#Fangate overshadows weirdest start of the FL. Gov. gubernatorial debate as the 900 pound invisible gorilla in South Florida seeks answers.
While the Florida real estate market is heating up in Florida and particularly South Florida, all eyes are also watching the 2014 Florida gubernatorial election between candidates Charlie Crist (D) and Rick Scott (R) -both parties openly discuss education, unemployment, immigration and the ever-promising $1 billion in tax cuts.
One thing for sure is; no one is speaking about the 900 pound invisible gorilla in this campaign which is the billions of real estate dollars that continue to be locked up from the housing issues dealing with zombie foreclosures.
For the first time since the Governors race began – the South Florida housing issue is finally being addressed; unfortunately, not by either Crist or Scott.
And, last night twitter followers started to go crazy posting viral remarks and making almost famous the hashtag from Hell, #fangate. Some examples
Local South Florida Foreclosure Issues
Local real estate and foreclosure defense attorney Roy Oppenheim (well regarded for opinions that seem to be a favorite amongst South Florida homeowners’ afflicted and/or inflicted by the “Too Big To Fail, Too Big to Jail” banking quagmire) poignantly asks the Fl. Gov. gubernatorial candidates Crist and Scott to address the untapped housing issues mostly involving Miami-Dade, Monroe, Broward, Palm Beach and West Palm Beach areas that could infuse the South Florida economy with billions in economic fuel.
South Florida’s Economy
And, as billions of dollars in untapped Florida resources continue to remain locked-up, one thing is for certain – the 900lb invisible gorilla will flare its’ nostrils until either Crist or Scott soothes the giant.
What is causing this market to remain untapped in precious resources?
Besides #Fangate overshadowing Florida’s key issues, this was the weirdest start of a gubernatorial debate that took place as the 900 pound invisible gorilla in South Florida is seeking answers.
Homes unsuccessfully foreclosed upon by the banks are causing a huge drag on the Florida real estate market. Homeowners cannot resell, transfer title, refinance, or purchase new homes because they are literally trapped.
Oppenheim has concerns regarding the “unlocked real estate resources that can’t be tapped.”
And, with good reason.
2014 Gubernatorial Fla. Elections
In order to move the Florida economy forward the gubernatorial candidates must address the housing issues still looming since the crisis.
Numerous businesses’ in Florida would receive a true boost, as would employment and the entire Florida economy, by a proper addressing of Florida’s housing issues. All areas of business statewide, specifically construction, banking, furniture, sales, insurance companies, real estate lawyers, title companies and surveyors – among others, are (and have been) eagerly awaiting for a candidate to emerge with a plan to triumph over the lingering effects of the crisis and drive Florida forward in 2015.
From The Trenches
founder and editor of the South Florida Law Blog
Real estate and foreclosure defense attorney Roy Oppenheim passionately defends Florida homeowners and investors from foreclosure, arranging short-sales, loan modifications, mortgage advice, commercial litigation, and business related matters. Roy is also the original creator of the South Florida Law Blog, named the best business and technology blog by the Sun-Sentinel. Share your comments and thoughts on the Oppenheim Laws digital media social networks; they’d love to hear from you. –
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Repeatedly I am asked what my thoughts are about the implications of the situation in Iraq as it relates to the U.S. economy and the real estate market. While I nor anyone has a crystal ball, I do believe that there are certain logical implications that we can extrapolate from the Iraq crisis.
Specifically, it appears with energy prices spiking that there will be an interruption in the supply of oil from Iraq for the foreseeable future. Of course, the oil companies will use any excuse to drive up the price of oil and thus it is logical to anticipate that we will see a spike in gasoline prices shortly.
When oil and gasoline prices rise, a number of things happen beyond the pump.
Those people who are on fixed incomes or have tight economic budgets begin to cut back on certain discretionary items. They may go out to eat less and/or they will make one less trip to the grocery store in order to save a little money. Thus, those real estate markets that are hypersensitive to any adjustment in disposable income such as 80 percent of the residential market will likely be the first markets to have an alteration in the pricing structure due to increased oil prices. Sustained increased prices at the gas pump are effectively a form of anti-inflation. In fact at times when the economy was heating up too much at the beginning of the millennium the government would want oil prices to go up in order to prevent the economy from overheating.
Now, of course, as we are not in a period of inflation anything that harms the economy can cause deflation in the economy. When money is syphoned out of the economy with increased oil prices, there is less money to spend on other items thus reducing demand in some circumstances.
Waging a war on high-end real estate
Of course, the high-end part of the real estate market will likely not be affected by any increase in oil prices because it is not as vulnerable to these small calibrations in the economy compared to the wealth that such individuals may possess. So if you are trying to read the tea leaves it is likely that we will see some changes in a downward or sideways movement as it relates to lower income and middle income housing and very little impact on the higher-end markets.
U.S. energy arena soars
So as the Middle East erupts; U.S. is on the alternative energy front. Naturally, of course, there is always a silver lining in these situations. We live in a global oil market so as oil prices increase the desire to pursue alternative energy whether it is wind, solar, natural gas or even fracking will increase. U.S. output in oil has soared because we’ve adopted new technologies at a fairly good clip since 2008. New technology is valuable to the U.S. economy in the sense that it will allow us to become even more independent of what goes on in the rest of the world.
Here’s the bottom line. We live in a world that runs on oil. War in the Middle-East puts that supply at risk which makes investments scarce. The local South Florida real estate market has weathered lots of storms. Stay tuned as we continue to watch the events halfway around the world affect our real estate market.
From the trenches,
Real estate and foreclosure defense attorney Roy Oppenheim passionately defends Florida homeowners and investors from foreclosure, arranging short-sales, loan modifications, mortgage advice, commercial litigation, and business related matters. Roy is also the original creator of the South Florida Law Blog, named the best business and technology blog by the Sun-Sentinel. Share your comments and thoughts on the Oppenheim Law digital media social networks; they’d love to hear from you.
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The following article was published in the Daily Business Review and written by Samantha Joseph for the DBR. The South Florida Law Blog has republished select exerpts with quotes from Roy Oppenheim, Oppenheim Law.
New Wave of Short Sales
A new wave of short sales could be part of the fallout from Florida’s Fair Foreclosure Act as property owners move to mitigate losses under the law that gives both new powers and new responsibilities to lenders, real estate brokers say.
The law took effect July 1, months after state lawmakers allotted millions of dollars to accelerate cases clogging court dockets.
South Florida has been a hotbed for distressed properties for years since the housing crash. Miami ranked among the top 10 metro areas in the country for foreclosures in 2013, according to Irvine, Calif.-based RealtyTrac. Broward County foreclosure filings rose 11 percent in 2013, while December’s count was 30 percent higher than November’s numbers, public records show.
The Florida statewide foreclosure average is 944 days, or about 2.6 years. It is is the third-longest timeline in the country, behind New York (1,029) and New Jersey (999).
With more than 350,000 cases on dockets across Florida, the state ranks third in the nation behind New York and New Jersey for longest foreclosure timelines, according to RealtyTrac.