The market has always cycled here in Southwest Florida. I have been here since 86 in commercial real estate and I have been through 3 full cycles and we are near the top of my forth. Near the top of every cycle I heard experts say this time was different and there will be no correction. Every cycle was different and the correction occurred for different reasons, at slightly different time spans and to different degrees. But there was always a cycle.
One thing they all had in common was that money to buy got harder to borrow. Once the banks tighten up the market stalls , inventory increases and prices correct. Older cash buyers with paid off or tons of equity in homes or properties depend on younger buyers with less equity to be able to borrow to buy.
People that can move are selling in high priced areas and moving to areas that they can get a nice home for less. A lady I date is in residential real estate. At her New Years eve party I met a gentleman who recently sold his smallish ranch style house in a so so location in California for $2.2 mil.
He bought a $2.1 mil beautiful house here on the water in an upscale area that is three times the size of the Cali house. He latched on to me as he quickly identified me as a fellow conservative.
I cant speak to what happens in other areas.
Most folks can't afford to pay the $62,000 in yearly taxes and insurance on his new to him house. Add in maintenance, power and water he probably pays north of $100,000 yearly for the privilege of living on the water in Florida. I don't know how people can afford to pay the taxes and mortgage on new property purchases in Florida.
