It is no surprise that the real estate market in South Florida is booming. After the pandemic, people are flocking to take in the sunshine and looking to purchase vacation homes. Those who currently live in the state are looking for more room to spread out and are ready to invest in their own real estate.
In addition to homes that are already available, construction of new properties is also surging. According to one report, residential construction numbers in the area are up 36% in April compared to the same time period last year. This translates to a current residential construction investment of over $505 million in the Miami-Dade, Broward, and Palm Beach counties alone.
Is this just a one-month spike?
These numbers are more than just a short-term phenomenon. In addition to this surge in April, the numbers reported for the first quarter of 2021 were around $15.8 billion — reflecting the continued housing boom throughout the beginning of 2021 in the state.
What should I know before I buy a new construction property?
Buying a new build is exciting but can come with issues of its own. For example, even a new construction can come with title problems. One possible problem: a mechanic’s lien. A mechanic’s lien can result if the general contractor or developer failed to pay subcontractors. This can result in the subcontractor having a claim to the title.
There are two ways a prospective buyer can mitigate the risk of having to deal with this problem. First, a title search. Having a title search completed before finalizing the purchase can discover this problem. Once discovered, you can have enough time to find a resolution. The second option is title insurance. This provides protection in the event a contractor attempted to make a claim based on past work at a later date.