A recent Miami Herald article suggests that the five-year “explosion” in the South Florida housing market is about to become history. Real estate prices in the area have skyrocketed since 2000, boosting the local economy, but at the same time, reducing housing affordability.
According to a Herald analysis of home sales over the past five years, prices rose more than 150 percent in Pompano Beach, more than 200 percent in Hallandale Beach and Sunny Isles Beach, and over 250 percent in North Bay Village.
But the number of houses on the market, as well as the amount of time houses are remaining on the market are both on the increase. While prices may still rise, the market is now marked by more uncertainty. The sector in most danger of falling prices is the condo market, due to overbuilding – too many units in too short a time period.