Conflicting Views on the South Florida Housing Market
Reporters from the Sun-Sentinel are beginning to question the viability of the South Florida housing market. With so many investors hoping to cash in on a quick profit, the market for luxury housing may begin to become oversaturated.
The article cautions that adjustable rate mortgages may start going up soon, and that higher housing costs could reduce the number of potential buyers on the market. People looking to make a quick profit may be stuck holding property longer than they wanted to, or be forced to accept a smaller margin.
It is estimated that in Miami, approximately 70 percent of new condo buyers are investors.
In spite of words of caution, many investors remain enthusiastic about their chances. The South Florida housing market is outperforming the rest of the nation by a significant margin, with better than 10 percent appreciation on most properties.
The big question now is just how long it will last.
The article cautions that adjustable rate mortgages may start going up soon, and that higher housing costs could reduce the number of potential buyers on the market. People looking to make a quick profit may be stuck holding property longer than they wanted to, or be forced to accept a smaller margin.
It is estimated that in Miami, approximately 70 percent of new condo buyers are investors.
In spite of words of caution, many investors remain enthusiastic about their chances. The South Florida housing market is outperforming the rest of the nation by a significant margin, with better than 10 percent appreciation on most properties.
The big question now is just how long it will last.
