The Positive and the Negative of the Miami Real Estate Market

16
Nov

St Regis residences condo Bal Harbour

 

So many people seek to purchase Miami real estate from every part of the world because this city has Miami condos for sale that suit the tastes and needs of all types. The city is unique in its ability to be all things to all people, including those who are looking for an exotic vacation destination. Located on the beach off the coast of southern Florida, the area also accommodates a vibrant international business community where people from all over the world take part in commerce, the financial sector and trade. One must not forget that Miami has a rich cultural history where the media, arts and entertainment meet.

Upon arriving in the city, it’s obvious that it offers an assorted array of different real estate options, but people still need to keep up with anything new that Miami real estate introduces next. Continue reading to learn more about how Miami’s real estate market fared during the first half of this year.

Two Very Different Sides of the Same Coin

This city’s real estate market resembles a coin. On one side people will find that a great deal of cash was infused into the market, and these purchases helped developers begin to create new construction projects. With all of this money changing hands, property values began to increase. The coin also has another side that is reminiscent of the foreclosure troubles that the housing market is having in the rest of the country; this city had a large number of homes fall victim to foreclosure this year.

The Positive Side

In June of this year, pending sales for single-family houses and Miami condos for sale were up by 22 percent over pending sales from the same month of last year. The good news continues because positive numbers were not just recorded for pending sales. Single-family houses and condominiums have increased in price for seven months in a row, and this means that the market appears to be growing at a steady rate.

Specifically, the median price for condominiums in the Miami area is $160,000, and this is a 34 percent increase over the price registered in 2011. Single-family homes also saw a price increase to $194,250, and this is five percent higher than the prices for similar homes in June of 2011. As median prices and actual prices are not the same, keep in mind that the actual prices may be very different from the numbers printed above.

As was mentioned above, the real estate market became flooded with money as many people made cash transactions; a full 65 percent of real estate transactions that closed in June of 2012 ended with cash payment. 46 percent of single-family homes and 77 percent of condominiums were closed as people paid cash for these purchases.

The Negative Side

It’s true that greater numbers of people are purchasing real estate in Miami, but it’s also true that foreclosures continue to be a problem. More foreclosures occur in this city than in any other part of Florida. Currently, there are 3,260 properties with foreclosure filings against them.

The situation is not the greatest, but June 2012 had fewer new foreclosure filings than in any other month.

To learn more about the real estate market in Miami, consult with a professional real estate agent.

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