Is now the time to consider a condo in Florida?
If you own a condo in Florida or were thinking of buying one, you might be happy to hear about a financial relief bill signed into law by Republican Governor Ron Desantis yesterday.
The new law goes into effect July 1 and is aimed at reforming a condo safety law passed in 2022.
Condo owners in Florida faced rising costs under the 2022 law, which requires condo associations to have sufficient reserves to cover major repairs. Some residents were caught off guard by hefty fees levied to cover years of deferred maintenance expenses required to bring their buildings into compliance with the 2022 legislation.
The new measure allows certain condo associations to fund their reserves through a loan or line of credit. It also gives residents greater flexibility to pause payments into their reserve funds while they prioritize needed repairs and extends the deadline for associations to complete structural integrity studies. Some smaller buildings will be exempt from having to do those analyses.
The 2022 condo safety law affected the desirability and thus values of Florida condos.
May 2024 to May 2025:
- Condo prices down 12% – Sarasota and Manatee counties
- Condo prices down 10% – Pinellas county
- Condo prices down 5% – Hillsborough county
“Be fearful when others are greedy and be greedy when others are fearful.”
Warren Buffett
A lot of money was made by people who purchased in a buyer’s market and sold in a seller’s market. I went through MLS and found a handful of examples:
- 404 E Royal Flamingo, Sarasota | sold in 2012 for $680,000 | sold in 2020 for $1,235,000
- 1920 Webber St, Sarasota | sold in 2010 for $720,000 | sold in 2021 for $1,259,000
- 990 Blvd. of the Arts #501, Sarasota | sold in 2010 for $1,000,000 | sold in 2022 for $3,150,000
- 5175 Oxford Drive, Sarasota | sold in 2010 for $1,000,000 | sold in 2022 for $2,995,000
- 2550 Harbourside Dr. #341, Longboat Key | sold in 2010 for $1,075,000 | sold in 2023 for $2,150,000
- 811 The Espanade N #802, Venice | sold in 2010 for $995,000 | sold in 2018 for $1,550,000
- 535 Sanctuary Dr. #A402, Longboat Key | sold in 2010 for $1,250,000 | sold in 2021 for $1,700,000
From an investment standpoint and with a depressed condo market should we be looking for good condo investments right now?
Please contact us if we can help.
