Many South Florida residents wade into the residential real estate market very carefully, ever mindful of the wide variety of complications that could pop up, from title issues, lack of disclosure and negotiating contract terms. But, one thing is clear: these issues are not stopping buyers from doing their best with what is available in the local real estate market.
According to a recent report, the actual figures when it comes to residential property inventory in South Florida may shock our readers. The report indicates that the inventory of townhomes and condos alone has decreased a whopping 65 percent from the inventory figures in 2008. This is despite all of the residential development that is taking place in Broward County, Palm Beach County and Miami-Dade County. So, what can a buyer expect in the local real estate market? For months, the answer has been painfully clear: rising prices and bidding wars.
The South Florida real estate market has been buoyed by the influx of foreign buyers who want to own a piece of the sunny, warm and exciting area that surrounds the Miami metropolitan area. Foreign buyers from Latin American to Western Europe have come into the area and placed large deposits on the rising condo towers that are part of the construction boom occurring throughout these three South Florida counties.
For those selling property, it seems that conditions could not be more ideal, and it must seem like a miracle after seeing the worst that a bottoming-out real estate market has to offer in recent years. Now that the market is surging back, however, the average buyer may be on the outside looking in. With this type of market fluctuation, knowing when to purchase and when to wait can make all the difference.
Source: The Miami Herald, “South Florida residential resale inventory down 65 percent from five years ago,” Peter Zalewski, Nov. 24, 2013