0 Miami Real Estate Market Forecast: 2020 Looks Promising In Miami Beach

Posted on February 25, 2020 by Sean Greco

For many, 2020 has brought with it a feeling of potential. Like a deep breath of fresh, crisp air at the beginning of a new adventure. I suppose every new year is like that, in a way. Bringing with it the promise of a new chapter, a fresh start. But this one has admittedly felt more powerful. The energy is palpable and catching. Have you felt it in your life?

Surely, I am not going to advise you to invest in Miami real estate simply because the energy of a fresh decade holds promise. But with any fresh start comes a time for fresh ideas and opportunities. If you are considering investing in real estate this year, you should really look at Miami, paying special attention to the submarkets. Miami Beach is looking good, as are several other key submarkets.

Miami Real Estate Market Forecast Is Promising as Population and Income Growth Continue

Population and income growth are great leading indicators of real estate investment potential. Miami has seen strong growth in both of these areas, a trend that is expected to continue. In fact, SmartAssets just listed Miami as one of the top 10 “boomtowns” in the country. Boomtowns are cities where rapid economic growth is creating jobs and attracting new residents. Americans are flocking to these cities because “business is booming, jobs are plentiful and salaries are rising”.

Miami population grew by 9.43% from 2014 to 2018. The Bureau of Economics and Business Research, Florida Population Studies has predicted Miami population could grow by another 13% from 2020 to 2030, ending at close to 3.5 million people.

Income growth in itself is a sometimes forgotten metric that has a huge impact on the state of the housing market long-term. Miami household income grew by a whopping 31% from 2014 to 2018. This rapid income growth helped Miami achieve the rank of second-fastest-growing large city in America in a recent study. The study compared 515 U.S. cities across 17 key factors ranging from population growth to college-educated population growth and unemployment rate decrease.

Miami’s population and income growth can be directly correlated to growth in the housing market. According to a Comprehensive Housing Market Analysis by the U.S. Department of Housing and Urban Development, during the 12 months ending February 2019, new and existing home sales increased 7% in Miami-Miami Beach-Kendall, Florida.

According to a 2019 Knight Frank Wealth Report, Miami takes the title of #1 fastest growing luxury real estate market in the US, and #5 fastest growing luxury real estate market in the world after Madrid, Berlin, Paris and Cape Town.

Miami Housing Demand to Surpass Development Growth

There has been a large amount of development in Miami and Miami Beach in recent years. So much so that it has even slightly outpaced population growth, leading to a surplus in real estate supply. Some of these developments are still under construction with closings expected throughout the year, but the flow of new inventory is slowing. A forward-focused eye can see that this is likely to level out in the investor’s favor.

Far fewer new Miami developments are slated to break ground than there were several years ago. With population growth predicted to continue at a healthy pace, supply will fall off as the inventory is absorbed. This presents an opportunity to secure an investment now when the competition is less fierce and sellers more motivated due to properties languishing on the market. Eventually, the seller will need to sell. So, buy right, then the fundamentals will take over from there. You truly ‘make your money’ on the buy-side in Real Estate. Especially if you follow the fundamentals and truly understand the sub-markets.

While there has been excess demand in several sub-markets, Miami Beach is a sub-market with good fundamentals that has been somewhat stagnant in the past several years. With sound fundamentals and reduced competition, Miami Beach is worth a good look. The State of Florida has so much momentum right now. Miami Beach is positioned extremely well and will continue to be a key piece of the puzzle.

Savvy Investments Continue in Miami

The slowing of new development is a natural thing that allows the market’s supply and demand to re-balance. However, new development has not fallen off of a cliff entirely. Continued investments from experienced investors offer another positive sign for Miami’s real estate market forecast.

Moishe Mana, who owns a major redevelopment project in Wynwood, has put together a growing portfolio of roughly 45 buildings in Miami since 2014. According to an article by Forbes, in October, the Mana Group unveiled a timeline for the redevelopment of his downtown Miami properties, including 11 buildings between Southeast First Street and North Miami Avenue that would be delivered between the first quarter of 2021 and the fourth quarter of 2024.

As all good investors know, the key to making a sound investment is looking closely at the fundamentals when identifying the potential for growth. In Miami Beach, the fundamentals are as good as ever. Interest rates are low, tax advantages are large, and demand is slated to grow. Miami is a buyer’s market now, and a seller’s market to come. That makes it the perfect time to get in on a sound real estate investment in Miami. As Warren Buffet would say, “be greedy when others are fearful”.

0 Capitalism Feasts on Miami Real Estate Market, Consumers Suffer

Posted on January 29, 2020 by Sean Greco

Let’s face it, the Miami real estate market is oversaturated with under-qualified agents and over-promising vendors. A slew of agents with a severe lack of experience and dedication are fed leads from automated systems daily. Overwhelmed with the noise, many customers inadvertently do themselves a disservice by working with the first agent they speak to. And the vendors – oh, the vendors. They prey on the real estate industry because it’s a big, lucrative, easy target. They offer forward-looking solutions, but what value are they adding to the end customer?

Miami Real Estate Market – Fastest Growing Luxury Market in the US

When you look at the sheer size of the Miami real estate market, this oversaturation starts to make sense. According to Knight Frank Wealth Report, Miami takes the title of #1 fastest growing luxury real estate market in the US, and #5 fastest growing luxury real estate market in the world after Madrid, Berlin, Paris and Cape Town.

Total sales volume for Miami in Q2 2019 topped $3.6 billion dollars. And the beast is still growing. Median home prices have increased for 30 consecutive quarters in Miami, a streak spanning 7.5 years while short sales and foreclosures have decreased heavily over time.

Miami Real Estate Market Foreclosures Over Time –

Lucrative Real Estate Markets Create Opportunities for Vendors

Any industry of this size is bound to have an influx of opportunistic vendors and agents, all grabbing for their piece of the pie. A great example of this is Zillow. About 70% of Zillow’s revenue comes from the company’s “Premier Agents” who pay for placements on Zillow to generate leads. It’s reported that Zillow brought in $300 million in revenue in Q1 2018 alone, which equates to over $200 million in revenue from agents paying to be connected to customers in one single quarter.

What is the consumer getting when they are connected to a Zillow “premier agent”? Literally just someone who has paid a fee to Zillow. That’s it. Not a trusted provider or anyone with any sort of guaranteed experience. This is a perfect example of the type of thing that exists to falsely build confidence and ultimately creates confusion.

There is no shortage of agents paying the Zillow’s of the world, which adds to the noise for the consumer. The chance that a consumer gets paired with an inexperienced agent while shopping around online is quite high. In fact, a 2014 NAR study reported 87% of all new agents fail after five years in the industry and only 13% make it, mostly due to issues with sales volume.

Capitalism Feasts on the Real Estate Industry

Outside of property listing aggregators, there are innumerable other “top” real estate agent short-lists and certifications. Many aimed at giving agents another badge with which to attract potential customers. While perhaps well-intentioned, many of the accolades that are not backed by the NAR are not executed or regulated consistently enough to prove any real distinction or value. In this way, they only serve to offer further confusion for the consumer.

According to statista.com, in 2016, agents and brokers’ ad spending amounted to 9.3 billion U.S. dollars. There are so many agents out there that don’t produce, yet they throw money at whatever hot new thing they think will make them rich and it skews and distorts the industry as a whole. And then 87% of these agents are gone in 5 years, largely because they weren’t able to generate enough business to remain profitable.

Investments in technology amidst the changing landscape also come into play. “According to PitchBook, an analysis firm owned by Morningstar, the amount of venture capital invested in real estate technology companies was up to $1.2 billion in 2017 from just $31 million in 2012.” But what technology is helping the consumer, and what technology is just designed to increase transaction volume for real estate agents?

When It Comes to Picking An Agent – Be Picky

Consumers in the real estate industry are still too trusting. In general, they are not taking the time to vet their agents. NAR found that an estimated 72% of customers do business with the first agent they talk to. This is a recipe for disaster, leading to over 26% of people stating that they would not use their agent again, and so many more not knowing what they were missing.

Our advice to all consumers in the real estate industry: Break the trend. Take the time to vet your real estate agent. This is hard to do amidst the noise from vendors and inexperienced agents, but we promise it’s worth your time. Do this for yourself before paying an agent thousands of dollars to sell one of your most valuable assets, or signing a mortgage for hundreds of thousands of dollars that spans the next 30 years of your life.

Don’t just go with the first person you hear from. The automation that likely drove the speediness of that response will not replace the real value of an experienced real estate agent. The real value comes from the years of experience that are used to guide you through the real estate transaction process and maximize the potential of your investment.

The Limitations of Automation in Real Estate

Automation can sometimes be used to the consumer’s benefit, but the process itself is so complicated, granular, local, and personal. We’re not even close to tying all of the pieces together effectively in an automated way. Automation is still largely insufficient given the large amounts of money at stake and the magnitude of the decisions.

You need to know if the area in which you’ll live, vacation or invest will increase in value over time. This process can be so granular that two neighboring buildings can have vastly different property values and sales hurdles based on factors that an algorithm may never consider – such as frequency of maintenance, zoning, and whether or not they have a doorman and a secure lobby. The process is complicated. There is still a human element to real estate that can’t be relegated to an algorithm.

A good real estate agent focuses on the quality of their customer’s experience over the number of their leads. They make their customers feel comfortable and heard as they guide them through the process. Speaking to a knowledgeable real estate agent about the market, the pros and cons of the decisions to be made, and what to expect along the way provides a level of comfort that no amount of automation can replace. No automation can really take you through that complicated process in an informed way. Neither can a hyped-up vendor or a bad or inexperienced agent.

In Conclusion

The growth in the Miami real estate market has created an opportunity for vendors and entrepreneurs to make money. Unfortunately, that doesn’t correlate to sustainable businesses that help consumers. Instead, a landscape has emerged where vendors prey on real estate agents and the consumers ultimately suffer through a lack of personalization and clarity. Vendors should exist to service-producing real estate agents, allowing those agents to add value to the end customer. Agents should leverage the available products and technology to the consumer’s ultimate advantage. The real estate industry has a ways to go to achieve a more symbiotic relationship between all parties.

0 Miami Real Estate Records Set to Break

Posted on January 7, 2016 by Sean Greco

As of late December, Miami real estate records were set to break. 2015 was expected to break all-time annual sales of single-family homes. Miami-Dade County most likely broke the record for the fifth consecutive year. A report by the Miami Association of Realtors and Multiple Listing Service System expects the record to break again especially after a strong November. Prices rose and sales were quick at the end of 2015.

Through December 2015, there were 12,857 single-family home sales. Last year’s record was 13,521. Miami is popular, growing, and its real estate continues to be a hit among buyers.

“A fifth-consecutive record year for single-family home transactions is a testament to the vitality and allure of Miami real estate,” said Christopher Zoller, a 27-year Miami-based Realtor and the 2015 Residential President of MIAMI. “International and domestic buyers want to invest and live in one of the world’s top global cities. Miami existing condominiums are also on pace for a historic sales year despite an increase in competition from new construction properties.”

Single-family home sales is just one of the Miami real estate records set to break. By the last few months of 2015, existing condominium sales were paced to be the third best year of all time. Through November, there had been 14,770 existing condominium transactions. The number one record is 17,142 from 2014. It is especially impressive for 2015 to be setting records considering many pre-construction condo sales.

Miami real estate from the last year is strong, healthy, and breaking records. In 2015, real estate in the Miami area was selling faster and closer to the original list price. The median number of days on the market for Miami single-family homes fell 19.1 percent to 38 days in November 2015 from 47 days in November 2014.

Miami has so much to offer for any type of buyer. There are great investments in commercial buildings, single-family homes in fantastic neighborhoods, and new or existing condos. RE/MAX Paradise can help you find the perfect home or piece of property!

0 2016 Housing Forecast: Best Since 2006

Posted on December 8, 2015 by Sean Greco

If you are a homeowner not even planning on moving, but especially if you are planning to buy or sell a new home, it is always great to see a bright 2016 housing forecast. According to realtor.com, the forecast for 2016’s upcoming year is not just bright, it is looking to be the best year since 2006. The online real estate service operated by News Corp subsidiary Move, Inc. showed that new home construction and gains in the existing market are joining forces to push total home sales to the highest they have been in 10 years.

2016 is not going to see a huge spike in sales. Instead, sales will be moderate and steady growth of home sales and lowering of prices.

“Next year’s moderate gains in existing prices and sales, versus the accelerated growth we’ve seen in previous years, indicate that we are entering a normal, but healthy housing market,” says Jonathan Smoke, chief economist for realtor.com. “The improvements we’ve seen over the last few years have enabled a recovery in the existing home market, but we still need to make up ground in new construction, which we could begin to see in 2016.”

For the first time since 2006, realtor.com predicts a whopping 6 million total sales for new and existing homes next year.

For Florida specifically, impressive gains will be seen thanks to purchases by retirees. People aged 65-74 made up 14 percent of homebuyers last year, and the trend should continue. According to realtor.com, two Florida cities are on the top five list that will see the most action from retirees.

As 2015 wraps up, the real estate market overall saw a year of positive growth with many, many happy new homeowners. With 2016’s future being full of growth in sales but also easing on prices, both homebuyers and sellers should be excited for is what to come. We at RE/MAX Paradise are excited about the 2016 housing forecast, so please reach out to us with any questions about real estate in Miami!

0 No Need to Worry About Higher Interest Rates

Posted on June 22, 2015 by Sean Greco

While current interest rates are some of the lowest in modern history, they will soon start to rise. Usually, consumers and investors hear that interest rates will rise and immediately assume this will be a a costly problem. However, according to economists, these rates will not climb quickly enough to cause long-term damage. Climbing interest rates are also a sign of a healthy economy, signifying that people are spending, companies are hiring, and rates are rising at a normal rate. US as well as European rates in financial markets are on the rise, and economists believe it will continue to do so. The US economy is expected to expand 2.5 percent this year, very close to last year’s expansion of 2.4 percent. However, the buzzing job market will make a difference. In the last year, 3.1 million more people became employed, bringing the unemployment rate down from 6.3 to 5.5 percent.

What do these economic changes and rising interest rates mean for consumers and home-buyers? Mortgage rates will continue to climb. Fixed-rate mortgages are advisable due to this continuous climb expected in mortgage rates.

With an economy that is growing, higher interest rates are inevitable and a good sign of a healthy economy. Also, these rates are not spiking- they are rising more slowly than people expect and will not have extreme affects. In today’s sturdy economy, it is a great time to invest in a home in the Miami Area, and RE/MAX Paradise agents are available to help you do so today!

0 Icy Temps Spark Rise In Demand For Southern Real Estate

Posted on February 26, 2015 by Sean Greco

A recent report from the economic team at realtor.com sited that there has been an increased amount of interest in southern real estate, which is no surprise as snow continues to pile up in the north with no signs of stopping anytime soon. This is not an uncommon trend during January and February when people are dreaming of warmer weather, however this winter has been particularly brutal and more and more people expressing interest in properties throughout the southern states in the hopes of escaping the fridge temps. Coming in at the top of real estate searches this month were Florida destinations Orlando, Miami, Tampa, although Raleigh, NC also ranked high on the list. The overall stats showed that commonly the areas of the country with the best markets during the winter months were Miami, Las Vegas, Phoenix, Raleigh and San Diego, which isn’t too shocking considering their average temperature for January was more than double that in the bottom 20 markets. According to Jonathan Smoke, chief economist at realtor.com, “The correlation between warmer metropolitan areas and more January searches makes sense, as it’s easier to get out and go house hunting in these cites. In these markets, looking for a home in November or January makes as much sense as August.” Harsh winter storms are prompting more people than ever to consider investing in southern real estate, which is good news for the market here in South Florida.

With year round sunshine, white sand beaches and booming business it’s really no surprise that demand is growing for properties throughout Miami and the surrounding areas. Buildings, condos, and homes are selling fast and often close to the original list price, so now is the time to get serious if you have been considering real estate here, whether commercial or residential. If you would like to know more about available listings then don’t wait, contact a RE/MAX agent today!

0 Miami Properties no doubt a part of UCF economic forecast

Posted on January 2, 2015 by Sean Greco

University of Central Florida released its quarterly report this past week, which suggested that 2015 would bring further economic prosperity for the state and boost the already strong housing market, giving residents reason to smile while welcoming in the new year. Dr. Sean Snaith directed the report, and he along with his team found that the recession hit Florida particularly hard, but during the past few years has rebounded substantially. The quarterly report predicted a total growth of 2.6 percent at the close of 2014 and a 2.7 percent growth during 2015, which illustrates the stability of our developing economy.

Snaith and his team focused specifically on the housing market, as it is one of the Florida’s more important industries and has seen the most change recently. Median home prices will continue to be on the rise, with the average having increased from $122,200 to $177,000. This trend is great news for mortgage holders who will be able to rest easily as the value of their property goes up, and coupled with the demand for real estate in the state will further stimulate the economy as a whole. The UFC also saw a more than four percent drop in all-cash sales during the past year, which predicts a rise in more traditional buyers throughout the state and a stronger market overall. This study reflects the widespread prosperity throughout Florida and predicts even more financial success to come with the new year.

Miami properties in particular have seen a rise in demand as a result of this rebounding economy, with new listings selling quickly and close to the list price. South Florida is becoming increasingly popular as both a commercial and residential area and people are clamoring for available property before it gets snapped up. If you are interested in the luxurious real estate currently on the market then contact a RE/MAX agent today and they can assist you with all your real estate needs.

0 Consumer Confidence On The Rise

Posted on December 1, 2014 by Sean Greco

Business is booming in Florida and residents have taken notice. Whether it’s the merriment of the holiday season or the reduced unemployment rate, the economy in our sunny state is thriving and consumer sentiment ratings are climbing the charts as a result. According to a recent survey conducted by UF’s Survey Research Center in the Bureau of Economic and Business Research, Floridians’ consumer sentiment rating is the highest it has been since 2007. It seems we are shaking off the recession blues, and this newly recorded positivity about the economic conditions presumably stems from both the prosperous Florida economy and our steady decline in unemployment rates, which dropped one tenth of a percent in October alone. Consumers now are less wary than in years past, and this increased confidence combining with a flourishing stock market, inexpensive gas prices, and low interest rates is resulting in a boost in spending across the state. Even the recent election, which typically results in a dip in consumer sentiment ratings did not dampen respondents’ economic outlook. This resilient optimism surprised the Bureau and seems to reflect the persistence of this perspective, showing that the tides really are turning for Florida’s economy.

One area in particular that shows serious growth potential is real estate. With low interest rates and consistently steady housing prices now is the time to make those luxury living dreams a reality.

So, if stunning, sandy beaches and glamorous nightlife appeal to you then why not invest your money in something that would allow it to grow even as you enjoy the perks? Whether you are in the market for a chic condo or a spacious new home, South Beach real estate has it all and we have the tools to help you find it. If you are interested in learning more about Miami’s luxury real estate options, whether commercial or residential, don’t hesitate to contact a RE/MAX agent today!

0 Getting to Know the Miami Beach Real Estate Market

Posted on October 11, 2013 by Sean Greco

If you are looking for a place with spectacular views and a lot of things to do, then the Miami Beach area is going to be the place for you. Miami real estate is located in an area that is highly sought after by people looking to move to the area. If you are looking to make a move to one of the luxury condos in Miami Beach, then you will want to get familiar with the attractions that make Miami Beach what it is today.

Special Places in Miami Beach that You will Want to Know About

Take your family to the Miami Beach Botanical Garden for a free activity that mixes a pond fresh atmosphere with various flora that you can enjoy as you walk the grounds. The Botanical Garden is open Tuesday through Sunday 9AM to 5PM.

Stroll down Ocean Drive and enjoy the rich architectural design of the early style buildings that have lined Miami Beach nearly a century ago. Ocean Drive has many different shops that can be explored and hotels that you can stay the night in while viewing Miami properties.

Spend a day walking Lincoln Road which is a pedestrian road that is lined with shops and restaurants for people to enjoy. Finish your day with a stroll through the Lincoln Road Mall. Here you will find your favorite shops mixed with places to eat with a wide range of foods.

Miami Beach is a great place to find a luxury condo for your family. To find out more about the Miami Beach area and real estate, please contact us today. We can help show you homes that you want to view and show you places of interest that you can enjoy while visiting the area.

0 Miami Beach Single Family Homes Real Estate Market Data – August

Posted on August 28, 2013 by Sean Greco

Taking a look at a more narrowly defined Real Estate Market can be very helpful because all Real Estate is Local. We have done this for Miami Beach Area Single Family Homes.

The below chart is data from the past 90 days for Single Family Homes, ending 07/31/13. The data is taken from South East Florida’s Multiple Listing Service (MLS) for the cities and townships of Miami Beach (South Beach, Mid Beach, & North Beach), Surfside, Bal Harbour, Bay Harbor Islands, and Fisher Island. This data will help to analyze market conditions from month to month.

As you can see, we have broken the data into price ranges, and then you can see the amount of Active homes for sale, how many Real Buyers losed on a home for sale, how many of those listing agreements Expired unsold, then further calculated what percent of the Active homes for sale Expired and Sold. Then we calculated the Average Days on Market (Avg DOM), which is the amount of days it took the homes that sold to obtain a Real Buyer. Then we show the Average Discount, which is the percentage the Listed Price was discounted to the Actual Sale Price for all Closed Sales. The last column is for Average Age of the homes Sold.

Target Market Data – Single Family Homes

Price Range	Active	Closed	Listings Expired	% Listing Expired	% Sold	Avg DOM	Average Discount	Average Age
$0 – $399,999	8	6	2	25.00%	75.00%	62	+2%	1944
$400,000 – $499,999	4	7	1	25.00%	175.00%	45	7%	1946
$500,000 – $649,999	11	11	2	18.18%	100.00%	215	6%	1943
$650,000 – $799,999	19	10	4	21.05%	52.63%	150	10%	1934
$800,000 – $999,999	21	12	1	4.76%	57.14%	111	6%	1944
$1,000,000 – $1,299,999	31	8	5	16.13%	25.81%	187	11%	1954
$1,300,000 – $1,599,999	19	6	6	31.58%	31.58%	71	14%	1954
$1,600,000 – $1,999,999	14	4	3	21.43%	28.57%	73	7%	1943
$2,000,000 – $2,999,999	21	8	5	23.81%	38.10%	128	10%	1970
$3,000,000 – $3,999,999	24	10	5	20.83%	41.67%	265	8%	1950
$4,000,000 – $4,999,999	13	3	2	15.38%	23.08%	249	8%	1950
$5,000,000 – $5,999,999	10	2	2	20.00%	20.00%	313	13%	1966
$6,000,000 – $6,999,999	9	2	0	0.00%	22.22%	294	7%	1949
$7,000,000 – $9,999,999	21	3	1	4.76%	14.29%	163	11%	1959
$10,000,000 +	28	8	2	7.14%	28.57%	259	8%	1980
Totals:	253	100	41	16.21%	39.53%	172	8%	1952