Many real estate experts - and many among our readers - have been looking for signs that the residential real estate market in South Florida is beginning to cool down. For the last few years, those signs have been hard to come by. Residential development, particularly condo development, has been quite steady in the South Florida market. However, a recent report noted a factor that hasn't been seen in five years: the resale prices for condos in the local area have fallen.
According to the report, recent resale prices for condos in downtown Miami fell 4 percent in the first half of this year. Those who pay attention to the residential real estate market will take note of this significant development, as it marks a slight - but noticeable - change in the trajectory of at least one slice of the market for residential property in South Florida.
However, this shift doesn't come with only doom-and-gloom prospects. In fact, as the recent report noted, it could actually end up being a good thing for the local economy, as it will help make living in downtown Miami more affordable. The Miami metropolitan area has consistently ranked as one of the least affordable places to live in America.
Condo development is continuing in South Florida, and inventory is started to outpace demand. Many experts are probably hoping that the local market doesn't flirt with the dreaded "bubble" territory. But, for buyers, these factors add up to good news: higher inventory, less demand and falling prices makes it an attractive time to start looking for residential property in South Florida.
Source: Miami Herald, "In sign of slowdown, downtown Miami condo prices fall for the first time in five years," Nicholas Nehamas, Aug. 8, 2016