There have been a lot of talks, conferences, studies, prediction or whatever you might prefer to call it, as to how the Real Estate Market in South Florida will do later this year and in the coming years. Of the finding, the most highlighted is the probable and disturbing oversupply of condominiums. This is alarming because as the oversupply will continue, it will surely result in lower prices. However, it should be noted that the oversupply is predominantly present in the high-end real estate market. Contrary to the fate of high-end real estate market, the low-priced properties in South Florida, although somehow with supplies too, are being sold more often than the former. In contrast, to the average listing of the high-end real estate which is slow at 55 months, lower-priced properties are doing better with an average listing of 14 months.
To put the two in contrast, the data shows that supply is present in both high-end and low-priced properties in South Florida. This, in turn, results in a significant decrease in property prices. While these facts and forecast of oversupply is undeniably alarming, experts have been quoted to assure people that there will be no market collapse similar to what happened about a decade or so ago. This is in line with the fact that the real estate market in South Florida is gaining a positive momentum over the past months regardless of the noticeable oversupply in properties.
Inventories might have been alarming with supplies of property listings, but it is somehow overshadowed by the undying number of interested buyers. Many are now considering the properties while these are still offered at a low price because real estate experts predict that soon, the lower prices which are caused by oversupply will be partnered up with increasing interest rates. Currently, house prices in South Florida have an average selling price of $300,000.00 while condominiums are at $200,000.00.
The mentioned continuous interest of buyers has been turned into the number or house sales in South Florida. The sales are somehow becoming robust to which some real economist based their conclusion that soon, house prices will increase once again and there will be less supply by that time. Experts said that the rate of successful sale transactions will be fluctuating based on these findings. To conclude, as long as there are people who are continuously considering to buy properties in the South Florida area, the real estate market should not fear the existence or probability of an oversupply.