Is Miami the top international destination for real estate?July, 2014
by Mitja Pizzedaz
Is Miami the top international destination for real estate?
Definitely so, judging from every major economical indicator.
The Miami association of Realtors, representing 99% of all real estate agents in Miami-Dade county, reports a third consecutive record breaking year in residential sales, with a double digit increase in average price.
“The strong demand of both domestic and international buyers meant for Miami another year to remember ”, president of the Miami association of realtors, Liza Mendez comments. “We expect this demand to continue throughout 2014 but we would also like to encourage all those owners that have been waiting for the right time to sell, to enter the market and to help with the balance between offer and demand”.
In 2013, a total of 30,041 units have been sold in Miami with a 8% annual increase. The luxury market has been particularly active, with single family homes showing a 12,5% year-to-year growth.
According to the Miami association of Realtors, in 2013:
1.The time needed to close a deal has reduced
In 2013, it only took 41 days to sell a single family home compared to 44 days in 2012, with an improvement of 6,8%. Same numbers for condos.
2. The campaign in support of the reduction on the inventory has proved to be a success
The input from Tallahasse to drastically reduce the number of foreclosures and distressed properties has been a success so far. Entire historic neighborhoods have been return to the city and quickly made available for new projects. The inventory of available property has seen an increase of 15% for single family homes and of 14,5% for condos.
“The current market offers many opportunities for those investors finally ready to capitalize on a more balanced offer, after years of sellers’market”, the president of the residential division of the Miami association of realtors, Francisco Angulo claims. ”At the moment, there are plenty of available inventory for every pocket and prices are the same as back in 2004. This means that purchasing a house in Miami remains something accessible to the great majority of people. We believe it’s important to highlight this aspect considering that Miami has become a global city and one which boasts such an enviable life style”.
3. The value of residential real estate keeps growing
The average single family home went from $188,000 in 2012 to $225,000 while condo saw a spike in value by 19,9% or $175,000.
4. The percentage of cash sales reflects the status of Miami as a top international market
Miami has more than double cash closing than the rest of the nation: 62% versus 30%. 90% of all the international buyers that purchased real estate did so without any financing and this statistics alone shows the position of absolute prestige that Miami has reached in the last few years