South Florida's Real Estate Market, Witnessing Downward Signs
Monday, February 13 2006 @ 02:25 pm UTC
Contributed by: jron
It has been said that South Florida experienced probably the most successful run in it's history over the span of the past 5 years. Since the new millennium year of 2000, the land demand has hit every corner of its region. It's number speaks to itself, The increase in such areas as Pompano Beach which experienced more than 150% increase over the past 5 years, also Hallandale Beach and Sunny Isles Beach shares the same increase they have 200% or more in increase, and also probably the biggest leaper among the group is North Bay Village which has 250% in total increase.
And because the housing market is on a state of boom over the years, it creates a lot of opportunity for other fields to boom either, because of the boom, it open up a lot of jobs that involves housing, from construction, supplies and others. Jobs became in demand and homeowner equity found a way to create billions. It was really a great 5 year run for its market and for the whole South Florida market itself.
Despite the success the market has been experiencing it has became a media target for analysts and experts, donning a the question "Has the boom comes to an end now?" well, a number of experts says a big YES, why? they've predicted that the 5-year run of the market has eventually hit the wall, saying the signs are obvious and already present.
Signs such as:
* In recent months that the market has been observed, the prices are somewhat shaking, expert says. They have observed that with sellers now lowering their expectations, an obvious sign that it has really feeling the effect.
* Home sales are now staying on the market longer than usual.
* Doubled number of home for sale are slowly popping up.
* Cautiousness is now becoming obvious to buyers.
Most of the signs are already surfacing, that is why experts are really predicting the 5-year run of the home mania have eventually ended.
Also another market who has been reportedly tuning down is the single-family homes, although experts still has a positive vibe about its market predicting a decent 5-10 percent increase is still in consideration.
Metrostudy, a real estate consulting firm and its analyst Bradley Hunter commented on The Miami Herald that ''That is because so much more stuff has recently been sold in the west and much has been bought by investors and speculators,'' That made experts saying that those parts are becoming somewhat ''Vulnerable''.
A fall of the condo market are being expected by the experts, they said that it is on a danger state for slowing and even falling, why? Well they are blaming that the boom had really affected it, saying that during those times, many units were sold so fast that it will be hard for its market to expect the same result as before.
Indeed South Florida's real estate market boom hits the wall, and experts says they hit it hard. Signs are there and very obvious that investors may have to take 2nd thought on investing their money wisely on the area. Although the year is still on a start, the predictions are there, and the bad part is it may just come true.