A Florida condo market is booming, according to data released Wednesday, as the Sunshine Coast’s condo buyers flock to new and renovated condominium buildings and the industry’s largest condominium owners brace for more demand as the housing market recovers from a recession-battered economy.
The U.S. condo market has been on a tear since the end of the Great Recession in 2008, and sales jumped more than 70% in the last six months to more than 1,400, according the California-based Real Estate Board of Greater Los Angeles.
The increase was driven by pent-up demand for luxury condos that had been priced out of the market.
In California, the condo market was in the midst of a massive boom in sales that began in the late 1990s, said Steve Stauffer, senior vice president of research for Real Estate Solutions, a research firm in Beverly Hills.
That boom gave rise to a surge in prices for luxury condominium properties, which soared in the years that followed, he said.
In recent months, condo buyers have flooded into the area.
In the first quarter of 2018, condo sales increased 9.4% to a record 3,400 units, according data compiled by the Realtors Association, a trade group for real estate agents.
The association attributed that surge to a wave of luxury condo construction.
In September, the industry experienced its largest single-day sales surge since the recession, with condos going for a record $4,965,000.
In September, sales in the first three months of 2018 topped 1.6 million units, an increase of $6.9 million over the same period last year.
The industry saw a surge of 2,000 units for the first time since early last year, according a Real Estate Boards data report.
The market is also starting to see a resurgence of existing units, and condos are on pace to hit their highest number of sales in a decade, Stauff said.
That would be a good sign for the industry, which has been battered by the recession.
The market has recovered from a severe housing market downturn that peaked in 2008 and is now recovering from the Great Depression.
In the past year, sales of condos have continued to increase, with a record 2,300 units sold last month, a 12.4-percent increase from a year ago, according Realtor.com.
The latest figures also show that the industry has seen a 20-percent jump in sales of apartments, an industry-record high, the report showed.
The condos are an integral part of the Sunshine Coasts economy, with the condominium market accounting for more than 60% of the region’s economic activity.
The condominium industry is a vital part of a growing number of condominium developments, with more than $1 billion in sales in 2017, up 15% from 2016.
In addition to the rise in condos, the region also saw a 3.7% jump in the number of condo units built in the past six months, the data showed.
It is the fastest pace of growth in the industry in five years.
The number of condos in the market is expected to rise by more than 40,000 over the next six months.
While the Sunshine is seeing record sales, other condo markets around the country are seeing stronger sales.
In addition to Florida, the national condo market recorded strong sales in Utah, and the Utah condominium sales are up 12.9% over the past three months, according Real Estate Data Group, a market research firm based in Salt Lake City.
The condo boom is helping to drive the resurgence of the housing markets, which have been in a state of near-collapse since the depths of the recession and the Great Fire of 2008.
The national condo sales have risen by 20% over a six-month period, and Utah condo sales rose 17.3% from July through September.
Sales in the U.K. are also growing, with sales at the number-one-ranked condominium in June, a new record, surpassing the sales of the previous year.