FOREIGN BUYERS CONTINUE TO FUEL MARKET RECOVERY IN MIAMI
BY ROSSANA FRANCO & SANDRA RUB
Foreigners are back scooping up Miami Real Estate at record levels due to its inherent value versus other markets. The price pendulum had swung way too much to the left and the first ones to realize it have been foreigners. The political hardships in Venezuela and the booming economies in Mexico and Brazil have all contributed to the demand in assets across Florida.
Due to this economic boom and expansion, which has driven up Real Estate prices in that region, foreigners are looking at other countries to invest in and Miami is a natural first stop. Miami remains a top market for vacation, second-home buyers and newcomers due to its strategic location between Latin America and Europe, its amazing weather and its cultural diversity.
Activity has picked up as people realize that there are very few alternatives to invest in right now: bond yields are almost zero, the stock market is risky in the face of economic uncertainty, and the best defense against possible inflation is Real Estate.
Pending sales continue to indicate a strong momentum for the local Real Estate market. “Miami home sales set a new record in 2012, exceeding the previous record set in 2011 and even the height of the Real Estate boom in 2005”, according to members of the Miami association of realtors and the local Multiple Listing Service (MLS) system. Miami home prices rose again in December, marking 13 consecutive months of appreciation for both single-family homes and condominiums.
Statewide sales of existing single-family homes increased 15.8% in 2012 compared to 2011, and statewide condominium sales went up to 8.6% in 2012. These record sales have resulted in housing shortages. More new listings are needed to satisfy demand. This limited supply together with the increased demand is resulting in offers that are closer to the asking price as sellers offer fewer discounts.
Many new high-end buildings that will be ready in the next two years are being presold on the beach at record prices. Still, Miami remains more affordable than most US cities.
Our team has sold all of our listings at a record pace, mostly within two months of signing interested sellers. We continue to work hard at making sure we present our clients with the best possible homes and condos in the market. Once a property is sold, bought or leased, we also offer “turn key” options which can include construction, project management and interior design by a fully licensed and accredited team.
Please don’t hesitate to call us with all your Real Estate needs. You will get double the service and double the effort when searching for the finest high-end condos and homes in Miami and the beaches!