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MAY 1, 2006

KEEPING AN EYE ON THE CONDO MARKET

- Scotsman Guide


By Abraham Hidary

In recent years, thousands of condominiums have been built throughout the country. From New York to Texas to Florida, new submarkets
have emerged with a seemingly perpetual demand for units that range from tiny to spacious.

To determine where the market is headed, we first must look at how and why it got so hot in the first place. Real estate prices are a function of supply and demand. From third-quarter 2002 to fourth-quarter 2005, the largest influences on demand came from interest rates hitting historic lows.

 

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2006-May