{"id":447,"date":"2008-01-01T09:43:00","date_gmt":"2008-01-01T13:43:00","guid":{"rendered":"https:\/\/biznews.fiu.edu\/?p=447"},"modified":"2008-01-01T09:43:00","modified_gmt":"2008-01-01T13:43:00","slug":"to-buy-or-not-to-buy-to-sell-or-not-to-sell-assessing-south-floridas-real-estate-market","status":"publish","type":"post","link":"https:\/\/biznews.fiu.edu\/2008\/01\/to-buy-or-not-to-buy-to-sell-or-not-to-sell-assessing-south-floridas-real-estate-market\/","title":{"rendered":"To buy or not to buy? To sell or not to sell? Assessing South Florida\u2019s real estate market."},"content":{"rendered":"\n\n\n
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\nWilliam Hardin<\/strong><\/em><\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Buy. Sell. Sit tight for now. What signals the right move to make in today\u2019s South Florida real estate market?<\/p>\n

William Hardin<\/strong>, professor, Finance and Real Estate Department and director, real estate programs in the College of Business Administration, confirms that selling now does not make sense for most property owners.<\/p>\n

\u201cIn the residential market, we\u2019ve seen a substantial downturn in activity with a large increase in inventory,\u201d he said. \u201cBut we\u2019ve not yet seen significant changes in prices. Ultimately, a downward turn in pricing will drive what\u2019s needed to clear the market.\u201d<\/p>\n

Study looks at one facet of the market: condo conversions.<\/em><\/p>\n

In an article soon to be published in Real Estate Economics<\/em>, a top academic real estate journal, Hardin and Zhonghua Wu<\/strong>, assistant professor, Department of Finance and Real Estate, plus two other colleagues, examine the condominium conversion market.<\/p>\n\n\n\n
\"Miami<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u201cWe started with a simple question: can clienteles change market dynamics?\u201d Hardin said. \u201cIn the case of condo conversions\u2014when investors convert multi-unit apartments into condominiums\u2014we found that the answer is \u2018yes\u2019.\u201d<\/p>\n

Condo conversions soared in South Florida between 2004 and 2006. Initially, rental investors actively bid against condo converters for apartment buildings, but converters often out-bid them. Over the entire period, converters paid a premium of seven percent more than rental investors. At the peak of the conversion boom in the last half of 2005, converters paid seventeen percent more than rental investors. By early 2006, the premium declined to zero, and the end of 2006 saw few sales to condo converters. In the present market, apartment sales are based on income rather than on conversion.<\/p>\n

\u201cThe competition between converters and rental investors drove a sharp rise in per-unit apartment prices,\u201d Hardin said. \u201cCondo converters led all buyers to pay more, including those who intended to operate the properties as rentals.\u201d<\/p>\n

According to him, \u201cNo one is doing condo conversions now. It makes no economic sense. Really, it\u2019s indicative of what\u2019s happening today in the South Florida marketplace . . . what I call the \u2018local bubble\u2019 mindset\u2014and that bubble is bursting.\u201d<\/p>\n

Hardin believes that activity for both multi-unit and single-family properties won\u2019t rebound very quickly.<\/p>\n

\u201cI hope we\u2019ll see a pick up in sales next year,\u201d he said. \u201cBut first, unfortunately, prices need to drop. With proper pricing, properties will sell in today\u2019s market. However, the era of large short-term gains in value has ended.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

William Hardin Buy. Sell. Sit tight for now. What signals the right move to make in today\u2019s South Florida real estate market? William Hardin, professor, Finance and Real Estate Department and director, real estate programs in the College of Business Administration, confirms that selling now does not make sense for most property owners. \u201cIn the […]<\/p>\n","protected":false},"author":32,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[4],"tags":[2836,3806],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts\/447"}],"collection":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/comments?post=447"}],"version-history":[{"count":0,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/posts\/447\/revisions"}],"wp:attachment":[{"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/media?parent=447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/categories?post=447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/biznews.fiu.edu\/wp-json\/wp\/v2\/tags?post=447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}