For those who may still have doubts as to whether the real estate market has reached the bottom and is beginning a comeback, there are new reports that back up those claims. According to Realtor.com, Miami is the nation’s number one city currently experiencing an impressive turnaround, as the inventory of existing properties for sale dwindles and prices are beginning to rise. Savvy buyers are seeing real opportunity here, and are either purchasing real estate for future investment or buying a home or condominium for their personal residence.
Realtor.com’s Top 10 Turnaround Town Report, which is based on third quarter 2011 sales figures, indicates that six Florida markets – Miami, Orlando, Fort Myers-Cape Coral, Fort Lauderdale, Sarasota-Bradenton, and Lakeland-Winter Haven – are leading the country in positive market growth. These markets have shown positive median price appreciation, as well as reductions in inventory counts, when compared to the same period of the prior year. One reason is the dramatic increase in foreign investment in Florida real estate, as noted by Miami Beach REALTOR® . In 2007, 10% of those purchasing a Florida home or condominium were from outside the US, and in 2011 that number grew to 31%”. We are a true global destination for those seeking the most attractive prices in years, and I see no end to that trend in the near future.
If you are considering the purchase of a property in Miami-Dade County – either as an investment or your primary residence – you may want to consider acting soon. The dramatic reduction in the number of available properties on the market – from 17,897 one year ago to 11,878 as of April of this year – is causing multiple offers reminiscent of the robust market activity of 2003. Condos have seen a 30% increase in pricing from a year ago, and single-family home prices are up 8.2%. And those who may have been waiting out the market to see what happens are responding – The Miami Association of REALTORS® reports that compared to a year ago, condominium sales have increased an impressive 79%.
We are seeing a definite increase in activity from not only people outside the United States – most notably Canada, Brazil, Russia and China – but also from those living here who feel now is the time to make their move up to a new home or condo. And the vast majority of our transactions – nearly 75% – are all cash deals. The foreign investors are back in a big way, and they realize the attractive opportunities represented by the current prices here.
Further indications of these upward market trends can be found in pricing per square foot, and the number of days a property remains on the market as compared to the same period a year ago. In zip codes 33139, 33140 and 33141, the average price per square foot of all properties sold in April 2011 was $466.00, and in April of this year that number was $529.00. In April 2011, the average days on the market for properties in those zip codes were 136, which dropped to 109 in April 2012. People are becoming more comfortable getting back into ownership positions as they continue to be confident about the stability of the market.
It looks like the heat of the summer months will continue to bring increased activity in the Miami-Dade real estate market. Whether it’s a small, winter getaway condo or an ultra-luxury mansion on Indian Creek Island, people continue to realize the allure of living the good life in Miami Beach.