Dissenting Opinions about the South Florida Real Estate Market

Reporters from the Sun-Sentinel are starting to question the longevity of the South Florida housing market. With so many investors trying to turn a quick profit, the market for high end housing in the area might begin to be oversaturated.



The article is concerned that adjustable rate mortgages may begin going up shortly, and that higher housing costs may shrink the total number of possible shoppers on the market. Those looking to quickly resell their property may be stuck holding real estate longer than they had hoped to, or be forced to take a smaller profit.



It is forecasted that in Miami, close to 70 % of new condominium shoppers are investors.



Financial planner Scott M. Kahan summarizes the situation by offering that "People buying have to be concerned about their monthly costs going up, and if they can't at some point sell the place or lease it, can they cover their expenses by letting it sit empty for six months or longer?"



Despite these mixed signals, some investors remain excited about their outlooks. The South Florida housing market is performing better than the rest of the nation by a sizable amount, with better than 10 % appreciation on most properties.



The big question now is exactly how much longer it can continue.