Residents of South Florida have no doubt seen firsthand by now the land development rush in the area. Residential development, in particular, has been seeing quite a jump over the last several months. Many market watchers across the country have taken notice of the winning streak that residential property in South Florida has been experiencing, and one article recently focused on the prospects of the local condo market.
According to the article, the condo market in South Florida has all but returned to pre-2006 highs. Inventory of available existing units has plunged so rapidly and to such low levels that new condo towers are popping up all over the South Florida counties, and Miami-Dade County in particular. Investors are able to sell the units before they are even built, and many are starting to wonder whether another “bubble” could be imminent.
For the time being, however, foreign buyers are a huge part of driving up demand for residential real estate in the ever-increasingly popular Miami area. What’s not to love? Beautiful weather, tons of culture and celebrity hot-spots and nightlife are all part of the attraction of having even a small piece of property in South Florida. But, as demand goes up, prices go up.
The current conditions are great for sellers, but as previous posts here have mentioned it can leave buyers locked in bidding wars, sometimes with multiple other interested parties. When a seller’s market develops, the seller is in position of power when it comes to determining both the selling price and contract terms. A booming recovery in the real estate market is good news for immediate economic concerns, but when considering a purchase in the area buyers should be aware of the potential long-term complications that may develop over time.
Source: Yahoo! Homes, “Miami condo market again defies gravity — and reason,” Diana Olick, March 19, 2013