Previous posts here have addressed concerns over whether or not the South Florida real estate market is entering the dreaded “bubble” territory, similar to what caused a great many headaches about eight years ago. Some have seen the rapid increase in the amount of residential development in the local area as a concern because it is starting to match the rate of increase seen in the previous bubble. However, according to a recent article, the past is no predictor of the future when it comes to residential real estate.
The article notes that while there may be similarities between the present real estate market and the pre-bubble bursting market of several years ago, many things have changed in South Florida economics and demographics in the intervening years. The buyers in the area now are more committed to the staying and developing the market, as opposed to being investors who may just try to buy low, sell high and get out of town.
The article defines a real estate “bubble” quite simply: too much supply, not enough demand. The present market in South Florida does not have this problem at all – right now. The reason there is so much land development either already underway or in the planning and approval process is because there is strong demand from both foreign and domestic buyers.
Concerns about a bubble in the South Florida market appear to be subsiding, for the most part. However, real estate trends can be difficult to predict. Anyone who is planning to get into the market, either as a buyer or a seller, will probably want to do everything they can to make sure they are making the right decisions at the right time.
Source: Miami Today, “Real estate bubble worries deflated,” Susan Danseyar, Sept. 17, 2014