Foreign buyers have been the #1 buyers of South Florida real estate for more than a decade. However, for the past few years, there was a tremendous decrease in Latin American buyer’s activity due to inflation and unstable local governments. However, according to the Profile of International Home Buyers Report of 2018, there was a rose of 23% of foreign purchase activity in 2018 compared to 2017. Out of those foreign buyers, Brazilians are in the top of the list.
Tag Archives: World news
For the past 10 years, Miami has been facing a speedy cultural development that hasn’t been fully followed by the rest of the World. That is why people improperly think that Miami is not a “serious business city” where you can actually go other than on vacation.
Miami is not only a “cool” vacationing location anymore. A strong cultural identity has been created and “developed” in the last decade. As a citizen of Miami, I have to say that I’ve noticed the whole path that Miamians have been following for the past decade. When I imagine what is Miami now, I have a large list of characteristics that top my head. Art, sports, entertainment, business, food, transportation, and those are just a few to mention. Nonetheless, that is not everyone’s opinion.
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.
It is not a secret that the down peak of the Miami Real Estate’s cycle is here. But even if it sounds like bad news, it is not at all!
Miami real estate has been following a sequence since the early industry boom in the 2000. This means that if we have arrived at the bottom line, it will have a fast bounce soon.
The whole industry has followed the same pattern, but the ultra-luxury houses’ had shown the most drastic impact.
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.
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 »
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.
Read the rest of this entry »