Market Snapshot for Miami Real Estate:
Real estate markets tend to be cyclical … and it’s worth remembering that historically real estate has been solid – as a long term investment.
2010 was a buyer’s market. 2011 won’t be all that different according to what top real estate experts are predicting.
Between 2003-2005 real estate prices went up – literally every month – with real estate values climbing. Many homeowners were convinced that values would just continue to rise.
In Miami we had between 1-2 month’s worth of supply of available inventory back then. Hurricanes Wilma and Katrina had an impact on the local economy, and contributed toward pushing Miami in the direction of a recession.
As we moved into 2007 the real estate market began to solidify – somewhat. Buyers were hesitant, but Miami fared better than many parts of the nation. Inventory zigzagged. Prices dropped in some market segments as much as 30%. Inventory dropped throughout 2008 and 2009 and 2010. Distressed sales became more prominent. And as they did, appraisals on all properties, distressed and otherwise, were affected negatively.
In 2010, 52% of all EWM real estate sales were cash transactions. That number actually increases exponentially as we look at the upper price brackets: 2/3 of all of our property sales in the over $1 million category have been cash sales . And 1/12 (or 1/13) of all of the closed-transactions in Miami-Dade County selling above $1 million dollars were EWM sales.
Corporation relocations have always contributed to South Florida’s real estate growth. International investors have likewise accounted for much of the real estate boom that South Florida experienced over the years.
Because Miami is a highly tauted resort destination, with it’s tropical allure, tepid climate, and accessibility to 2 major international airports (Miami International and Fort Lauderdale) Miami will continue to attract foreign buyers and those wanting second homes or vacation property. Call us … We would love to help you find just the right investment for you! “Looking back, those who didn’t buy will wish they had.” – Vicki Restivo
