The Florida real estate market, for both commercial and residential property, has been improving after years of sluggishness due to the recession that began in 2008. However, recent reports offer conflicting information about the status of Florida's residential real estate market. In one report, an increase in condominium construction plans is tempered by a global economic slowdown and a stronger dollar.
The report begins with news that builders plan to construct more condos during this real estate cycle than they did in the last cycle, which began before the recession in 2003. The current cycle, which began in 2011, included the end of the recession and the beginning of economic recovery. However, the report also includes caution against unbridled optimism.
In the report, it is stated that the market is flush with properties and that plans for multiple buildings have already been altered or abandoned altogether. It is suspected that this is due to low pre-construction sales, as foreign buyers have stalled purchase plans due to the increase in the value of the dollar against multiple currencies. Another problem for South Florida's residential real estate constructors lies in new federal requirements that require increased transparency in real estate purchases that exceed $1 million.
With increased regulations and a market slowdown, some of those trying to sell residential real estate in Florida are offering generous incentives to potential buyers. Those who are looking to take advantage of these incentives may want to consider enlisting the help of a legal professional who focuses on real estate-related matters. An attorney can examine the incentives offered, along with the details of a potential purchase, to ensure a new buyer is protected.
Source: Miami Herald, "Real Estate/Ahead of the Deal: 50,000 new South Florida condo units announced this cycle," Peter Zalewski, Feb. 7, 2016