Although the good data on the South Florida real estate market has been coming for months, there have been no estimates about how long the hot streak will last. That changed recently, however, when a report was issued estimating that residential real estate prices will continue to climb all the way through 2013.
Not only are prices set to continue to increase, but recent data has shown that increases have come in large percentages. Three South Florida counties, Broward, Miami-Dade and Palm Beach, saw an 8 percent increase in home prices in the third quarter of 2012 when compared to the third quarter of 2011.
While it is good news to know that some experts are expecting the South Florida real estate market to stay hot for over another year, it is easy to see how the market could begin to cool down after that point. Residential development in the area has begun to pick up considerably as demand increases. And much of the planned development is for condos. As supply increases, prices will likely begin to stabilize.
However, South Florida residents are probably happy to take the gains while they’re coming. Buyers will likely be paying higher prices than they would have just a few years ago, but that is good for those area residents who are selling. But still, negotiations can be tricky, so sellers should be mindful of the exact contract terms being discussed by their representatives. It is possible for sellers to lose the upper hand if real estate agreements include unfavorable terms. And there are always concerns about title issues and lack of disclosure. Getting the right information can be the key to completing a successful sale.
Source: SFGate, “South Florida Set to Outpace Nation in Home-Price Increases through 2013,” Oct. 24, 2012