Originall posted on my Miami Condo blog on 7 September 2007
It's no secret that the brakes have been applied on the Miami Condo boom. The overly exuberant condo market which flourished in the first half of the decade created an unprecedented building spree-a spree which now finds itself without the aggressive purchasing trends which create it. From Biscayne Bay to Coconut Grove It's a tougher time to be a condo developer in Miami, but it's not all bad.
While there is more inventory on the market and sales cycles have lengthened, what most real estate agents and developers will tell you is that this is a correction, not a crash; expect things to stabilize, not spiral out of control. That said, a correction is a correction.
What does this mean for the Miami condo buyer? Good things, on several fronts.
First, now that the buying frenzy is officially a historical note, prices during this 'correction' should return to more realistic levels. Buyers edged-out by the purchasing frenzy will find themselves again able to consider a condo purchase. The luxury condo buyer won't see the same deep discounts that the mid-range shopper, simply due to the same overruns in the most exclusive price ranges, but expect discounts at all price points.
Second, buyers will be able to shop with more confidence that their purchasing power brings something to the table. The days are gone of a condo hitting the market on Friday and being sold by Saturday morning. The power of the pocketbook creates room for negotiation and concession.
Finally, more opportunity to choose the perfect home exists in the market now than in several years. Since you won't be faced with making a snap decision and plunking down tens (or hundreds!) of thousands of dollars in earnest money to protect your find the minute you walk in the door, you'll have the opportunity to shop the market and find that perfect condo.
Whatever your budget, if you're considering a condo in downtown Miami, South Beach, Coral Gables, Coconut Grove, or Biscayne Bay watch the market closely. Monitor pricing fluctuations and weigh out the pros and cons of buying or waiting to see if prices continue their decline. You've seen that sunset, right? It's still beautiful southern Florida. Don't miss getting your piece of paradise hoping that prices will drop perpetually. This market has weathered its share of storms, and one thing is for sure-the buyers will be back.
Comments(1)