Although the news regarding South Florida real estate has remained positive throughout this year thus far, the last few weeks our readers may have noticed that there have been a few negative reports amidst all of the positives. The hope is that this is just a sign of a bit of market stabilization, as opposed to a sign of a potential downturn. For instance, a recent report that analyzed the data on real estate transactions in South Florida from June of this year noted that while the local market for single-family homes in the area was strong, other residential real estate, like townhomes and condos, didn’t fair nearly as well.
The news for single-family home could hardly have been better. The figures for both sales prices and the number of transactions surged in June of this year, when compared to June of last year. Sales prices were up 5.8 percent, and the number of homes sold was up a whopping 12.2 percent.
Other residential real estate options did not experience quite the same level of increase. In fact, the figures may indicate a problem: while sales prices made a huge jump of 14.3 percent over the one year period, sales of condos and townhomes in June of this year actually decreased when compared to June of last year.
Of course, even a few negative reports can sometimes be a good thing for a real estate market. In South Florida, the news on residential real estate has been so good for so long that some experts were beginning to worry that another “bubble” was being created. When figures like these show both positives and negatives, most experts would probably agree that it is just a sign of healthy market fluctuation.
Source: South Florida Business Journal, “Good and bad news for South Florida home sales in June,” Brian Bandell, July 22, 2014