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The noiseless real estate of Miami

The noiseless real estate of Miami

According to the public records compiled by Cranespotter, Miami’s real estate has suffered of a downshift that is just now starting to recover.

Out of 350 units over the $5 million dollars that are today on the market, only 6 units are sold per month. And out of this closed deals, 96% of them had to decrease their price for closing. However, the average percentage of reduction is only 5% under the listing price. Investors are just trying to get rid of their South Florida real estate assets.

Since 2011, we have witnessed in Miami of a lot of new condo constructions. Most of them are either put on hold or even canceled as there is a lot of supply for the demand at this moment. Developers are not anymore interested in constructions in luxury neighborhoods such as South Beach or Brickell. They now have a new playground. Any guess? well, for those who thought it was Downtown, bravo!

According to the brokerage Peter Zalewskis Condo Vuture Realty, this district offers the geographical advantages of most luxurious neighborhoods, with more affordable prices. Developers don’t want to stop investing in Miami, but they are forced to find new alternatives that attracts more public. Despite this effort, projects that already have started their sales, are now forced to freeze or to cancel.

What we can see here is a market re-balance. All these condos’ constructions cancellations are just a way for the market to correct itself.  The demand is low, and the supply is way to high, so a lot of developers won’t take the risk of investing much more money on a project that might not even arrive into the economic balance point.

Out of the constructions that have started since the beginning of this downshift (2011) in Miami, only 100 are now completed. More than 64% of the constructions are either proposed (81 units), under planning process (46 units) or they are still under construction (53 units).

We know this has happened before, there is a lot of quiet before a market boom! The real estate market in Miami is now in stand-by, but it is just the quiet rain before the rainbow to appear!

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Posted by on December 7, 2018 in News

 

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Condominium market in Florida

Condominium market in Florida

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.

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Posted by on June 22, 2018 in News

 

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The future of pre-constructions in Miami

The future of pre-constructions in Miami

Last year, we saw the drop of condo sales in almost all neighborhood except in the Downtown and South Beach area. In Brickell, the sales has dropped by an average of 5% while in Edgewater, it dropped by an average of 9%. This trend has been caused by the high inventory of luxury condos available for sale. In fact, there is currently a four years supply of luxury condos in the market.

This high inventory also contributes to a growing concern to real estate developers. There is a difficulty of selling new pre-construction units. Developers are postponing their projects in hope for a better market. Read the rest of this entry »

 
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Posted by on April 13, 2018 in News

 

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Is there a bubble in Canada’s real estate market? The boom or the bust?

In 2008, the housing crisis in the United States left many people in a state of panic. The housing market collapsed and prices dropped. It took 5 years for the market to recover (for example, a unit in Murano Grande was sold for only $1.85 million in 2012  whereas last year it was sold for $2.55 million, a 37% increase). Now, United States’ neighboring country might face the same situation.
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Posted by on August 24, 2017 in News

 

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Real estate: Trick or Treat?

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In a previous article, I told you we were in a seller’s market. But where are we heading? Even though there is still a lack of homes for sale, the mortgage rates are, slowly but surely, going up. As a consequence buyers could become scarcer. Here’s a look at four items to better understand the rebound of the housing market at a national level.

First of all, the real estate market shifted in a short amount of time. In a regular market, prices increase after the inventory of houses for sale shrinks. In this unusual recovery, things went the other way around. Without shrinkage of inventory, developers decided to increase prices. They actually even admitted they pushed prices too far. For instance, when you compare the new home orders year-over-year, the demand only increased 1% in August against 11% in July. Nowadays, purchasers are more thoughtful before investing in a condo.

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Posted by on October 7, 2013 in News

 

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