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Supply and Demand

By
Real Estate Broker/Owner with Preferred Properties Coastal Realty, Inc.

There are a great number of homes of all kinds and sizes peppered throughout the Florida Keys.  The fact is, however, that in a normal market the demand for existing homes here well exceeds the supply.  This is due to the very low number of building permits issued by Monroe County.  Our unincorporated areas receive just 197 building allocations yearly, 80 percent of which are for market-rate development and 20 percent are earmarked for "affordable housing".  Just-built affordable housing sells at a somewhat lower price than a market-rate home, but the owner of a home in the affordable housing category has to abide by a deed covenant which places a cap on what that person could ever sell the home for, and it limits the amount of income a Purchaser may have.  As a result, the very low number of new housing units that are available tends to put pressure, in a normal market, upon the stock of existing homes, making it hard to find a place to buy in the Keys. 

Right now, there are some abslutely fantastic bargains on existing homes here, and those lucky folks buying them will have a hard-to-get piece of Keys real estate when the market finishes returning to normal, the process of which appears to be well on its way here!

Comments(3)

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Scott Slocum
Florida Future Realty Inc. - Cape Coral, FL
Scott Slocum & Associates 239-222-4800, Cape Coral
The same is true here in Lee County to a point.  The upper end home prices have also come down and now you can even find a large number of gulf access properties in Cape Coral for under 300k something at the peak of the market that was completely unattainable by the average person.  I think that the seasonal population will be making some big choice throughout the winter months buying up all of the good deals statewide.
Oct 30, 2007 07:21 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor
I love the Keys - and I will indeed send anyone interested your way!!!  
Oct 30, 2007 12:08 PM
Charlottesville Solutions
Charlottesville Solutions - Charlottesville, VA

I like the green home with the drive though view of the water! Can you get me a super deal on that one?

You are my man in the keys!!!

Oct 30, 2007 11:51 PM