Average sales prices are on the increase … for two very simple reasons. Fewer first-time home buyers are buying. More ‘move-up’ buyers are buying. Because move-up buyers tend to spend more, the properties they are buying are pricier, causing average home sales prices to rise.
Not only that, but with increasing numbers of foreclosure properties coming onto the market (many of them luxury properties) average sales prices are being driven upward of where they were even a year or two ago, in many areas including much of South Florida.
Does that mean that home values are going up? No, not necessarily. What it means is that (despite the national trend to downsize and live more conservatively) interest rates (below 5%) are for now at an all time low and buyers are still buying BIG …
52% of our buyers right now in Miami are cash buyers. International investors as well as vacation-home and second-home buyers are looking for opportunities to buy “smart”, and rightfully they have their hearts set on warm,resort destinations that are easily accessible from almost anywhere in the world. Miami certainly fits that bill, with plenty of coastal areas where there are opportunities to invest well. Favorable currency exchanges (euro-dollar and elsewhere) and widespread concern over lack of stability in the stock market, are pushing buyers with cash to invest it in real estate. Investors are also capitalizing on the currently low interest rates, and buying up second homes and condos in Miami.
If you or someone you know is looking to invest in real estate, and considering Miami, we certainly invite you to contact us here or by calling 001-305-793-1365.