Hundreds of new homes planned for South Florida

Builders are planning the construction of hundreds of new homes in Broward, and Palm-Beach. The reason behind it is the confidence that has come from recent homes sales and activity in the housing market.

Many home builders have decided that this is a prime time to get back into building new homes. Some home builders have even reported an increase of up to 14% in homes sales as compared to the previous year.

While new home starts are not comparable to those in 2005, signs of growth are present. Nationally there are 183,000 new homes for sale, a record low.

Builders have started making products for buyers who don’t want to bother with short sales and foreclosures. A lot of the resale homes are often in poor condition and what’s more the sales can take months to complete.

As people turn away from resale homes more new homes must be built to accomodate buyers.

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Bulk for South Florida

Investment groups completed two more Broward County bulk condo deals in the last two weeks, according to condovultures.com.

• •Friday, February 11th, 2011- Sonata Grand LLC spent 9.7 million for 22 units at Sonata Beach Club in Pompano Beach.
• Last week, Village East Investment LLC paid $7.65 million for 68 units at Village East in Fort. Lauderdale.

The trend seems to be to break up the units bought and sell them to international buyers, typically paying cash. Investors anticipate selling the units at double the price once sold individually.

As of 2008, investment groups have completed 71 bulk deals in Palm Beach, Broward and Miami-Dade counties and these sales are likely to continue. Buying in bulk reduces the liability of investors, thanks to a bill passed last year.

The infusion of capital is positive news for the aforementioned counties and definitely helps to get things going for South Florida Housing.

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South Florida, Ground Zero?

According to TCPalm’s article: “Analyst: South Florida ‘ground zero for housing bust’", not all sectors of the housing market were similarly affected by the economy. While Broward and the Palm Beaches were hammered by declining home values, some sectors have managed to stay unaffected.

It has been determined that many of the upscale communities in the Palm Beach and Broward area have not seen a decline in home-value. Some of these sectors have even experienced bidding wars for properties.

While people think that houses should not be purchased, it is a safe assumption that upscale homes will maintain and instead increase in value.

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