Recent posts here have covered the reports that there are some changes coming to the South Florida residential real estate market. In some areas sales prices are decreasing for residential property as inventory continues to build. In others, the residential development of condo towers is having an impact on the per-square-foot value of condo units. But, even though the South Florida area is starting to see some change in the real estate market, these indicators don’t have to necessarily be viewed as factors in a “downturn.”
Instead, when these factors are combined with others, such as low unemployment in the South Florida area and a continued desire from buyers to make purchases in the area, it may just be that taken altogether the signs point toward stability in the real estate market. For example, Freddie Mac recently released a report that shows that these factors, along with the number of mortgage applications that are being submitted and affordability rankings, showed stability. In the report’s Multi-Indicator Market Index that focused on the month of June, the tri-county area scored a 91.9. One hundred is the ideal score, and anything over 80 shows stability.
However, despite that high score, the South Florida area wasn’t exactly tops in the nation – far from it. The area actually ranked 26th when compared to metropolitan areas throughout the nation. Affordability of housing appears to be one of the main concerns.
The complexity of the residential real estate market in South Florida can be daunting for some would-be homebuyers. But, with the right information, South Florida residents can make the best decision for their own unique circumstances.
Source: Sun Sentinel, “South Florida housing still healthy, but challenges remain, reports say,” Paul Owers, Sep. 1, 2016