Recently, the news has been talking about the real estate bubble burst.  Florida developers in Southwest Florida aren’t seeing a slowdown. 

A group of developers said that the market is still strong in South Florida.  During  the 2006 Developer Roundtable, Michael Saunders, CEP of Michael Saunders & Company said that there is more inventory in the area, and better for buyers, because they have more choice..

"We had none last year," Saunders explained. "We had unsustainable appreciation, and we had to catch our breath. What we have now is a sustainable and a very, very healthy market."

The Florida Gulf Coast seems to have fared better in the recent slowdown due to the economy, Saunders said.

The Florida market is better due to the strong economy and the baby boomer generation, which should sustain the Florida market.

Saunders isn’t alone.  Al Piazza, a developer in Miami, said he’s also developing in Sarasota and doesn’t see any ‘bursting bubble’ either.

"We saw investors disappear and the crowd control problem is over, but now we are selling to real buyers," Piazza said. "The job growth exceeds the ability to supply housing. The projected population growth also supports the market."

They do agree, however, that for sellers, they must refine their prices to appeal to more people.  Buyers need to chose and buy, before prices rise.

"It is a more measured inventory and a normalization compared to where we were just six months ago," Saunders said. "When we hear about people reducing prices because they won't sell, it is probably because they were too high in the first place. "It's time to get real."

Most buyers are looking for homes in the $300,000 to $700,000 range.

Saunders explained that hurricanes are not stopping people from buying.  Prices are increasing, in part, due to housing codes to meet structure guidelines.

Patricia Fuller
Real Estate Portal