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If new construction is a sign of better things to come for the South Florida housing recovery then we need more of it. Outside of condos very little new construction is underway in Dade and Broward counties. One look at the Miami skyline and it is dotted with cranes as new condos are going up like doves at a peace rally. It is a sign of the times. Condos are in demand, and foreign buyers are willing to invest in them.
But Broward is a different animal. Outside of Fort Lauderdale most of the area is basically suburbia. Our biggest problem? The available land in Broward is tapped out. Some builders have been forced to simply start new projects on abandoned golf courses. Yes, this takes quite a bit away from the scenery, but we have to put people to work somehow. Condo projects on the beach in Broward do not typically do as well as Dade either. From a buyers point of view, especially a foreigner, why would you want to purchase a condo in Broward when you can live near all the action in Miami? It makes sense because the two counties offer totally different lifesyles.
So, how does one measure the success of the housing recovery? Some would say sales in the area, but new construction homes and townhomes are a very clear indicator of how well we are doing. Broward has very few new projects in the pipeline, but those that are in the works are making a splash. For those who do not want to deal with the aggravation of a short sale, the negativity of a foreclosure, or the competitivness of a traditional sale, new construction offers a very different and easier closing. You get what you want, when you want it, and the price is set. If you like a sure thing new construction is as good as a Vegas lock. However, be leery of a builders contract. They are very one-sided and as thick as a phone book. Once you are in, new construction is like the mafia, there is no way out. Take a realtor with you and have him or her negotiate the best possible deal for you. Do not attempt to do this on your own! You have nothing to gain from it. The builder pays the realtor's fee and it does not in any way affect the sales price.
I can see some signs of more projects possibly arriving on the horizon, but there has to be more activity before I can honestly say that the housing market is in serious recovery. New construction has to play a part in the recovery of the housing market as it is a very integral part of the economic equation. Without it we are left with nothing more than short sales and foreclosures. This new construction will set the tone for more primaries to come in and buy, thus easing the burden on the real estate market because primaries are should always be our bread and butter, not investors.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.