South Florida has been an excellent place to purchase real estate for years. Because of the fantastic weather, close proximity to beautiful beaches, and a vibrant Florida nightlife, home and condo buyers have frequently looked at this area for vacation home purposes or full relocation.
Unfortunately, recent trends have shown that South Florida’s condo and townhome market has plummeted in recent months.
According to the South Florida Business Journal, real estate sales volume was down in each of the three major metros of Orlando, Jacksonville, and Tampa.
The statewide condo market performed better than the South Florida-specific market. Condo sales across the state were down 1.8%, while the median sales price grew from 7% to $183,000. South Florida’s condo’s market saw sales decreased a significant 10.1% to 3,914.
“As the ongoing supply of for-sale homes continues to tighten, it can create a cycle of frustration for homebuyers, especially those trying to become a first-time homeowner,” said Christine Hansen, 2018 Florida Realtors President and broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “If move-up buyers can’t find a home in their desired price range, then they aren’t likely to leave their current home, which in turn makes entry-level properties even more scarce. Buyer demand is high, but the shortfall of inventory — particularly around $250,000 and under — is impacting affordability in many areas.”
Another possible contributing factor to the dip in home and condo sales across the state is the ever-growing risk of major storms damaging Florida real estate.
Condos in Florida are required to undergo public inspections every 40 years but with major storms striking the peninsula on a regular basis, Florida real estate owners might want to schedule even more inspections and property repairs.
Hurricane season is one thing, but even small tornadoes can spiral into massive storms that wreak havoc across Florida.
According to The Washington Post, three tornadoes touched down in late April. The storms flipped RVs, uprooted trees, and flew vehicles across the sky. Here is a video of the twister that caused major damage in Florida and potentially hindered the already suffering condo and housing market: April 22 Florida Tornado.
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