From Boca Raton and Palm Beach County south to Broward County and even up the coast, the residential and commercial real estate recovery is in full swing. It’s something one real estate analyst called “a complete transformation.” What does this mean to home buyers, land owners and developers and landlords of commercial, warehouse and office space? It should mean market stability for the foreseeable future.

The bubble that burst beginning in 2007 and dragged the entire residential housing market into a tailspin is a fading memory in most areas. Gone are the phantom-approval, low-money-down and interest-only mortgages that landed un- or under-qualified homebuyers in overpriced homes and mortgage foreclosures – and landed the market in the deepest recession in generations.

Now, prices are rising for existing and new homes, as demand grows from well-qualified buyers. Most banks are diligent – even excessively so – in their qualification standards. This should protect the market from a follow-up bubble, remarked Brad Hunter, chief economist with surveyor Metrostudy in a recent Sun-Sentinel interview.

“It is going to be a strong year for South Florida’s housing market, with more demand for homes, more population growth, more household formation, and a lot more construction,” Hunter told Danburg Properties of Boca Raton. “Home prices will be up at double-digit rates – 10% or more – in the most popular neighborhoods.”

The trend is opening new markets. Some people who took on roommates or returned home to live with their parents or relatives are ready to buy. Those who hung tight in smaller homes before or during the recession are ready to move up to larger homes.

Rising, too, are prices for vacant land that developers of both residential and commercial, office and warehouse space will need to continue the recovery and market expansion. The recent Case-Shiller index seemed to confirm that home prices are continuing to strengthen.

People have felt the recovery – and the desire to buy or invest now.

“A complete transformation has occurred,” Hunter told the Sun-Sentinel. “Two years ago, buyers were holding back because prices were still falling, and now there is urgency to buy.”

We’ve seen that in Boca Raton’s commercial, office and warehouse markets, too. Companies are growing, and out-of-town companies and their brokers are scouting for suitable expansion or relocation properties.

In fact, growth in these markets highlights the need for local and suitable housing options. Some markets – like Martin, St. Lucie and Indian River counties – will lose out on some of the growth opportunities and robust metro recovery because their housing base is removed from South Florida’s bustling business sectors.

One such option is the residential development planned for Boca Raton’s Northwest Sector. The luxury garden apartments promise affordable rental housing for high-paid corporate employees who work at area companies.
Between rentals that require credit validation but no mortgage applications, more stringent mortgage lending requirements, and less speculative buying, South Florida should enjoy a more stable market.