Recovery of the southeast Florida property market is a while off, it seems. Yesterday's Miami Herald featured an article on this very subject which highlighted the fact that many experts predict no sign of an upturn this year, with any improvement in the market only expected in 2010 or 2011 at the earliest.
A major reason for this recovery being a while off yet is the vast oversupply of properties on the market. Although there is a considerable demand, with some purchasers grabbing some real bargains right now, the huge number of properties coming on for sale means supply will still outstrip demand for some time yet. The large property inventory in this part of Florida can, of course, be attributed to the increasing number of foreclosed properties that are coming up for sale.
As often mentioned before, in normal market conditions, there would be a six to twelve month supply of properties for sale. Currently, that time period stands at 35 months for Dade county and 24 months for Broward. Although other factors may indicate a recovery of sorts - for example, sales of properties in February 2009 were up 68% for houses and 71% for condos in Dade county, compared to the same month last year - until the supply of properties comes closer to demand,the property market in southeast Florida won't improve for some time. Current economic conditions and unemployment concerns also add to the property market's woes.
Nevertheless, as prices continue to tumble and more properties coming available every day, if you're interested in buying, now's a perfect time to start looking.
Article: A bumpy real estate road remains (Miami Herald, 19th April 2009)
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1 comment:
Indeed, nowadays, the real estate market is going really bad, but some consumers this is a great opportunity to buy property at a low price.
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