Miami Beach Realty

21
Dec

Miami Real Estate Picking Up

 

Boom and bust cycles are no stranger to the Miami real estate market. The current bust cycle is one of the worst in history, but judging from the recent statistics, it seems to have bottomed out. Two factors that appear to be driving the climb to stability and the desirability of South Florida real estate in the interest of foreign buyers and the spike of employment within the area. This is creating a market ripe for prime choices as discount pricing before the supply and demand equalizes.

South Florida real estate took a hard blow during the recent recession. High unemployment rates led to a cascade of problems within Miami's real estate market. During the same period, the rate of foreclosure increased shifting the balance of supply and demand for South Florida real estate. As the balance of supply and demand tilted, it created a reduction in the value of Miami real estate. Some real estate properties dropped in value by 50% or greater during this period of recession.

The boom and bust phenomenon, however, is not new to the area. Homes in South Florida have seen this cycle many times. Within real estate, it is what creates a buyer's market. As this buyer's market was created, it attracted the interest of international buyers. A buyer's market is any market that has low investment prices with the potential to see property values and equities increase as the market stabilizes. The idea of a buyer's market is to pay low and resell high once the economy has recovered enough to see the increase of property values occur.

International buyers are particularly interested in Miami real estate due to the value of the dollar compared to their currency. When the dollar has a lower value, it parallels to an increased value in foreign monies. Basically, it takes less of their currency to equal the value of our dollar. This allows foreign buyers the opportunity to purchase South Florida real estate at lower prices. Combined with the number of foreclosures on the market, which occurred due to the recession in the economy, and the lower value of the dollar, foreign investors are increasing within the area as prime Miami lands are a great value at the moment. Investors can expect a return on their investments that far exceeds expectations when the balance of demand and supply returns to a more stabilized condition.

International residents in South Florida often purchase homes for either permanent or seasonal use. Sales of Miami homes are often in the form of Miami luxury condo for this type of resident.

As unemployment swings from being extremely high within the area to more normal ranges, sales of Miami homes and homes in South Florida have increased. This is a good sign for the local economy as families are finding work went today within the state, and are therefore able to pay for homes.

As a measure of the increase in the Miami real estate market between this time in 2010 and now, Miami luxury condo sales have increased by a phenomenal 130 per cent. During that same period homes in South Florida increased by 50 per cent. A great deal of the demand for homes in South Florida is also driven by the lower property values incurred during the recession.

In terms of global economics, the US dollar will face another quantitative easing. In layman's terms, the dollar will be facing another drop in value which will increase the interest of international buyers within real estate markets. It also doesn't hurt that the real estate in question is located among the most desirable places to live within the state. The abundant supply ensures the economical status of the state will increase as investors purchase homes within Florida. It is expected that sales of Miami homes will increase during this time.

Investors often look for market that is bottomed out and is climbing on its way to recovery as this is the prime time to purchase new properties. As properties are purchased, inventory decreases creating a rise in property value. With the current status of Florida real estate, this is beginning to happen for Miami luxury condo options and sales of Miami homes.

21
Dec

Strong Condo Development Future for Miami

 

Interest is rising within Miami real estate among investors and residents as Miami land promises future growth and land development. Much of the land in the downtown area was previously earmarked for commercial towers, however, many of these land stretches are now in distress and are being converted to potential condo developments. According to the Miami Dade County records, investment groups have recently purchased 10 or more condo sites for a whopping $300 million. This bodes well for the Miami land plots as it demonstrates a stabilization within Miami real estate properties and land that was not apparent to investors prior to recent times.

Greater downtown Miami is an area that has seen some of the year's largest land deals. The waterfront Miami Herald $236 million alone in that deal. Coral station at Brickell Way sold for $14.8 million. The Brickell tennis club carried a price tag of $14 million. The fact that these properties represent only a small fraction of Miami land available has eyebrows raised and wallets open for a flood of investors and residents. The true potential for land within the Miami area has not yet been reached as can be seen from the numbers and profit current sales are reporting.

Not only has developer and investment interest increased through rental and lease activities of Miami condo, there's also been a rise in sales in new sales of Miami real estate. Miami condo development is producing large returns both as rentals and as new sales. Families can rent out condos used for vacation, creating the revenue to take increase spending within the nation's current economic slump. This increase in spending can be seen within Greater Downtown Miami area with booming business. This, in turn, creates an ambiance that cannot be beat when combined with ocean front properties and luxurious homes within the area.

In addition, Miami real estate has seen an increase in leasing options as many new buyers prefer to lease Miami condos for a period before buying the condo. Leasing offers a great condo to call home, and it generates cash flow through rental channels. The option to lease Miami condos also gives a buyer the try before you buy feeling. Although it may cost more in monthly payment, the option to lease Miami condos allows a renter to find just the right place. Renters and buyers who choose to lease Miami condos prior to settling on a condo they aren't sure of, open option up for a full purchase in the future.

One of the forces driving the trend among renters, investors, and home owners is the Miami condo land available for investment markets. The decline of inventory as Miami condo properties are bought up have investors going in new directions. Greater Downtown Miami offers that direction with many developers choosing to spruce up and update properties rather than build properties over fully functioning, but older ones. This helps Greater Downtown Miami hold onto its art deco days and charm without stifling the growth of tomorrow.

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