For a while there I thought we would have one more headache to worry about in addition to insurance rates and hurricanes. On March 11, Florida legislators failed to reach an agreement on a bill to improve building structures. So, one less headache but far less oversight.
Therefore, let’s take a quick review of what is going on. Because of the Champlain Towers South collapse on the east coast, everyone woke up to the possibility of older condos, especially those on or adjacent to barrier islands, being in jeopardy. Florida lawmakers attempted to pass legislation that would require specific inspections for condo buildings. However, at the end of the legislative session, they were not able to come to an agreement. Some of the legislators cited hardships on condo owners and associations who are not in a financial position to bear the brunt of the inspection results.
These discussions have been going on for a while and about a month ago the Florida House passed a bill outlining measures to help alleviate the possibility of older condo buildings being neglected. It was passed in the Florida Senate to little avail since they closed the session without any agreement between the two houses. This came as a surprise since most of the legislators and the governor expected something to come out of the negotiations.
The House bill stated that condo buildings that are three stories or taller need to be inspected and recertified at 30 years of age. In addition, those that are within 3 miles of the coast would require recertification at 25 years of age. After that, recertification would be required every 10 years. The Senate bill was similar, changing the benchmark to 20 years for buildings near the coast and inspections every seven years thereafter.
I wouldn’t get too excited about the end of this legislation. First of all, it could easily come back in the next legislative session. In addition, it’s possible that insurance companies and financial institutions may now impose reserve requirements on buildings, stepping in where the state official has been absent.
In spite of what happens or does not happen in Tallahassee, Manatee County’s real estate is still rolling along. These are the February sales statistics published by the Realtor Association of Sarasota and Manatee.
Single-family homes closed 4.3% more homes in February this year compared to last February. The median selling price was $478,000, up 25.8% above last February and almost the same as January of this year. The average sale price was $693,229, up 25.3% from last February. The median time for properties to get into contract is six days of being listed.
Condos closed 16.8% fewer units in February compared to last February. The median sales price was $325,000, up 41.3% compared to last February, and the average sale price was $371,367, up 36.1% from last year. The median time for properties to get into contract is five days of being listed.
The primary problem our market faces is low inventory which is resulting in fewer closed sales. With mortgage rates going up, that will put more pressure on the market from buyers looking to purchase before they go up even further. According to the Realtor Association of Sarasota and Manatee, the imbalance of supply and demand contributes to the rapidly increasing prices.
This is Florida, and for all our success in attracting new residents and having improving housing prices, we still have everything related to living on the water to contend with. I predict this isn’t the end of condo recertifications and a review of condo reserves.
More Castles in the Sand
Surfside: More collateral damage
When will the real estate market return to normal?
