0 Spending on Construction is Up for Sept.

Posted on November 3, 2015 by Sean Greco

Recently, the US real estate market has seen a surge. An improving economy resulted in more jobs, and more people able to purchase homes. With this increase in demand came a decrease in supply, and construction struggled to catch up. However, according to the Associated Press, spending on construction increased 0.6% in September.

Private residential construction rose to the highest level since January 2008, in the midst of the Great Recession.

According to the AP, much of this spending surge was influenced by construction of apartment buildings. From August to September, construction of condominiums and apartment buildings went up 4.9%. Meanwhile, construction of single-family homes still rose, but only 1.3%. The Commerce Department said today that overall, spending on construction rose to a seasonally adjusted annual rate of $1.09 trillion.

Nonresidential construction only rose 0.1% in September. Construction of churches and religious buildings rose 5.6%. Public construction grew 0.7 percent from August. Spending on schools and other educational buildings rose 2.4 percent, and spending on water supply facilities was up 4.8 percent. Federal construction spending fell 1 percent, the biggest decline since a 4.4 percent drop in June.

Currently, the global economy is in limbo and weak overall, so the US real estate market’s resilience is particularly impressive. The economic weaknesses abroad have had some negative impact on American manufacturing and hiring. Last week, commerce reported that private investment in housing grew at an annual pace of 6.1 percent from July through September. This hike was four times the 1.5 percent growth registered by the overall economy.

On the surface, today’s data net out to be somewhat reassuring, if not perfect,” said Diane Swonk, chief economist at Mesirow Financial. “Friday’s employment report will be the primary focus of the Federal Reserve, where the threshold for liftoff is low.”

Low interest rates continue in the US, after the Fed decided last week not to raise them. They meet again in December and may hike up rates then.

Check out the beautiful pre-construction projects of luxury buildings available in Miami today! With any questions, contact one of our expert agents for a pre-construction consultation. Now is an amazing time to enter the housing market.

0 South Beach Luxury Condo Building Reaches Max Capacity

Posted on March 18, 2015 by Sean Greco

The luxury condominium development in South Beach, Ocean House, has recently closed the sale of its last unit that was bought for a cool $12.1 million. This recent wave of buyers scooping up Ocean House units speaks to a continued interest in the luxury real estate market, regardless of the recent decline in overall property sales noticed over the past few months. South Beach luxury condos are clearly still in high demand, which is in part due to the increased interest in Miami and surrounding areas by foreign and local powerhouses.

Ocean House was originally built in 1946, but recently undertook major renovations aimed at making the space reflective of its A-List address. Located at 125 Ocean Drive, the building has direct access to a strip of beautiful South Florida beachfront and is surrounded by some of the most notorious properties in the country. The building changed ownership in 2009, and since then has been transformed through extensive renovations and redesigns at the hands of the renowned interior decorating company Interiors by Steven G so as to fit the image people have come to expect from South Beach luxury. The units were reconstructed in a modern, Art Deco-style that has recently been very popular in the area, and residents can expect amenities such as private beach access, a fitness center, a beachfront pool, and a private theater room. Ocean House has 18 residences total that range in size from two to four bedroom condos, multiple penthouses, and two beachfront homes.

This recent closure on the final available Ocean House unit illuminates the continued demand for luxury real estate in South Florida despite larger market trends. This persistent investment in the area’s high-end property is a product of both the rising status of Miami and South Beach and the desire to bask in the Florida sunshine when temperatures cool up north. If you would like to know more about either residential or commercial listings in the area then feel free to contact a RE/MAX agent today or they would be help to assist you with all your real estate needs!

0 Downtown Miami Condo Market To Stabilize After Huge Boom

Posted on March 4, 2015 by Sean Greco

Condo sales in Downtown Miami have seen an extremely prosperous past few years, however economists foresee this tapering off during the next few months. This cool down in the market is caused by a number of factors, including increased construction costs, the diminishing value of foreign currencies, and high costs of properties in the city. The predicted decrease in sales can be seen most notably through the recent growth in resale prices for downtown Miami condos.

Fortunately this news is not cause for alarm since the cool down in sales is not predicted to have any significant long-term effects, and is just a typical feature of an active market. There are bound to be ebbs and flows in the Miami condo business simply because of the nature of the economy and all the various factors that play into it. This information is valuable simply in terms of helping to plan for the future, as managing partner at Cervera Real Estate Alicia Cervera said recently, “it’s important to know where we are and where we’re headed. A significant amount of new condo units are coming onto the market in the next two to three years, and everyone needs to be very strategic and cautious about what they’re offering.” By carefully watching real estate patterns developers can better gauge what projects they should push ahead on, and which ones they should postpone until sales pick up again. The amount of condominium complexes in downtown Miami has expanded enormously over recent years in response to the increased status of the area, and now we will see this urgent development start to slow slightly.

Properties in Miami are some of the most desirable in the country, and with the city continuing to grow as a commercial center as well as a luxury retreat demand for real estate is likely to rebound again rapidly. Now is the time to invest in luxury real estate here in South Florida, so if you are interested then contact a RE/MAX agent today!

0 Miami Residential Real Estate Sales Increase As Condo Sales Cool Off

Posted on February 25, 2015 by Sean Greco

Just over a month into the new year and economists are already seeing changes in real estate market for Miami-Dade County, as single-family home sales continue to increase in comparison with past years’ records. This is the third year in a row that we have seen a growth in the number of Miami residential real estate listings sold, with this January’s recorded sales coming it at 6.5% more than the amount of residential sales during this time in 2014. The median housing prices in Miami-Dade Country are also returning to levels close to what they had been before the market crashed, which further evidences the turnaround we have been noticing in the real estate industry over the past few years.

However, this increase in residential sales is countered with a 15% drop in Miami area condo purchases during the month of January compared with last year’s records. Economists are not worried though, as the general trend for the real estate market overall is positive and various declines in specific sectors during certain times of the season are normal and expected. Generally speaking, this report shows continued upward growth for Miami’s housing market and points toward an emergent trend of families investing in the area in a more long-term fashion, as South Florida develops into a residential, as well as commercial area.

More and more families are seeing South Florida communities as good locations to settle down and raise a family, close to business centers while also removed from the harsh weather and high stress atmosphere of some northern cities like New York or DC. The perception of the area is changing, and newly married couples are starting to see the area as a great place to quietly raise a family while still being able to have easy access to a commercial center. If you are interested in learning more about current South Florida listings then don’t wait, contact a RE/MAX agent today!

0 Russian Developers Invest In Bay Harbor Island

Posted on February 24, 2015 by Sean Greco

Russian based company Verzasca Group recently entered into the US real estate market this past December when they purchased a 15-unit Bay Harbor Island condo tower called Pearl House. Now they are on to their second project in South Florida, as they have just recently been approved for a nearby project called Le Jardin, which will be a 30-unit boutique condo building also located in Bay Harbor Island. Tim Lobanov, Gennady Barksy, and former New York Ranger hockey player Darius Kasparaitis formed Verzasca late last year after gaining real estate experience through building residential communities and public infrastructure projects in their native Russia. Lobanov, who is the company’s managing director, said that the men immediately saw South Florida as an ideal location for their US real estate venture; “Even before our group was created, we had our eyes on Bay Harbor Island. We felt it was greatly overlooked, undervalued and had great potential”. The planned condos will average $400 per square foot, and units will range in price with some going for around $500,000 while others priced closer to $1 million.

Verzasca is far from the only foreign company to see the profit in investing in South Florida. Recently many international companies have set their sights on the sunshine state, as this interest has only sparked more developers to turn their attention toward the area. With the real estate market in high demand now is the time to capitalize on available property, whether commercial or residential. If you are interested in learning more about South Florida listings then feel free to contact a RE/MAX agent today!

0 Trading Becomes The New Trend Among Miami Condo Owners

Posted on February 11, 2015 by Sean Greco

Miami Condo Owners

The recent increase in demand for Miami real estate, particularly from overseas investors, has sparked a new, creative approach to buying and trading that allows local businesspeople to capitalize on this economic shift. As opposed to trading stocks, South Florida’s financially savvy folks are now trading luxury condominiums, buying them before the construction begins and then selling them for a higher price once the building has been finished. The growing interest from foreign heavyweights in Miami real estate means that by the time construction of the condo has wrapped up, the price will have inevitably increased substantially, and in consequence those Miami Condo Owners are then able to quickly sell the space for a large profit and very little effort. With all the ongoing construction of new condominium buildings going on across South Florida there is no shortage of available product, which provides local investors with ample opportunities to turn a quick and easy profit, assuming they have the funds to initially purchase the condo at pre-construction prices. More and more economists are seeing Miami condo owners capitalizing on foreign interest in local properties, which works to stimulate both the real estate market and the South Florida economy simultaneously.

This recent pattern of buying and trading luxury condominiums is specific to Miami, because this is the city where foreign interest in real estate is the strongest. South Florida properties are in high demand, with both local and international investors eager to get a piece of the booming business as it continues to climb. With beautiful white sand beaches, year-round sunshine, glamorous nightlife and ample access to global trade it is no surprise that Miami real estate is a hot commodity these days, with both commercial and residential listings selling fast. If you are interested in checking out any of the many beautiful South Florida properties available today then feel free to contact a RE/MAX agent and they would be happy to assist you with whatever your needs may be!

0 Increasing Rents Spur Brickell Investment Properties

Posted on December 28, 2014 by Sean Greco

As 2014 comes to a close we can all look forward to a leveling off of residential rent, after a spike during the past year of 6%. Brickell Investment Properties has become part of Miami’s downtown residential development this past year and we’re pleased to say will be adding to the 2300 new apartments that will become available within the next 24 months. This is great news for potential investors because the surge in Brickell Condos for sale will ultimately cause prices to level off, offering more opportunities for those who want to live in Miami’s core district, which has seen a massive growth in the past few years. Demand for properties in the area continues to mount, so these new spaces will surely be in very high demand, particularly with their expected affordability.

The new year provides enormous anticipation with this exciting space opening, nearly doubling commercially owned rental opportunities for those who may have otherwise been priced out of the downtown district. With condos in such high demand now is the perfect time to invest before the demand outweighs the availability. To find out more and see some of the properties you may be interested in contact a ReMax agent today.

0 Luxury Real Estate Buyers Seek Additional Space

Posted on October 28, 2014 by Sean Greco

Increasingly, luxury real estate buyers want a little something extra with their purchase – a guesthouse. Often thought of as a extra only those exorbitantly wealthy could afford, buyers of “low luxury” properties are now prioritizing guest space as a must. Historically, guesthouses are seen at properties worth about $10 million, however today’s buyers in the low single digit range are searching for this convenient extra space. Useful for visitors, home offices or even a nanny, guesthouses offer a less expensive alternative to remodeling the structure of the main house.

This increase in demand for additional space has led to innovative new ways to provide this to urban properties. “We kept hearing people say they loved the full-floor penthouse, but wouldn’t it be great if it came with a separate unit…?” says Vickey Barron, director of sales at the Walker Tower condo building in New York City. This demand has led to sales of two units in the same deal. The buyer purchases the main unit for themselves, and a unit on the same floor or floor below for whatever purpose they may chose.

According to Jason Rodriguez, a builder based in Los Angeles, a guesthouse can boost a property’s retail value by 20 percent. As this trend becomes increasingly popular look for luxury urban centers like Miami to see an uptick in business. The Miami luxury condo market is full of opportunities for all types of buyers – those seeking the addition of a new-aged guesthouse, or those seeking a more classic penthouse. If you’re interested in a Miami luxury condo please feel free to contact a RE/MAX agent today!

0 The Return of Condo Conversions

Posted on October 23, 2014 by Sean Greco

Before the housing bubble burst in the late 2000s developers in the United States had found a new method of gaining high returns in a relatively saturated market – condo conversions. A condo conversion is simply the conversion of an apartment, or apartment community, that is a rental unit, into condominiums. These projects can be capital intensive, and thus were hurt in the liquidity crunch that occurred as a result of the global financial crunch as banks were much less willing to lend. Today, demand continues to rebound for residential ownership, especially in large cities where owning a condo can be much more convenient than owning a single-family home.

The East Coast in particular has seen condo conversions really begin to take off. These conversions give developers an exit strategy if they feel the market is strong. After developing a property to be apartments, they can opt to convert the units into permanent condominiums if they feel the demand is there. However, the companies often require a rate of return on their investment of 20 percent, without reaching this bar it is unlikely the property will be converted.

The Miami condo market is strong, and condo conversions are likely to bring more high quality properties to market in the coming years. For those who wish to live in a multidimensional and international city like Miami, condos are a great option because they offer many of the comforts of a conventional house while being located in urban areas. If you’re interested in the Miami condo market or Miami real estate in general, feel free to call or email a RE/MAX agent today!

0 Condo Market Poised for a Comeback

Posted on October 21, 2014 by Sean Greco

After being hit hard by the recession some six years ago, the market for condominiums may be getting back on track. Condos were hit harder than most other segments of the real estate market after the financial crisis, including single-family homes. As a percentage of total sales, condos fell two percent, to only 10.7 percent, during the crisis and have struggled to regain ground since. For several years now sales have been stagnant, however this may no longer be the case. After gaining some momentum during 2013, condo sales have rebounded back to 12.3 percent of total sales, according to Sam Khater, CoreLogic Deputy Chief Economist. Among the hottest condo markets in the country is our own Naples, Florida, which has seen condo sales grow over 10 percent in the last year.

One of the largest drivers of this growth is young people. Those ages 20 – 24 account for a large portion of the growing condo market. Increasingly uninterested, or unable, to purchase their own home, this bracket often looks for condos in urban areas to satisfy their housing needs. As has been discussed in previous postings, it can be very difficult, given current lending standards, for someone of this age to qualify for a loan to purchase a house. For this reason, many young people, particularly in big cities like Miami or Denver, look to the condo market for housing options. People of this age also don’t always want to make the commitment to a house in a certain location, as their job or personal preferences may take them elsewhere.

As the condo market begins to heat up again why not check out what the Miami condo market has to offer? Contact a RE/MAX agent today if you have any questions about Miami condos, or Miami real estate in general!