Even though prices keep on increasing in Miami, cash is still number one. Almost $1 billion of sales has been registered in March 2016 for residential units of single-family homes in Miami Dade. The median price went up by 7.7% as compared to the price for condominiums that dropped by 2.6%. Despite 5 years of record sales, Miami keeps on registering sales in the range of high price points.
Knowing that 50% of all transactions in Miami-Dade County are cash, it shows that home buyers are still very much invested in Miami real estate market.
However, current condominium resales have to compete with the active preconstruction market, hence a decline by 11.5% of sales because of the continuous inventory constantly adding up.
The total of the residential properties sold in Miami in March 2016 amounts to $996.5M. It is actually lower by 15.1% as compared to the $1.173B sold in March 2015.
A spike in the number of sales has been observed: single-family homes witnessed a 9.6% year-over-year rise while existing condos saw a 14% increase in sales knowing that it represents 31.9% of total Miami condo home sales. Investing in Miami real estate is still a way to strike bargains worldwide, knowing that prices in Hong-Kong, London and New-York are almost 5 times higher.
Note that Miami’s preconstruction market is way healthier than in the previous boom. Indeed, developers have a 50% cash deposit request which is higher than in any other State. It acts as a guarantee for buyers’ commitment and developers are not led anymore into overbuilding.
As a conclusion, demand is still high in Miami and the market keeps on recording great sales.
Have a look at beautiful and affordable condo under construction, Auberge.