Most of our readers know that 2013 was a heck of a year for residential real estate in South Florida. Dozens of condo towers are under construction throughout Broward County, Palm Beach County and Miami-Dade County, the sales prices for single-family homes continued to rise almost non-stop throughout the year and many sellers even saw bidding wars for the most desirable properties. It would be hard to blame anyone who expects more of the same in 2014. However, a recent article suggested that some figures may see slower growth in the new year.
According to the article, many experts, while recognizing the amazing recovery in the housing market, have suggested that sales prices will rise a bit slower this year. But, even though that may sound like the first bit of bad news in a long time when it comes to residential property in South Florida, the experts indicated that the slowdown is actually good news.
South Florida residents know better than most that when prices rise too much too fast a "bubble" could result. When the national housing market began to crumble in late 2007 and early 2008, the South Florida area was one of the hardest hit regions in the country. The recovery of recent years has made that bubble a distant memory, but some experts have always warned that the mistakes of the past could be repeated.
For the average buyer and seller in South Florida, trying to calculate the best time to jump into the fray can be difficult. There are many factors that can influence when a sales price may be just right, and the residential development planned throughout the local area, for instance, will be one factor to watch in 2014. But, stability in sales prices could ultimately be beneficial for both buyers and sellers - providing a bit of predictability is usually a good thing when it comes to such a major financial transaction.
Source: Sun Sentinel, "Slower growth expected for South Florida home prices in 2014," Paul Owers, Dec. 28, 2013