. 'Owners should expect these expenses and plan accordingly.' She adds that in addition, active participation in condominium meetings and staying informed are essential. Florida condominium owners may qualify for assistance through several state and local programs designed to ease the financial burden of storm-resilient upgrades 'Understanding the building's financial health, upcoming repair needs, and the legal obligations of both the owners and the association is critical,' Stivelman says. 'Florida law now requires more transparency and financial responsibility from associations, but it's up to the owners to remain engaged, ask questions, and hold boards accountable. 'Knowledge and involvement are key to avoiding unnecessary surprises and ensuring the long-term stability and value of your property.' Florida condominium owners may qualify for assistance through several state and local programs designed to ease the financial burden of storm-resilient upgrades and regulatory compliance. For instance, the My Safe Florida Home Program offers matching grants for improvements such as impact-resistant windows and doors, while Miami-Dade County's Condominium Special Assessment Program provides low-interest loans to eligible owner-occupants facing significant assessments related to building repairs and recertification.
Yahoo
13-06-2025
- Business
- Yahoo
Posthaste: Canadian snowbirds now have more reasons than Trump to dump that Florida condo
More Canadian snowbirds are putting their properties in Florida on the market, according to media reports, but unloading them might not be that easy — especially condos. Real estate in the Sunshine State boomed during the pandemic, but now the tables have turned and the condo market is in a serious slump, said Admir Kolaj, a Toronto Dominion economist, in a recent report. Condos play a big role in Florida real estate. There are about 1.5 million of them, accounting for 15 per cent of the state's housing stock, double the national share. Over the past three months, sales have dropped 13 per cent and are down more than 25 per cent from pre-pandemic levels. Prices have fallen about 8 per cent from their peak, said Kolaj. Inventories are climbing, with close to 80,000 condos and townhomes for sale, about 20,000 or 35 per cent more than a year ago. Headwinds buffeting the market include higher interest rates (mortgage rates in the U.S. are still close to 7 per cent), a steep drop-off in domestic migration and economic uncertainty brought on by Donald Trump's tariff war. But Florida condos face their own special set of problems. For one, the Sunshine State is the most expensive in America for homeowners insurance, with condo-specific premiums estimated at double the national average, said Kolaj. Homeowner association fees are also climbing under new stricter regulation on condo inspections and repairs. Buildings older than 30 years — more than half the condos in Florida — must undergo milestone inspections and condo associations have to foot the bill for repairs. Kolaj said in some reported cases where there was the need for major repairs special assessment fees ran into the thousands. 'Given all the headwinds that the condo sector faces, it is no wonder that many owners are choosing to list their units for sale, growing the glut in an already-flooded market,' he said. Canadians are among them. Florida has the largest share of foreign home buyers in America, accounting for 20 per cent of the national total. Twenty-seven per cent of those buyers are Canadian, the highest percentage save for Latin Americans. According to media reports, more of those Canadians are putting their properties on the market, spurred by a weaker dollar, stricter travel requirements and Trump's repeated comments about Canada as the 51st state. Realtors in Florida told CNN earlier this year they have seen a 'sharp uptick' in Canadians looking to sell their homes. 'Some of the clients I have been dealing with want to sell at any cost, even at a loss,' said Share Ross, a realtor based in southeast Florida. Gulf Coast News reported in April that Canadians were making a 'mass exodus' from Southwest Florida, after the U.S. required background checks and fingerprints if they planned to stay more than 30 days in the state. Reduced foreign interest is just one more thing on a long list of challenges facing Florida's condo market, said Kolaj. And owners may have to wait a while for a rebound. There are indications that the state will soften its law on older condos and if other conditions fall into place the condo market could find firmer footing by late 2026, he said. to get Posthaste delivered straight to your labour productivity is finally making gains. As today's chart from BMO Capital Markets shows productivity growth is on the rise and catching up to the growth rate of the United States, though that has been declining. Statistics Canada said last week that productivity grew 0.2 per cent in the first quarter of 2025. That's down from 1.2 per cent growth in fourth quarter of 2024, but it is the first time there have been consecutive quarterly increases since the start of the COVID-19 pandemic. 'The bad news is that productivity could take a hit in the coming quarters as economic growth is expected to slow meaningfully due to trade uncertainty,' said BMO senior economist Shelly Kaushik. Former prime ministers Jean Chretien, Joe Clark and other politicians and experts attend a summit in Calgary to discuss issues including peace and security, trade, energy security and critical minerals, artificial intelligence and quantum computing. Today's Data: United States Producer price index Earnings: Transat AT Inc., Adobe Inc. National Bank's $5 billion megadeal was decades in the making for Dominic Paradis Can Canada repair ties with China? How the two countries could end the tariffs war and expand trade Don't assume further rate cuts from the Bank of Canada, Poloz warns With the cost of homes on the rise, the typical first-time homebuyer in Canada looks different than in the past. The Financial Post takes a look at who is buying and what it takes for them to own their first home. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ Canada home prices are heading into correction territory Just when you thought Toronto's condo market couldn't get any worse …
