Happy New Year!
We are now in the New Year of 2025!
2025 Market Knowledge & Predictions
1) Sales of existing homes will grow moderately. Buyers will become accustomed to higher prices and the higher mortgage rates. If the mortgage rates decline, transactions will rise.
2) New policies on real estate commissions and home listings on MLS have changed as there are no commissions listed on Multiple Listing System (MLS). More documents are necessary for a real estate transaction to occur.
3) Newly built homes will continue to fill in the supply gaps created by the lack of existing home inventory, especially by home builders who can buy down mortgage rates.
4) Mortgage rates will range from about 6% to 7%.
5) With the new Trump Presidential Administration arriving January 20, 2025 the impending potential impact of tariffs and the deportation of millions of undocumented immigrants, may affect the economy.
A new year, with condominium laws. We ring in Januarys’ 2025’s New Year with a 2023 condominium law that created a future deadline for residential condominium sales contracts entered after December 31, 2024.
Starting on January 1, 2025, real estate contracts for the sale of a condominium will require statements for the Milestone Inspection (Milestone), Turnover Inspection Report (Turnover), and Structural Integrity Reserve Study (SIRS).
If the Association is required to complete the Milestone, Turnover, and SIRS on or after July 1, 2023, and the Association has not completed them.
1. If the Association is not required to complete the Milestone, Turnover, and SIRS; or
2. If the Association is required to complete the Milestone, Turnover and SIRS on or after July 1, 2023, and the Association has completed them.
The law also states that a contract for the sale and purchase of a condo that does not meet these new requirements is VOIDABLE at the option of the buyer prior to closing.
*It is important for a seller to call their management company and provide accurate answers to the buyer about these 3 new documents, so the buyer does not exercise their potential right to terminate the contract.*
1) A Milestone Inspection - is a structural inspection of a building performed by a licensed architect or engineer who will check for the condition of its load-bearing elements (the beams, columns, walls, braces, trusses) and other structural components. The purpose of these inspections is to ensure the safety of residents by identifying any structural issues that may require maintenance, repairs, or replacement. A milestone inspection is required for condominium buildings 3 stories or more in height that are at least 30 years of age.
Buildings that reached 30 Years of Age before July 1, 2022: The initial inspection must be completed by December 31, 2024.
Buildings that reached 30 Years of Age on or after July 1, 2022: The initial inspection must be completed by December 31, 2025.
2) Turnover Inspection Report - A turnover inspection is a visual inspection of a building's systems and common elements, such as the roof, plumbing, electrical systems, and elevators. A licensed professional engineer or registered architect prepares a report that identifies maintenance needs, useful life, and replacement costs. This report is required for buildings that are three stories or higher in Florida for buildings at least 30 years in age.
3) Structural Integrity Reserve Study - a mandatory evaluation in Florida that condominium associations with buildings 3 stories or higher must undergo every 10 years from the building’s creation. The Structural Integrity Reserve Study assesses the condition of key structural elements and calculating the necessary reserve funds to cover future major repairs or replacements of those components, as mandated by state law (Senate Bill 4D) to ensure the long-term structural integrity of the building; this study typically includes a visual inspection by a qualified professional like an engineer or architect, identifying elements like roofs, load-bearing walls, foundations, and fire protection systems, and estimating their remaining useful life and replacement costs.
You may have noticed the condominium association fees rising and The Reserve funds not containing enough funds for a low down payment. These inspections and reports are concerning. The Surfside FL Building collapsed, Champlain Towers South fell to the ground in June 2021 killing 98 people
