Cost of Living Archives | Real Estate & Investment Perspective by Karen Lee Bertiger

2026/07/082026/07/08

Debt to Income Ratios (DTI) Being Approved by Banks at Higher Percentage (40%) Than in 2007 (39%)

Not since right before the Great Financial Crisis have we seen this! It just appears to me that lenders are trying to get you to play with fire again.

BUYERS! This is a dangerous move at today’s real estate prices. Prices must come down, or you need to offer less on a property that fits your criteria, by finding a seller who is realistic on price and needs to sell (motivated.)

Or WAGES need to increase. Wages are NOT keeping up with inflation. The median income in the US today is approximately $85,000. The income needed to get that DTI under 30% is $110,000 for a wage gap of 28%!

Traditionally, DTI was 28/36%. These days, my recommendation is to keep your DTI under 20% if you can because of the problems with property taxes and property insurance.

Locally here in Florida, many insurnace companies are dictating that costly home improvements be made before renewing your policy. Don’t ignore this. Shop around for new insurance quotes immediately. Don’t let this slide into a situation where you end up with forced insurance placement from your lender.

Sellers would be wise to price their properties correctly from the beginning of marketing.

Remember, your property really isn’t on the market unless it’s on the list…the MLS…and is AVAILABLE to the public for showing to the entire market.

2026/06/072026/06/10

Downsizing Checklist – With Housing Costs Surging Is This a Good Move to Reduce Expenses?

What are your total transaction costs on the sale AND the purchase
What are the holding costs on the new home
Will you have to pay a capital gains tax on the sale of your current home
What are the moving costs
If you will be using your equity from the sale of your home to purchase the new home without a mortgage, how will losing the interest deduction affect your personal taxes
Will you need to store any of your belongings
Be sure to factor in your health care costs & inflation in your new location
It’s MUCH easier to accomplish a down sizing in your 50s & 60s than in your 70s & 80s
What repairs & delayed maintenance will be necessary of your current home to bring it to move-in condition
Can you afford the repairs & potential staging costs
If you will be purchasing your new home before your old home is sold can you afford the overlapping holding costs
Don’t waive a home inspection if you are buying a new build
Can you afford the inflation on home services in your new neighborhood
Will you regret getting rid of your “stuff”
You’re going to get decision fatigue
Will you have seller’s remorse
Make sure you’re not down sizing too small – you don’t want to have to move twice
If you are moving to a completly new area, consider renting before buying

Property taxes, hazard insurance and HOA fees are all increasing and up to 65% of homeowners with mortgages have “escrow shortages” — many were qualified at higher percentages of their income. In my opinion, I would not originate a mortgage (principal and interest) at more than 20-22% of my income because of it. With escrow shortages, your lender keeps the money on a monthly basis that was your old escrow PLUS the amount needed for your new escrow to meet ongoing payments. The average shortage in escrow balances was $2,157.00!!! Property taxes have increased by approximately 15% between 2019 and 2024 (Cotality.) Property insurance has increased approximately 70% between 2019 and 2025, says the Dallas Fed (March.)

This insurance issue is enough on its own to force some homeowners into falling behind on mortgage payments because they cannot move/downsize or otherwise lower their costs.

2026/04/152026/04/15

Arbitrage Opportunity

Things to consider for a current real estate opportunity window:

If you have property in a hot market (NE, Midwest) but want to relocate/retire/downsize to Florida in the near future, take advantage of your seller’s market where you are AND the buyer’s market where you want to be in Florida. Of course, that’s only one aspect. You need a real estate professional in Florida to answer questions, find appropriate properties, and guide you through your purchase and assist you in your move. Make sure it’s someone who is up to the task!

2026/02/282026/02/28

Inflation

Many people do not understand that inflation is a result of the government printing money. It makes your currency lose its purchasing power.

That’s why many people are complaining about affordibilty of everything. Prices have increased between 30-50% since 2020. Prices will not go down barring some disastrous event/deflation. The government works hard to prevent deflation. It will take many years for wages to reach the point where affordibility is no longer an issue.

I bet your income hasn’t kept up with inflation. Have you received raises of 30-50% since 2020?

2026/02/282026/02/28

End of February 2026 Observations

Why Do I Use a Letter B Logo?

My initial logo is to remind you to B present and design your life. I’ll B your professional guide. I’m a lifestyle design pro for finding your best nest financially, in your ideal location with the features you need. I scour all properties, including those not actively listed. As a consultative broker, there’s no pressure. I can refer you to the best real estate professionals in any part of the country. Just keep in mind that many agents have been licensed for less than 18 months and may not know what they don’t know. This can create many problems if their depth of experience about what could be a major problem is limited.

New Construction is Now Cheaper Than Existing Homes!

Median Sales Prices by County on the Treasure Coast

As of December 2025:

Martin County: $600,000; St. Lucie County: $395,000; Indian River County: $396,015

The marketplace is trending toward more balance; however, financing, insurance & property taxes are presenting financial hurdles for prospective homebuyers.

Difficult Transactions

It’s actually a really good thing to have a real estate professional direct your transaction, whether selling or buying. They can be the logical, cool headed professional who brings clarity to an emotionally charged, high stress, personal transaction. They should explain the entire real estate contract to you & point out terms & conditions that could cause problems. This helps prevent bottlenecks & they help you by keeping track of all the moving parts.

Paper Trails

A great agent keeps track of all required documentation & discloses things you might not think about yourself. Transparency & clarity are important to completing a successful real estate transaction.

A Resource and Advocate on Call

If you have a great broker, they’ll answer any questions you might have about your situation & help you with any information to enable you to make the best business decisions possible.

Florida Has More than 50,000 Homeowner Associations!