market liquidity

There are a few factors that drive real estate prices higher in a normal market. At the top of the list are the performance of the local economy, job growth, and population growth.

Much has been written about the condo bubble in southern Florida, especially the dramatic rise and fall of the Miami condo market.

Between 2004 and 2006, condos were being snapped up by investors and quickly flipped for a profit long before buildings were completed.

As more and more investors joined the fun, condo units would often change hands like pork bellies -- and other dangerously volatile commodities -- many times before construction was complete.

For a couple of years, condo investments seemed to have no where to go but up.