Current State of the South Florida Real Estate Market

Originally Posted on Saturday, November 11, 2006

As we launch the new version of BlueCoastOnline.com and begin our series exploring the South Florida real estate market the current market has been on a gradual flattening for the last several months. Although, to the disapppointment of many doomsayers, the market has not crashed, no imaginary "Bubble" has burst in South Florida. The South Florida real estate market has solid funamentals the protect it from some of the more dramatic drops that may be seen in other parts of the country. Prices are flat though in South Florida over the last year. The Median price of a condo today is $270,800 and was $269,200 a year ago, a 1% gain, according to the Miami Metropolitan Statistics Area (MSA). The median price of a home today rose to $167,900 a 3% gain froma year ago.

Those are the numbers, the truth behind the market is a balance between the fundamentals and the recent history and performance. This market started to really boil about 5 years ago as result of several factors coming together such as historically low interest rates, the rapid depletion of developable land, new creative financing options for developers and borrowers and the first Baby Boomer retirees and millionaires beginning to head south for the sun. The overheat saw people sleeping on sidewalks overnight to be able to buy as many units as possible in Miami's glorious new condos. Most of those condos are close to being completed now and the market has changed as so many new units become available for buyers.

This is now an excellent time to buy as the market is depressed from the hangover of the recent boom. There are more and more deals that are becoming available as people who bought late in the boom are realizing that they got in too late and need to get out now. And as more and more owners decide that the best option in the face of rising debt is to let the bank foreclose on their property there will be even more deals that become available. The bottom line is that if you have the guts to buy in a market that everyone says is "bursting" becuase you know that the fundamentals are there, then you will be the big winner when the next boom inevitably comes.

Check back next month for another update!