The home-sharing market around the world has been extremely affected by the COVID-19 situation. Flights getting canceled and people scared of getting infected or spreading the virus has created a huge wave of short term rental booking cancellations that have seriously affected Airbnb hosts. The real question is can the industry’s leader survive to this lockdown?
People’s concerns regarding the effect of the Coronavirus in the South Florida Real estate market keep rising, and more studies results keep arriving with more interesting facts. This time it has to do with the drop of the residential inventory in the past weeks.
According to one of these studies, which researched the number of new listings (condos and single-family homes) in the most populous metro areas in the US. from March 1st- April 5th compared to the same period last year, the Miami metro area showed a drop of 30.7% in new residential listings. In the ranking, Miami was classified sixth, which shows there was a major fall compared to the rest of the country.
It seems strange and unreal that real estate hasn’t shown a dramatic slow down in sales due to the Coronavirus crisis, but that is exactly the case for Miami-Dade County. Real estate hasn’t suffered as much as most of us thought it will. Pending contracts keep converting into closed sales and sales keep increasing month to month. With 465 closed sales of single-family homes in the first half of March and 557 closed condos, there was a 4.5% and 14.1% increase respectively compared to the first 2 weeks of February.
The renowned architects firm in charge of massive projects such as the 84-story Steinway Tower in Mid-manhattan New York, American Copper Buildings in Manhattan’s East River and 9 DeKalb Avenue in Brooklyn, is now coming to Brickell!
A 62-story high-end building will be designed by the renowned architects firm, SHoP Architects led by Michae; Stern. This tower will feature 200 hotel rooms, 1,000 luxury rental apartments, 200 micro condo units, 250,000 sqft office space, 1,700 parking spaces and 60,000 sqft of spa and common areas.
With an ideal location in the heart of Brickell, west of Downtown, this tower will be close to the underline, which is currently under construction and the Metrorail Station. This 752 feet tall tower is scheduled to be completed 36 months after the final city approval.
Last week there were some big residential deals that closed in Miami! Here are the top sales in the first week of February 2020!
1. 320 W Rivo Alto Dr in Miami Beach
Anyone would agree that trying to find a Miamian in Miami is getting harder every day. You may think it is only you, but actually, more foreigners and local refugees are flying down to Miami and are forcing locals to find new cities to establish.
About 58,000 Floridians are moving out of their hometowns to other states, while 94 outsiders are coming to Florida daily. This loss of Locals is mainly due to a non-stop increase in real estate prices and to tax law reforms.
Wynwood has been transforming from a tourist attraction to an actual innovative living area. With amazing business ideas, this neighborhood is now home of preconstruction of co-living apartment buildings with world-class shared amenities and service which has been extremely appealing to more than one public.
One of the main developments taking place in Wynwood right now is the $46 million /1.6-acre terrain purchase at 2431 NW Second Avenue in Miami. Developed by Property Markets Group (PMG) in partnership with Greybrook, this project will be an 8-story mixed-use development with retail spaces, hotel rooms, rooftop bar, restaurant, and over 220 rental apartments from which 30% will be co-living spaces where tenants will have the possibility of renting by room and have some world-class shared common areas. This project promises to be similar to X Miami, the 32-story Hotel & Residences in Downtown.
The New Federal Tax Law signed at the end of 2017 by president Trump has clearly created a new trend of Tax Refugees trying to escape the high taxes of northern cities, to the shiny and tax privileged Miami. The most affected ones are the wealthy property investors after the law reinforced a deduction for state and local property taxes at $10,000. However, this doesn’t mean that these buyers are in a rush for changing residency and moving out to Florida.
This story has been all over the news, with shocking headlines it might have been misinterpreted as a drastic and radical movement that was happening from one day to the other. Nevertheless, this is not precisely the reality.
Foreign buyers in the U.S. have dropped by half in 2019 compared to the previous two years. Only in 2019 compared to 2018 there was a decrease of -36% in residential real estate, foreigners only spent $78 billion in 2019 compared to $121 billion in 2018.
Fewer foreigners buying residential homes in the US has pushed a decrease in listing prices. With lots of inventory and no buyers to fill them up, the market has switched from a seller to a buyer’s market. It is shocking the magnitudes of the drop as we have reached the lowest level of foreign residential investment since 2013.
Another day and yet another new condo construction in Miami. The inventory of Miami Beach is about to increase with the tenacious construction of Park on Fifth. This 44-story luxury condo will be raised at 500 Alton Road with a welcoming location for visitors and residents of Miami Beach coming from the MacArthur Causeway.