Residential real estate transactions involving condos drop

Residential real estate transactions involving condos drop

People who are interested in the townhouse and condo market in Florida may find comfort in knowing that the inventory remains strong. This is because this past winter in the southern part of the state was the worst season for townhouse and condo resale transactions during the past few years. Several factors have played a part in the decline in residential real estate transactions involving these types of homes.

First, many sellers have been listing their townhouses and condos at prices that are too high for the current market. Second, many competing pre-construction projects are taking place; more than 30,000 new units are slated for development in South Florida. This all resulted in a drop of 6 percent in townhouse and condo transactions in the region. A little more than 24,000 townhouses and condos were resold between November 2013 and April 2014.

The last period when fewer of these transactions took place was during the period of 2009 to 2010, when the market for real estate crashed. Historically, winter has been one of the most popular times of the year for people to buy condos. It’s a time when many “snow birds” go to South Florida to escape winter weather elsewhere and enjoy Florida’s nightlife and events.

In the coming summer months, more townhouse and condo units may be listed, even as many developers are completing condo towers featuring thousands of units. Today really is the buyer’s market in Florida real estate, as far as condos are concerned. However, a deal may fall through if the two sides can’t come to an agreement during the negotiation process or if challenges arise concerning title clearance and other complex transaction areas. Understanding related laws in Florida can help individuals to make their residential real estate transactions as seamless as possible by avoiding common pitfalls.

Source: Miami Herald, "South Florida condo market experiences worst winter buying season since 2009-10", Peter Zalewski, May 25, 2014