NEW DEVELOPMENTS ARE BACK IN THE ONCE OVERSTOCKED SOUTH FLORIDA REAL-ESTATE MARKET.
By Adriana Faerman
If real estate history does repeat itself and economists are correct, 2012 was the new 2002 and this trend will continue into 2013.
Last year was “back to normal” for real estate and the first quarter of 2013 shows a similar trend with continued progress both in Miami-Dade and Broward counties.
In 2012, the total number of new developments rose to 72, popping across South Florida from Miami to Fort Lauderdale, with new projects coming in 2013.
Broward county overall showed inventory absorption with an 18% decrease in the number of properties for sale over the first quarter of 2012. Sales showed slight increase while prices rose on average 15.7%. In the Dania and Hollywood areas, we see that the most active segment of the market was the sale of non-waterfront homes with almost 1400 homes sold in2012. With most of the lowest price inventory already sold, the average and median price have started to climb.
Forest View Estates, one of the Brick-0 projects in the Stirling Road corridor in the areas of Dania and Hollywood, has experienced this increase in demand and the number of transactions has doubled compared to the same period last year. The developer is now starting construction of new custom luxury homes in this final phase to complete this exclusive gated community, with prices starting at $175 per square foot.
The Miami-Dade overall outlook is similar, with slight uptick in the number of sales, while price per square foot jumped 15.2%. In Bay Harbor Islands within the condo market, there has been evidence of acceleration in the first quarter of 2013. This exclusive island strategically located west of Bal Harbor, just minutes away from the beach, is showing strong signs of new real estate activity. After years of building moratorium, now Bay Harbor is positioning itself as one of the most desirable condo markets.
The Ivory Residences and Marinas is one of its most ambitious projects. With 41 residences, this contemporary project still maintains the laidback style of the island. With a great design offering superb architecture and several floor-plans to choose from, the Ivory Residences has already started taking reservations, with prices starting at $390 per square foot.
Although the majority of sales are still in cash, financing to well-qualified buyers is available from a variety of lenders.
The first quarter of 2013 has also experienced the return of the northeastern buyers as well as a strong demand from foreign buyers primarily from Brazil, Venezuela, Canada and Russia. Income tax changes, and political and economical reasons both in many states and abroad, have been the final impetus to clench that purchase decision in Florida, and South Florida in particular.
We offer these buyers our backyard either to have it as their second home or to claim their residence. Who can blame them?