Some knew it would happen, others didn’t.
When the housing bubble burst a few years back, some people saw and experienced it as the loss of thousands of dollars of equity almost overnight. Others saw a unique opportunity to buy residential real estate at rock bottom prices. And in South Florida at least, those who saw the burst of the housing bubble as a buying opportunity are starting to cash in.
According to a recent report, of the approximately 5,100 condo units that were purchased by investment groups during the worst of the housing crisis, almost 3,200 have now been resold. Broward, Miami-Dade and Palm Beach counties offered some of the most heavily sought-after areas for condos that were either in foreclosure or close to it.
Now it seems that the demand for residential property in South Florida is growing at such a pace that even all those thousands of condo units won’t be enough to satisfy the people drawn to the area. While those who bought up and held onto the backlog of condos cash in, others are drawing up residential development plans to add thousands more condominiums to the area.
One jaw-dropping report speculated that as many as 10,000 additional condo units could be proposed in South Florida by the end of this year.
While this news may be good for people who are involved in the land development business, there are still some who are sounding a warning bell. Cautious individuals in the real estate industry warn that all the proposed new construction could lead to oversaturation of the market — again.
Floridians who are familiar with our blog have seen the number of positive indicators about the South Florida real estate market. But it is always good to remember that hammering out contract terms and real estate agreements can be tricky, and the market remains fluid. Those with an eye for Broward County real estate should be sure to jump in at the right time to ensure the best deal possible.
Source: Sun Sentinel, “Investors reselling condo units bought during housing collapse,” Paul Owers, July 10, 2012