Understanding The Home And Condo Real Estate Market In South Florida

One of the main concerns of homebuyers in South Florida is the price spike in the local home real estate market. For a time, wealthy foreigners were making purchases left and right while locals, especially those with minimal educational background, were having a hard time finding the perfect budgetary fit when breaking the bank was not an option.

Potential homebuyers from other states have also been added to the competition mix. Even with near-steep pricing, the deal for South Florida remains relatively attractive compared to other global centers with prices closer to exorbitant levels. The lifestyle experience is also what South Florida is selling. The thriving cultural, gastronomic, and events scenes helped in the creation of South Florida’s reputation.

Image source: terragroup.com

Favorable conditions might help local buyers, especially if the dollar stays strong, incomes increase, and the pricing pressures ease up. The only problem one might encounter would be shortages in the inventory for certain price ranges that are competitive. For those ranges, the market usually has only four to five months before supply gets depleted.

The luxury market, as expected, normally takes a backseat to mid-range homes. Both single-family houses and condos have longer periods of non-occupancy and supply availability. Such conditions, though, are already manifestations of a period of stabilization compared to last year. But affordability concerns will always rise whenever there is tighter supply which is usually represented by the mid-market where a lot of the sales would come from.

Image source: terragroup.com

Pedro Martin, Terra Group’s Chairman, Chief Executive Officer, and Co-Founder, is a recognized force in South Florida’s real estate industry. Before founding the company, he practiced real estate law as a partner at Greenberg Traurig for 25 years, representing developers and financial institutions since the 1970s. To know more about his work, visit this blog.