Real Estate, including homes, offices, and commercial premises is one of Miami-Dade’s most dynamic industries – in fact it comprises a vital part of the county’s economy.
The latest edition of the Miami-Dade County Analysis of Current Trends, published in 2016, indicates that the region’s economy is strongly related to Latin America and that the downfall of one of these will affect the other.
The sale of condo-townhouses fell by 7.2 percent, however, the average price did not fall but rose by 7.1 percent. The average number of residential units allowed in a year exceeds 10 thousand units. By 2015 total sales in the county reached $79.5 billion, a downfall of 8.5 percent.
This context of housing in Miami-Dade, helps to see the magnitude of a gigantic market that, for the common citizen, reduces to specific decisions: Buy, rent, where, when, with whom?
The Zone Matters
The Miami-Dade 2017 Real Estate Survey, conducted by the polling firm Bendixen & Amandi International and the Miami Herald, in which they interviewed one hundred of the area’s most influential brokers, realtors and real estate analysts, serves as a source. They are the ones to capture the insights into the county-wide market and can give the most pertinent recommendations. Forty percent (40 percent of these are dedicated to the mid-range market.
• Canada joins the countries with the highest real estate investment in Miami-Dade County. The rest are Latin American countries such as Brazil, Argentina, Colombia and Venezuela.
• The most desired / valued areas of the County and the least are, respectively, Miami Beach and Homestead.
• This is the third year the Miami Herald and Bendixen & Amandi have partnered on the survey.
• “Trendy neighborhoods come and go, but property values are what truly determine a worthy investment,” says one respondent.
• While Miami Beach is Miami-Dade’s most popular area, Coral Gables is preferred for single-family home.
• Even though Miami Beach is the most valued area, it is also the second area where respondents would avoid buying. The first is Brickell. It may be due, in the first case, to the problem of frequent flooding due to the low level of the land with respect to the sea and the bay and the second because of its growing congestion.
• The two most valued areas after Miami Beach are, in turn, Brickell and Wynwood.
• Regarding the crucial question of whether to sell/buy or rent (according to which side of the equation one is), at this point the 45 percent response was “buy;” 29 percent said to sell; and 25 percent answered both.
• So, “70 percent of industry experts believe it’s time to own, while 19 percent said renting is best.”
• Concerning the public’s interest, 70 percent stated “they are seeing a shift in the public’s interest in buying vs. renting: 59 percent responded that more people are interested in buying, while 41 percent felt people are looking to rent.
• Excess inventory may be a factor that, by lowering the price, favors buyers. 55 percent of respondents said that “the current market is high, and a majority (38 percent) thinks the value of that inventory has not changed, neither for good nor for bad.”
• Many respondents believe excess inventory makes supply in market last six months or more without being sold or rented. “When asked to rate Miami-Dade’s affordability on a scale of one to 10, the combined average of respondents was 4.6 — and some believe it should be even lower.”
And in Doral?
We asked one of the most active real estate brokers in Doral, who for obvious reasons asked to remain anonymous, for a qualified opinion.
This was said:
• In Doral, prices correspond to a population with an average income above $70,000 per year. The average sales price is around $283,000, but obviously, as the city “fills up” with new residents and this is balanced with the construction of new communities, the price fluctuates seasonally. For example, in December 2016 the average price reached $350 thousand.
• The price per square foot is approximately $190, from almost $194 in October last year, the highest point in the last 12-month period.
• Doral has 62 percent of homes owned by its residents, so we could say that it is a city of owners.
• The average monthly income is $2,550, not exactly the most economical county but certainly one that tends to go down when the inventory does not move as much, as is happening now. This summer has been hard for sellers or for those who rent.
• The best condominiums to buy or rent are those of Codina or those of Lennar, for the quality of construction and the financing options. I myself live in one of Lennar and have always been very satisfied.
• In Midtown Doral, Building 1, for example, a 2-bedroom/2-bath, 1,199-square-foot apartment can be purchased for $372,990. One of 3 bedrooms/3.5 baths and 1,691 square feet for $475,990. Here we see the range of space/money.