Stix ‘n Brix

One of the hottest trends in Florida real estate is condo conversions. Apartment complex owners have been taking advantage of elevated real estate prices by converting the units to condominium ownership.

Condo conversions can create more affordable housing when compared with the price of traditional single-family homes, but they also attract speculators whose interest can, while demand is strong, drive prices higher by flipping their units for a fast profit. But inexperienced investors, often late to the market, can get caught. With so many condos for sale, prices level off or even decline. The oversupply also affects rents, so that those same speculators can’t afford to wait out the oversupply because rental income doesn’t cover mortgage payments, taxes, insurance, and association fees.

A Tampa Bay Tribune article describes the current market for condos there.