Miami condominiums


Construction Continues in Southern Florida Counties

Miami Condominiums

 In May of 2011, developers started building high-rise constructions in southern Miami at a fast pace. It began about three years ago with the area’s first pre-construction launch party. The latest condominium building to be completed is number 50 on the list, and it will be located within the Miami-Dade, Broward and Palm Beach coastal region.


Jorge Perez of the development firm the Related Group is largely responsible for the boom that southern Florida is experiencing. He got an early start by holding a ceremonial groundbreaking for the SLS Hotel & Residences Brickell on January 22. This ambitious undertaking will contain 52 floors of 453 condominium homes and 132 hotel suites and will be situated in Greater Miami.


Originally, there were other plans for the land where the hotel will stand. It was going to house the Infinity at Brickell II during the last phase of the boom/bust housing market. The difference in the Miami real estate climate can also be seen by the fact that developers recently completed construction of a condominium tower that contains 7,100 homes.


Developers do not plan to slow their building down this year. They have 186 projects that are either currently being constructed or are in the planning stage. This means that the area between Key Biscayne and Jupiter will have a total of 25,150 new units constructed within their borders this year. An analysis of records from the Clerk of the Court shows that the current boom is much bigger than the previous housing boom that began in 2003 and ended in 2007. At that time, only 243 towers that contained 49,000 units were constructed within Miami-Dade, Broward and Palm Beach counties.


The Related Group plans to participate in the current boom with 29 new condominium towers that will house 7,500 new units. The firm has already gotten started and has 10 projects in construction now. During the previous housing bust, the Related Group was involved in 24 condominium projects that contained 9,100 units.


The Related Group is not the only development company that is taking part in the current housing boom. Miami condo towers are also being constructed by Martin C. Margulies, Melo Group, Key International, Fortune Development and Dezer Development. Along with these veteran developers, there are also new ones who have never constructed properties in southern Florida before. They are building impressive condominium towers such as Oceana Bal Harbour in Bal Harbour and Regalia tower in Sunny Isles Beach.    


People have mentioned that the fact that there are new developers may be cause for concern because they are unfamiliar with how southern Florida’s housing market works. During the previous boom, lenders financed projects with 70 percent of the money needed to complete the buildings. Now, buyers are largely responsible for funding these ventures. This means that buyers must offer a 50 percent deposit rather than the 20 percent they offered previously. Even so, buyers are not shying away from purchasing at this time, so it looks as if the housing boom will continue.   


Now Is the Time to Buy in Southern Florida

Miami Condos

People are purchasing homes in southern Florida as if there were no tomorrow, and it’s reminiscent of how the housing market was faring in 2005. One difference is that current purchase prices aren’t quite as high as they were at that time. However, the number of single-family homes sold in Miami-Dade County this past July is higher than the number of houses sold in any month during the boom. At the moment, purchase prices are 35 percent lower than they were during the boom, but they have been going up.


Why are purchase prices continuing to increase? Right now, there is plenty of supply. At the same time, mortgage interest rates favor the buyer, but this isn’t expected to last much longer, so demand is also high.


According to the Miami Association of Realtors, people paid the median price of $180,000 for a Miami condo in July. Last year at that time, buyers only paid $135,000. The number of sales also increased in July. In Miami-Dade County, there were 1,538 closings when last year there were only 1,356. During that time, more Miami condos for sale were being listed. Last year, 7,451 units were listed, but 8,458 were listed this year. Also in July, realtors determined that their condominium supply would last six months, but in June, they only had enough properties to last 5.8 months. The six-month estimated supply is also higher than the amount of inventory from July of last year that was only estimated to last 5.6 months.


A six-month supply of Miami condominiums is highly advantageous because this signals that there are nearly as many homes for sale as there are buyers. If there are more buyers than sellers, then the sellers have the upper hand when it comes to setting prices. As things are today, sellers can set an asking price and receive it.


In Broward County, the supply is decreasing. With more buyers, sellers receive more of their asking prices than they have in the recent past. Furthermore, the inventory isn’t remaining on the market for as long as it had been. These actions taken together cause purchase prices to steadily increase.


An example of the above trend is what happened in Davie. Coldwell Banker real estate agent Bette Abrams listed a three-bedroom house with two bathrooms on a Friday with an asking price of $239,000. She only had to wait two days to receive an offer that was a little more than the listed price.


According to Abrams, there is definitely interest in Miami homes for sale, but there is just one little problem. Abrams has been unable to close some of her sales because the appraisals were much too low. This appears to be the main obstacle to Miami homes sales right now.    


The president of EWM Realty International Ron Shuffield stated that Miami-Dade condo sales increased because sellers were waiting for an opportune time to place their properties on the market, and now is that time.


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