South Florida residents probably can’t help but notice all of the condo towers that are popping up all over the place. With the real estate downturn of a few years back seemingly firmly in the rearview mirror, developers and investors are taking full advantage of the fact that the local real estate market is a hotspot.
But, according to a recent report, the building boom of condo units may be creating more inventory than there is demand for, and as a result some believe that a buyer’s market is emerging for those interested in condos. As the article notes, most of the time a 6-month inventory of units is considered to be a stable market – more than that is considered a buyer’s market, less is a seller’s market.
This turn in real estate transactions may have even more of a push for buyers coming up in the near future as well. With more condo towers either currently under construction or in the planning and approval stages, the inventory will only increase.
This is all good news for anyone interested in residential property in South Florida, but the investors and developers behind the ever-increasing condo market may take notice of the turn in fortunes. With all of the negative consequences that came in the fallout of the real estate downturn a few years ago, many developers and investors may be a bit more cautious this time around. However, for now, it appears that prospective buyers have the upper hand in any negotiations for a condo unit in South Florida. That could be quite handy when it comes to be time to negotiate the terms of sale in a contract.
Source: Miami Herald, “Greater Downtown Miami looks like a buyer’s market for condos,” Peter Zalewski, Oct. 5, 2014