Just when you thought the market of condos was untouchable, it showed its true and ugly colors when record-breaking numbers of condos appeared on Southeast Florida ’s resale market. The tricounty regions of Broward, Palm Beach, and Miami-Dade have been hit the hardest in this unexpected turn of events.
The disappearance of the condo short sale, a transaction approved by the lender in which a property goes for less than the loan amount, from the South Florida’s property market is the culprit responsible for property owners putting their condos on the market. Property owners are not the only one who have been caught amidst the turmoil, but bank owned condos look to be facing the same fate.
Since 2009, this is the second time we are seeing the condo and townhome markets going on a downward spiral. To add to property owners worries, the resale value of condos and townhomes in South Florida has fallen by 5 percent.
In Miami-Dade, Palm Beach, and Broward, over 27,150 condos and townhomes are listed on the market, but what is unfortunate is that hardly any of them are getting offers from prospective buyers.
If you compare the number of condos on sale in 2014, which was 24,360 and in 2013, which was 19,300, the number reported in 2015 is quite higher, thus putting homebuyers in a rift, as they will have to pray and hope to get a buyer. Here is a rundown of the condition of three regions on South Florida impacted the most by this:
The county with the highest population of residents, about 2.6 million, has the highest number of condos and townhomes listed for resale. About 11,850 units are available for purchase.
Broward has the second largest population with 1.8 million residing in the county. About 8,725 condos and townhomes are available for purchase.
Palm Beach has a population of 1.4 million people, and has 6,600 units listed for sale on the market.
As mentioned before, the residents of these three counties run into one common problem of having no buyers to take the property off their hands.
Instead of targeting buyers, property owners should get in contact with investors. Investors will likely take the condo or townhome off their hands quicker than if they were to sell it to a prospective buyer. In a market of fewer buyers, approaching investors seems like a feasible option, one that property owners of condos and townhomes should definitely try.
Investors will not ask too many questions, as their primary goal is to purchase property for investment purposes. Your property will not gather dust in the market, and you will get the exact or approximate asking price for your condo or townhome.
Do you own a condo or a townhome? Have to been impacted by the recent downturn of the condo market? Let us know in the comments!