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30 | FLORIDA HOMES MAGAZINE Breaking ground T e planning and development offices in Florida are humming again, with new proposals practically arriving daily from contractors and developers around the state. e construction flurr y began in 2011 on the east coast in Miami. Since that time, 50 new condominium towers have begun construction, sprink ling the Miami coastline with cranes. e new construction boom is not relegated to the east coast, dozens of vertical resi- dential developments and new home communities are breaking ground on the west coast as well. Real estate booms are not a new trend in Florida. e self-propelling cycle of boom and bust has occurred many times in the past centur y, dating back to the early construction boom of the 1920's. While downward sales trends occurred in previous cycles, the Great Bust of 2008 resulted in unprecedented loss, thereby changing the rules for ever yone. e wildly speculative days of 2003- 2007 will likely never come again. Low down payment requirements and high lender exposure are a thing of the past. Gabriele Charity, broker with Charity & Weiss obser ves, "ere is a funda- mental difference in the situation we had during the boom times, about a decade ago, and now. During the wildly speculative days back in 2004-2007 practically ever ybody with a pulse was able to obtain a loan. 100% financing was common, which is not practiced anymore. When buyers have lile money invested, the option to " bail out" comes much more into play." Unlike the last construction boom when lenders ty pically financed up to 70 percent of the cost of building a condominium development, this time around lenders- many of whom barely sur vived the 2008 market crash- are resistant to fund any condominium construction. is new reality has forced developers to collect buyer deposits of 50 percent of the contract purchase price to pay for the con- struction. is level of financial commitment is dramatically differ- ent from the past boom when the norm was 20 percent buyer deposits. e new requirements will undoubtedly result in a more stable con- struction cycle and it certainly does not appear to have damp- ened developers' eagerness to build. New construction signs are popping up on seem- ingly ever y available corner in highly desirable neighborhoods. Downtown Renaissance Due to the scarcity of undeveloped waterfront land in Florida, developers are turning their aention to urban areas. is trend of necessity should prove an ideal match for many buyers of the current generation of retirees. Baby boomers in general enjoy beer health and are much more active than O L K ARIALBK.COM | 941.376.9346 AMYD@ADGCOMMUNITIES.COM ASCENTIA REALTY GROUP LICENSED REAL ESTATE BROKER NOW ACCEPTING RESERVATIONS. ORAL REPRESENTATIONS CANNOT BE RELIED UPON AS CORRECTLY STATING REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATIONS, MAKE REFERENCE TO THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A BUYER OR LESSEE. VUE, Sarasota By Jules Lewis Gibson Continued

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