MIAMI, FL -- The Downtown Fort Lauderdale and Beach condo
market could soon be faced with the prospect of a shortage of units - and
increasing prices - barring a reversal of the current climate of rising rents,
shrinking resale inventory, and few new condo developments being proposed,
according to a new report from CondoVultures.com.
Some six years after the South Florida real estate market
first crashed in 2007, the Downtown Fort Lauderdale condo market now has less
than six months of unit inventory available for resale despite a 29 percent
increase in the average resale price of a unit in the first quarter of 2013
compared to the same January through March period of 2012, according to data
compiled by the licensed Florida brokerage CVR Realty™.
Industry watchers contend six months of residential resale
inventory is ideal. Any less resale inventory is thought to contribute to a
seller's market and stronger prices while any more inventory leads to a buyer's
market and weaker prices.
"The Downtown Fort Lauderdale and Beach condo market is
rapidly approaching a crossroads," said Peter Zalewski, a principal with
the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC.
"The prospect
of rising prices - and potentially even bidding wars - for condo units in the
Downtown Fort Lauderdale and Beach market is possible given the current climate
of strengthening rental rates, dwindling inventory, and a minimal number of
newly proposed condo towers.
“ Given the lengthy lead time necessarily for new
construction, the Downtown Fort Lauderdale and Beach market could be at the
mercy of demanding sellers sooner than most people would probably think.
 |
| Peter Zalewski |
"The question going forward is, whether the more than
4,000 rental units proposed for the Downtown Fort Lauderdale and Beach market
will function as apartments or instead be converted into condominiums upon
completion of construction."
For a complete copy
of the company’s news release, please contact:
Condo Vultures® LLC
225 Midtown Building at
225 NE 34th St.,
Suite 209B,
Downtown Miami, Florida, 33137.
800-750-0517.
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