Real estate markets may be slowing
Florida real estate investors may be interested to learn that the growth in some of the country’s top real estate markets may be slowing. Sales at one high-rise residential structure in New York City are said to have plateaued, for example, and although it is reported that 70 percent of units have sold, not all of the sales have closed. As a result, some of the units are now being divided in hopes of attracting buyers who do not want to spend as much. Throughout the city, expensive apartments may take up to three months to sell.
Some experts say that the market in New York City is a harbinger of what will happen with other markets as well. New home sales rose in the West but not in any other regions. In the Northeast, the February 2016 drop in new home sales was 18 percent from the corresponding perion a year earlier .
Some signs point to a glut ahead in the New York market. Both residential and commercial properties are being constructed at a rapid rate with little evidence of a need for either. Around 20,000 hotel rooms are being added, but occupancy rates in hotels are dropping. All of this may be repeated in markets throughout the country.
Other things besides a volatile market can be threats to property owners as well. Banks have tightened their lending standards, leaving developers having to find alternative sources of financing. An attorney can often be of assistance to a developer in determining the appropriate was to look for funds.