Miami recently ranked among the highest performing markets, and tracked increases in the sales of homes and condos, but along with these sturdier sales comes potential for an unwelcome increase.
With strength, may come hikes in fees, for the condo market specifically, said The Miami Herald. With maintenance fees already set to be raised (by up to 16 percent annually in the next two years) in downtown Miami at the new Paramount Bay Tower, concern that this may trend has many worrying about what this may do for overall recovery in Florida.
“Since January 2010, buyers have acquired nearly 5,200 new condos in South Florida’s seven largest coastal markets of Greater Downtown Miami, South Beach, Sunny Isles Beach, Hollywood/Hallandale Beach, Downtown Fort Lauderdale and the Beach, Boca Raton/Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island. As of March 31, less than 6,800 units remained unsold out of a pool of nearly 49,000 created during the South Florida real estate boom dating back to 2003,” said the article, showcasing the potential impact that changes in condo fees could have.
With condo sales up and pushing designated thresholds, the developers of various condo projects are required to turn over the project to the condo association board, at which point they may decide to kick up the monthly maintenance fees in order to continue providing services and amenities previously subsidized by the developers.