Back in the prior boom years of 2004-2008/9, Developers and Real Estate Agents were always confident that the South Florida real estate market was unstoppable. No one would admit that there was too many condominiums being built, or recognize other potential market conditions that would come to wipe out many investors, developers and even real estate agents who saw sales plummet. The truth is that South Florida has been saved by a number of unforeseen factors including the fact that people (mostly foreign nationals) were able to buy condominium units at prices that we may never see again while their currencies were extremely strong against the US dollar. Now the prices are again at all time highs, there are more units coming to the markets than before and the economies of most Latin American countries are not the same as the past few years. In fact, recent reports show a major slow down in Latin American buyers as well as current Latin American owners looking to sell while the market is high in South Florida to take advantage of their falling currencies.
In Miami and Miami Beach, the Related Group alone already has under construction four condominium projects with 924 units and four others with 1,349 units in the works, according to company data. Thousands of units are going up in Miami as other developers also rush to attract wealthy Latin American investors willing to make hefty deposits and pay steep prices on pre-construction condominiums.
With the pace of condo development hitting high gear, many wonder how much is too much. However, this was not the case at the Haute Living Real Estate Summit where many developers articulated why they feel there is no reason to fear another balloon.
Here is an article from Hope Gainor about the Haute Living Real Estate Summit from which you can see how confident the major developer in South Florida are. One would surmise that just like before the last bust, no one who is a developer or a real estate agent will admit that there is any risk in the current market.
The question now becomes are South Florida developers going overbuild the market this decade like they did last decade, what will the impact be if pricing is too high, and if the market is not attractive to foreign buyers who have fueled the recent buying spree.
Only time will tell, but there is no doubt that right now in South Florida nearly 22,500 units are now being proposed east of Interstate 95.