As we head into the traditionally slower “dog days” of summer, it appears no one told the local real estate market. Sales are setting record numbers, and the available inventory of existing properties for sale is experiencing a sharp decline. Several area indicators all point to significant growth patterns as sales and average sales prices are climbing steadily.
In May, for the first time in four years, Miami-Dade tax roll property values had shown an increase. Bal Harbour saw a leap of $172,000,000, due to the re-evaluation of some of the condominiums there, plus the addition of the new St. Regis project.
I’m Aleksandra Marzec, a Broker- Associate at the Miami Beach Office of Coldwell Banker Residential Real Estate, and I see the upsurge in activity across the board. Many high-end properties – both homes and condos – are being purchased in all-cash transactions. From the Beach to Brickell, brokers are seeing a huge increase in traffic and contracts.
INTERNATIONAL INVESTMENT A HUGE PIECE OF THE PUZZLE
Last week, the Florida Association of REALTORS® reported in their Profile of International Home Buyers in Florida 2012 that almost 1 out of 5 sales transactions in Florida involved a buyer from outside the United States. The study covered the 12- month period ending in June 2012. Research also indicated that of those transactions, nearly 82% were cash deals, and that the median price paid for a Florida property by an international buyer was $194,700, compared to the overall Florida median price of $125,100. Condominiums accounted for 45% of residential purchases by foreign buyers, 36% single-family homes 10% were townhomes. Canadians continue to be the most active in the Florida market, with Brazil and Venezuela showing a marked increase. 49% of all buyers from Brazil selected Miami Dade County properties.
Another recent study conducted by Focus Real Estate Advisors and Goodkin Consulting, showed a 24% sales increase for the first half of 2012 in downtown Miami condominium residences, and a 9.1% increase in the average sales price. Their research, conducted for the Miami Downtown Development Authority, reports that sales data “reflects a strong demand for the limited remaining inventory of new units in major buildings”. The number of available condo units downtown declined more than 30% from the same period a year ago.
PLANNED NEW PROJECTS SHOWS HUGE GAIN
Additionally, developers and builders are deciding that now is the time to take action. Contracts for planned future construction rose a dramatic 46% year-to-date over the same period of 2011, according to a study by McGraw-Hill Construction.
These are measurable indicators that the bottom has indeed come and gone, and people are becoming much more serious about getting into the South Florida real estate market. I have a steady stream of interested buyers calling me, ready to act. I have had listings that sold within 60 days, and many REALTORS® are receiving multiple offers on a property, oftentimes exceeding the asking price.
If you have been contemplating a move anywhere in the Miami Beach area, now could be an excellent time. Through the right research and up-to-date market trend statistics, you can discover the ideal residential opportunity, and make an informed decision.