South Florida Real Estate Comments

A Brand New Year

The question of the season is what will happen with the real estate market in 2006? The market has changed so drastically in the past few months - it is near impossible to speculate. But, there are facts that cannot be disputed and will have intense effect.
Low Unemployment: South Florida is enjoying one of the lowest unemployment rates in the country. This will force employers to offer higher salaries and better benefits. This gives the employees confidence that their job is secure, their salary will rise and their ability to purchase or upsize their home is possible. It also will draw employee from other areas of the country, increasing our population and absorbing current housing.
Lack of Land: Indisputable, we have a lack of developable land. Consumers love new construction homes. The trend to tear down and rebuild or total refurbish will continue to fill the need. More and more high density housing will come available - condos and townhomes. Single family homes will appear from time to time at a premium. The lack of available land will force land costs to increase - making new construction more costly than ever.
Cost of Construction: Not only is land costs increasing, but so is material costs. With the international shortage of concrete and rising fuel costs, materials to build that new building are rising quickly.
Florida Dream: Many folks around the country and around the world still dream of living in the sun and fun of South Florida. Baby boomers, young families, foreign nations keep Florida at the top of their lists of preferred places to live. It is reported that 1100 people move to Florida every day.
Negative factors include rising interest rates, rapid conversion of condos, rising insurance costs, high property taxes and of course - hurricanes.
What will we see in 2006? No one knows for sure. My prediction is prices will continue to rise, but at a more moderate rate - 12%-15% annually. Inventory will be a bit more balanced giving buyers an opportunity to choose and negotiate their home. Sellers will need to prepare their homes and invest in a good marketing program with a highly skilled and knowledgeable real estate consultant [like me!!]. Frenzies for new construction will continue, but condo conversions will slow.
These are just predictions, educated guesses, researched analyses. No one can truly predict the future.
If you have questions or are considering buying or selling real estate in 2006, let's talk. Let's sit down and discuss your goals and the current market and how we can best assist you.
Christine Pardo, PA
Realtor®, e-PRO
Broker Associate
Kroll Realty
Reg. Appraiser Trainee
Appraisal Source

posted by Christine Pardo, PA @ 9:24 AM