Seeing Double – When A Bad Real Estate Market Is Still Good Market

The worse may be here now, but just like in older times, this too shall pass.Condominium sales in Miami dropped sharply, but the real picture depends on whose vantage point it is viewed from. It is often said that a person’s misfortune is somebody else’s gain. As investors lament on how bad real estate market has become these past few months, Miami’s airport remains vibrant with the comings and goings of home buyers who believe that the pot of gold sits right on the same spot where others lost theirs.Bargains are everywhere and for an investor who has a longer purse string; he could smell the sweet scent of victory miles away. Second home buyers have a plethora of vacation or retirement homes to choose from, as well as investment properties to sit on a few months until the cloud of doom over real estate market clears away. Experts however do not see yet the silver lining; they, in fact, believe that the worse is yet to come.But investors remain upbeat over the fortune that they will amass in the event that the situation reverses itself, as it always does. In not so distant past, the real estate market also experienced the crunch, but it rebounded easily; there is no reason it won’t be able to do the same now.Condominium prices in Florida are experiencing a shard dive at 35-40%; in Miami-Dade County, far worse. But Florida is a hotspot for a lot of other reasons; it remains as one of the top picks among tourist destinations in the world. This keeps the buoyed up feeling among investors who believe that despite the risk of a slow turn-around, the future still looks brighter if they purchase now when the market is down. The feeling of “making money out of other people’s misfortune” may not sit well on the conscience for a while however it still remains a business move too hot to miss.Miami, in particular, has always been a hotspot among tourists and real estate investors, not just for its beaches. In previous years, Miami seemed to be a Mecca of investment properties; all throughout Miami, the real estate fever was raging like a bull. Condominiums rose up to the skyline like a flight of birds. Supply met demand squarely on its face. Today, it’s a 4:1 ratio – that’s 4 condominiums up for sale, with just one taker.This is the apparent basis of doomsayers declaring an ever sharper downturn in prices in the coming months. When supply outlasts demand in four-folds, prices can take an even sharper dive, and the market an ever harder climb. Buyers who are propelled by greed to snatch hot bargains at a time the market is experiencing one of its temporary defeats may not have the last laugh.But for now that worst-case scenario remains inconceivable in the minds of investors who smelled money as soon as their plane touched ground at Miami airport. The state is a haven of opportunity and grandeur. It is a place where most people can have their cake of the best life – and eat it, too. This is the reason why despite the downturn, real estate market in Miami and in Florida in general will always bounce back. And when that happens, those who are making a killing on the cash registers now will surely have a field day when the market comes full circle.

This entry was posted in Real Estate and tagged , , , , , , , , , , , . Bookmark the permalink.