Is Florida's real estate bubble about to burst? This is one of the questions I am asked most. Over the past year prices have gone up approximately 33% and 105% over the last five years. Because of this unbelievable appreciation, many people are scared the market is going to crash real hard.
In my opinion, I do not feel that way regarding single family homes. There are a few reasons why. After doing some research, I found out that between the middle of 2000 and 2004 there was a demand for nearly 560,000 new single family homes and only 540,000 could be built and delivered. If you also consider that approximately 15% percent of buyers are foreign and are getting great deals because of the devalued dollar, that more than one third of homes are second homes, and Florida still being a relative bargain for homes, the single family home market still looks strong.
As far as the condo market, I feel there will be a correction within the next few months. The main reason is the incredible amount of construction taking place. In Miami Dade County alone, there are estimates between sixty to a hundred thousand condos either in the application phase, planning or first phase, approved to be built, or under construction now. The number is staggering if you compare that to the 9,152 condos that were built between 1995 and 2005.
Please share your opinions with me.
Amit Bhuta
Real Estate Helper
Kendall VIllage Homes
(305) 439-3031
www.DadeCountyMLS.com
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