It is not a surprise that the Florida’s real estate market isn’t in its best shape today. The market has been facing different barriers that haven’t allowed it to grow as the some years before. In this week’s article I will explain some of the biggest problems that the industry is trying to bear.
1. Climate Change
We have all heard rumors saying that Miami is going to flood under water in a few years. Unfortunately, we have to say, somehow it is not false.
Whoever tells you that the real estate market is like a roller coaster ride, is obviously not referring to Miami! The Miami Association of Realtor and the Multiple Listing Service (MLS) system, had announced the third quarter (Q3) 2018 sales report for Miami’s real-estate. It seems that nothing can stop their winning streak!
For the 27th consecutive quarter, Miami’s houses, condos and single family homes sales surged. Not even Hurricane Irma was able to slowdown the real estate sales growth in Miami.
According to Miami Association of Realtors, the foreign investment in South Florida climbed up to $7.1 billion dollars in 2017. That is a significant increase of approximately 15% compared to 2016 where the number was only $6.2 billion dollars. Unsurprisingly, most of the foreign buyers are coming from South America. In fact, the political and economic crisis in the area are pushing the wealthy to park their money into a safer environment.
According to the MLS, the home sales year-over-year has fell in May for the Miami-Dade and Broward counties. This is probably due to the increase of median price in properties in these areas. Palm Beach, however, did make an exception with a slight plunge of price which means that their home sales actually increased. Surprisingly, the market which saw an increase of closed sales in April dipped this month.
There is a huge confusion whether the western Venetian island belongs to Miami or the Miami Beach. After all, the zip code seems to apply to Miami Beach but the city belongs to Miami. The western venetian island (which makes up San Marco and Biscayne Island) seems to leaning towards Miami Beach. In fact, the residents themselves are taking action in their own hands by holding petition and collecting signature door-to-door.
Downtown Miami has always been overshadowed by its more popular neighbors such as South Beach and Brickell. However, this neighborhood gem is actually one of the fastest growing city in Miami. What was once considered as a strict financial district is gaining huge population increase for families and young professionals. In fact, the population is at an all-time high with an estimated increase of 19% in the next 4 years. In response, the area could potentially have a higher demand for condo accommodation.
Millennials love fashion brand and the fashion brands are aware of this. This is probably why they are taking one step further by building condominiums associated to the brand. The trend can be widely seen especially in Miami where the Miami lifestyle is enviable to most people.
Condominiums associated with high fashion brands enjoy huge publicity and their clientele are established. In fact, they throw lavish party on the announcement of their project and even when they break ground. In this article, we will see a list of this high profile fashion brand condominiums that are taking Miami by storm:
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This is the best time to sell your home. The Miami real estate market is showing healthy sign of growth this year in terms of sales and prices. This is in contrast with the past two years where the number of properties sold increased but their value price decreased (see South Beach Report). According to the MLS, properties are selling rapidly this year and the sellers can now sell their property near the asking price. Read the rest of this entry »
Miami is synonymous with luxury. Over the past few years, we have seen the boom in luxurious condo constructions such as the Armani Residences, The Ritz-Carlton Sunny Isles, and The Aston Martin Residences. Let’s have a look at some numbers to feel the current market trend.
The trends we can see are that the condos take longer to sell and the sales volume have dropped. It took 54 days longer for a condo to be sold in 2017 than in 2016 in the South of Fifth neighborhood. The days needed to sell a unit in other neighborhoods such as Brickell and Fisher Island have also increased by more than 30%. Read the rest of this entry »
Miami is well known for its attractive real estate market and the Chinese has taken note of this. As of last year, the Chinese makes up the third largest group of buyer in Miami and the second in the U.S. There are several reasons why this is a growing trend. Read the rest of this entry »
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