Is it the right time to invest in Real estate in Miami?

Miami Real Estate is becoming a buyer’s Market

Of the top 10 residential sales in South Florida, all of which were single-family homes, 7 (including the top 3 spots) were in Palm Beach County.  The remaining 3 were in Miami-Dade, cutting out Broward altogether.   The winner was 1695 North Ocean Way in Palm Beach that sold for $43.7 million.  The spec mansion was originally listed at $55 million in January and sold in March to hedge funder, Kenneth G. Tropin, for a significant reduction.

Many luxury listings are now selling for a fraction of their original listing price.  With a large inventory, including new construction, sellers are being forced to be realistic in their pricing and a buyer’s market is emerging, especially in the condo sector.  For instance, on Miami Beach the number of days a luxury condo spent on the market has moved from 62 to 171 in the last year.

Many factors have contributed to the leveling off of the market.  Foreign currencies continued to decline next to the dollar, the Zika scare, lots of media about sea level rise and finally, the election. But, overall, prices have actually increased.  In fact, prices for the mid-market sector saw record growth rocketing 27% over last year. Don’t forget that a thousand people a day move to Florida.  In Miami-Dade, the median price for a single-family home rose to $305,000 up 9.5% and condos rose 1.3% to $210,000. Prices for single family homes have risen for 61 consecutive months.

Investors in Miami

Who’s Buying? First Venezuelans

Apparently, more foreigners from a more wide diversity of countries purchased more residential real estate in 2016 than ever before.  More than half of the international sales in the state of Florida happened in the tri-county, Palm Beach, Broward, Miami-Dade area totaling $6.2 billion in residential sales for 2016.  80% purchased in Miami-Dade.

Top countries in order of investment in South Florida are Venezuela, Argentina, Brazil, Colombia, Canada, Mexico, France and Peru.  In Palm Beach and Martin counties, Canada topped the list and according to a report by the Miami Association of Realtors, Canadians were the top international consumers using their property search portal miamire.com.  In fact, South Florida was the most searched U.S. market for international consumers, while Los Angeles ranked second and New York placed fourth. According to realtor.com, the city of Miami has ranked number one in ten of the last eleven months.

Pre construction Projects

Many buyers turn themselves toward a long term position with a limited risk by taking options in future construction and considers that is an excellent investment opportunity.

Top 20 Reasons to Visit & Buy in Miami

  1. Affordable Real Estate – The local market offers record affordability, amenities, & seller incentives; 50% more affordable in the last five years; weak U.S. dollar gives greater discounts for foreign buyers
  2. Top Market for Int’l Buyers – Florida is the top state in the U.S. & Miami is the top market for int’l buyers; & is expected to outperform other U.S. markets long into the future
  3. Enviable Weather – The only major “subtropical” city in continental U.S.; average temp. 75 ºF / 23 ºC
  4. Beautiful Beaches – Greater Miami has 84 miles of Atlantic Ocean coastline & 67 square miles of inland waterways & more than 15 miles of world-famous beaches
  5. Water Sports & Activities – Enjoy snorkeling, sailing, boating, kayaking, swimming, diving & other water sports all year around
  6. Exciting Lifestyle for All – young adults, families, baby boomers, retirees, celebrities, & visitors – museums, performing arts venues, art galleries, professional sports, & amazing places to shop
  7. Fabulous Nightlife – Ocean Drive & more – top restaurants, night clubs, bars, world famous hotspots
  8. Restaurants – In Miami you can savor worldwide cuisine unlike in any other city in the U.S.
  9. Entertainment Industry – Major fashion center, top modeling agencies in the world, Fashion Week & more than 2,400 motion picture & video businesses
  10. Commercial & Investment Real Estate – Vacancy rates for all commercial sectors in Miami are below the national average; retail & multi-family are outperforming most major markets in the U.S
  11. “Gateway to the Americas” – Strategic location between Latin America & Europe; “Capital of the Americas” – perfect for business or pleasure
  12. The Most Int’l City in the U. S. – nearly 50% of population is foreign born & speak over 100 languages
  13. Global Business Center – for business, finance, commerce, media, entertainment, arts & international trade; no state income tax; home to nearly 1,200 multinational companies from 56 nations; more than 100 international consulates, trade offices & bi-national chambers of commerce
  14. Hotels – ranks fifth in US in occupancy after New York, Oahu Island, San Francisco, & Boston
  15. Top Tourist Destination – 12.6 million overnight guests – with 6 million of them int’l visitors
  16. World Aviation Hub – 3rd in the U.S. with 33.5 million passengers a year; Over 80 airlines to 120 destinations – top freight airport in the U.S. with 1.8 million tons – $19 billion in business revenue/year
  17. Port of Miami – “Cruise Capital of the World” with more than 4 million passengers a year; Also serves 240 seaports; 9 million tons of sea cargo; top markets: China, Italy, Hong Kong, Honduras & Brazil
  18. Educational Institutions – 4th largest U. S. school district; 5 colleges & universities; 3 law schools
  19. Hospitals – 33 hospitals; Jackson Memorial is one of the top 25 hospitals in the U. S. & Miami Children’s Hospital is rated the top pediatric hospital in the country
  20. Top Rankings
    • Miami has the largest concentration of international banks in the U.S.
    • Miami’s skyline ranks third in the U.S. behind New York City & Chicago & 18th in the world (Almanac of Architecture & Design.)
    • Miami is the only major city in the United States bordered by two national parks, Everglades National Park on the West, & Biscayne National Park on the East.

1 Comment.

Guide for Buyers in Miami | Miami Real Estate
August 26, 2017 at 5:19 pm

[…] Is it the right time to invest in Real estate in Miami? […]

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