According to state and regional real estate analysts, the factors that have increased the condominium boom over the past several years are easily explainable. Among these factors, America has historically begun with low-interest rates, aircraft-risk protection investments for foreign investors from South America, Asia, and Europe, as well as demand and speculation.
This is one of the leading factors leading to the rapid pace of condominium development and its “affordable” option, which is the conversion of rental apartments into condos. Generally, most foreign investments actually took the form of currency plays, which were based on the weak dollar value of the United States dollar.
How speculators create a higher demand for condos
Housing market observers noted that a certain segment of the housing market, which was generally based on pure imagination and known as “flipping”, was the main reason for condo development and the large demand for new projects, and quickly satisfied and lenders. Underwriting Requirements.
When it became clear that these speculative activities were based on buyers who wanted to speculate on pre-construction condos, and lenders needed condo development sorrow lenders to set the limits for this national activity, which took the form of an array of contractual provisions, ranging from prohibition to purchase- Bank contract assignment, first offer right Bong rejection, as well as profit sharing ultapaltira.
With local buyers closed, foreign buyers prefer the current condo market
While this is difficult to determine, it is clear that the combination of a weak US dollar, along with a fall in prices, has prompted foreign buyers to negotiate faster prices in the residential condo market. According to Miami-Dade real estate consultants and market analysts, buyers from countries such as England, Scandinavia, Ireland, and Russia are buying units both in investment and in recreation.
Housing market observers find that the currency exchange imbalance is exactly the opposite of what the greenback was at twice the British pound in the nineties. Prosperous high-income and high-income foreign buyers who have already moved from Miami-Dade County, or allegedly, to Miami-Dade County, are replacing buyers, analysts noted, which some today think of as high-value real estate. Either more cost-effective than low-cost real estate.
Why does condo frenzy cool off?
After the last three or four years of the condo boom, the pace of development in this market seems to have slowed down lately. What are the causes of the downturn in the condo market? Analysts say rising interest rates, especially artificially – affects lower initial rate teaser mortgages, as well as the impact of adjustable and variable rate mortgage products, which has hit some buyers heavily.
Depending on the regions of South America, some residential areas are better than other investment buyers, according to market watchers, who are looking for good and sound investments, which they can use personally. In addition to taking advantage of the weak dollar, buyers from countries like England and other European countries are negotiating condo bids, and some are also participating in auctions and foreclosure sales, which will help local buyers keep the market closed while waiting for the situation to settle down and normalize. Go back to the state.