The residential real estate market in South Florida has been thriving for the last couple of years. Residential property is being developed throughout the local market, with several different condo towers under construction. However, in the last few months our readers may have begun to hear whispers of concern. Some people who monitor the real estate market are beginning to believe that the condo market in particular may have already peaked.
That was the concern noted in a recent news article, which speculated that the former optimism in the residential real estate market may be turning to pessimism. A number of factors were cited in the article to validate these concerns.
First, there is the fact that the inventory of available condos in the South Florida area is currently around 17 months. That is a very high figure, representing the fact that the local real estate market may be starting to become saturated with supply at a time when demand may be beginning to level out – or even drop. However, the main factor that may be driving concern is this: both the number of transactions taking place, as well as resale prices, saw a decline for the first time this year recently.
Of course, all of these concerns are mostly an issue for sellers. People who are in the market for a condo at this time – the buyers – may be finding that the market is shifting in their favor and with it an increase in their negotiating power and purchase power.
Source: Miami Herald, “Has Greater Downtown Miami condo resale market passed its peak for this cycle?” Peter Zalewski, Aug. 16, 2015