What’s in Store For the U.S. Condo Market?
By John H. Resi
With the rapid urbanization of the 1990s and the optimism and opportunism of the millennium, condos began piercing the sky in major cities like Los Angeles, San Francisco, Miami and Las Vegas. The condo trend was new and exciting as buildings were offering amenities and features that made everyday condo-lifestyle feel like four-star hotel treatment.
This business of building condos became so profitable condos began popping up outside of downtown areas and into the suburbs. But this condo party came to an end as buyers trying to live outside of their means began buying luxury condos on meager salaries. The disillusioned condo market began to realize that their demand was much less than the buildings being supplied and disaster struck some of the country’s most lucrative condo markets.
Fort Lauderdale suffered the greatest losses as condos dropped thirty percent in value from just one year ago. Las Vegas, Miami and West Palm Beach experienced similar declines and prices continue to drop. Many speculate results like this foreshadow the end of the U.S. condo trend but evidence is to the contrary. While the condo market has oversupply issues, buildings and investors will likely abandon their projects and bring the supply closer to the condo market demand.
The novelty of condo living and its innovative services to residents like community pools, gyms, spas and maintenance create an irresistible appeal to urbanites around the U.S. The condo market has a long road to recovery; the big cities that were experiencing the most success in condo sales are now seeing the sharpest declines in condo values. However experts suggest that one of the most negatively impacted condo markets, South Florida, is likely to experience a more speedy recovery based on the foreign condo buyers market that remains strong.
For more information on this topic visit: http://www.magdasaltzman.com
Article Source: http://EzineArticles.com/?expert=John_H._Resi
