Category Archives: Miami real estate

0 Miami Housing Market Is Hot and Getting Hotter As We Head Into Spring

Posted on by

Spring is right around the corner, and the temperatures aren’t the only thing heating up. The Miami housing market is hot and getting hotter. As demand for homes is soaring, the supply of homes for sale is shrinking, creating an increasingly competitive and dynamic environment for prospective buyers.

Inventory of single-family homes was down more than 40% year over year last December according to a report from the Miami Association of Realtors. When you pair this with the fact that Miami-Dade County total home sales jumped 23.3% year over year, you can start to see that there is a clear mismatch in supply and demand within the Miami housing market. 

In fact, this is the story in Miami, in Florida as a whole, and in many other states throughout the US. There are currently fewer houses for sale and more buyers wanting to purchase them. Because of this, each home that enters the market is likely to be considered by more people, which ultimately leads to more offers being submitted for each home. This makes for a really competitive market, giving the sellers leeway to choose among the best offers. It can often lead to homes selling quickly and above their listing prices.

As Danielle Hale, realtor.com’s chief economist puts it, “Those thinking of getting into the market this spring should brace themselves for a competitive season, especially in the market for existing homes.” 

 

The Miami housing market is hot, hot, hot!

Just take a look at these stats from the Miami Association of Realtors 2020 report

 

  • Miami luxury home sales surged 108.5% year-over-year in December 2020
  • Miami-Dade County total home sales were up 23.3% year-over-year at the end of 2020
  • Miami single-family home sales posted double-digit, year-over-year increases for 5 consecutive months
  • Miami existing condos posted transaction gains for 4 straight months
  • 109 Consecutive Months of Price Appreciation in Miami, a streak of more than 9 years

 

Why are we seeing these positive trends in the Miami housing market?

There are several factors creating the perfect storm for Miami real estate.

 

  1. Record-low Interest Rates. Mortgage interest rates are at an all-time low and are currently widely available below 3%! This can amount to thousands of dollars in savings over the lifetime of the loan.
  2. Work-from home and remote-learning policies pumping demand. These lifestyle shifts have left many people spending much more time at home. As a result, people want to love where they live and are looking for their dream homes. We are seeing a trend of people using this opportunity to move somewhere where they can really enjoy their lives, such as sunny Miami Beach. 
  3. Florida Tax Benefits. People are leaving more heavily tax-burdened Northeastern states to Florida where there is no state income tax. See our take on why so many people are moving from New York to Florida.
  4. Miami is an International Bargain. Miami is an epicenter of global activity, and Miami real estate is still a bargain compared to other global cities. According to Knight Frank’s 2019 The Wealth Report,  In Miami, $1 million can net homebuyers 93 square meters of prime property, which is significantly higher than some other major international cities such as Monaco (16 square meters), Hong Kong (22), New York (31), and Los Angeles (36).
  5. Investment potential. The Florida real estate market is showing no signs of slowing down, and real estate is an attractive, more stable asset in what can at times be a volatile economy.

 

The Miami housing market is strong right now, and it will only get stronger as we head into Spring. The longer you wait, the more likely competition and prices are to increase. Miami’s 9-year streak of monthly average price increases is a testament to that fact. Now is the perfect time to find a home that you love in Miami. If you are interested in learning more, reach out, we would love to talk!

0 Are Over Half of Miami Beach’s Airbnb Listings Illegal?

Posted on by

Illegal Airbnb Listings are Rampant in Miami Beach

Miami Beach carries the highest penalties in the country for illegal short term rentals with fines starting at $20,000 for a first offense and increasing up to $100,000. Regardless, illegal short term rentals remain rampant in Miami Beach, particularly on sites such as Airbnb. By cross-referencing data from the Miami Beach Business Directory with the number of active listings on Airbnb, we have determined that upwards of 57% of Miami Beach’s Airbnb listings are illegal.

The Miami Beach Business Directory shows just over 1,900 business licenses for residential transient short-term rentals in Miami Beach as of March 2020. However, according to a 2019 article by the New York Times, there are over 4,500 active Airbnb listings in Miami Beach. Assuming this number has remained stable, this would mean that the remaining 2,600 Airbnb listings do not have valid Businesses Tax Receipts, and are therefore operating illegally under the city of Miami’s short term rental regulations. In other words, there are over 2X more listings on Airbnb in Miami Beach than there are legal short-term rental properties.

Property owners are not the only ones that suffer when Miami Beach vacation rentals are posted illegally. The experience is also risky for guests who may face eviction after unknowingly booking an Airbnb that does not comply with the city’s regulations. Guests have been interrupted on their vacations by code compliance officers and are sometimes even asked to leave, although Airbnb has rarely been said to offer refunds to guests in these scenarios. 

 

Why are there so many illegal short term rentals in Miami Beach?

The high number of illegal short term rentals in Miami Beach likely boils down to the City experiencing difficulty identifying offenders. As a result of the settlement from the lawsuit between Airbnb and the City of Miami Beach, home-sharing sites are required to display the business tax receipt number and the resort tax numbers as a stamp of legality next to each listing. However, home-sharing sites are no longer expected to verify the validity of these licenses. Airbnb provides the mandatory fields for hosts to fill out and it falls on the city to verify the validity of each listing. 

It would appear that the use of fraudulent license numbers is rampant across home sharing sites like Airbnb. It would also appear that the city has not found a viable solution to consistently identify fraudulent listings or to enforce the associated penalties. Enforcement seems to have been mostly sporadic following properties being reported by neighbors.

This situation has been made all the more complex following a judge’s October 2019 ruling to strike down the ordinance which set the $20,000 fees for first-time violations. This ruling was immediately appealed by the city.

 

The History of Short Term Rental Law in Miami Beach

Miami Beach’s Short Term Rental regulations have been in place since 2010, though the steep fines were not implemented until March of 2016.  These fines range from $20,000 – $100,000 for repeat offenses, making them the highest in the country. 

This ordinance was heavily enforced until being struck down in October 2019 in the conclusion of a lawsuit filed by a city resident who had been fined for a short term rental violation.

The judge ruled that the ordinance violated state law, which prohibits fines of more than $1,000 a day. The city immediately appealed the decision. Until an appellate court rules on the case, the law is still in effect and the city plans to enforce it. 

Meanwhile, Airbnb was engaged in its own lawsuit with the city of Miami Beach. They filed suit in January 2019 claiming that Miami Beach’s short term rental regulations violated federal law. Why? Miami Beach was placing the onus for compliance on home-sharing websites by requiring that they display license numbers alongside listings.

This suit was settled in early August following a mediation proceeding, but the essential requirements remain in place. 

 

How Do Florida Residents Feel About Short Term Rental Regulations?

Miami Beach’s short term rental regulations are undeniably harsh with many areas of the city being completely excluded from participating in short term rentals. This type of ban doesn’t sit well with the majority of southeast registered voters who responded to a Mason-Dixon poll:

“Do you believe state and local governments should or should not have the authority to ban homeowners from renting out their private property for less than 30 days?”

61% answered that they should NOT have such authority, while 21% said that they should, and 13% said they were not sure.

This poll also asked, “How important do you believe vacation rentals—such as beach houses, waterfront homes and hunting & fishing cabins—are as a component of Florida’s tourism industry?”

59% responded “Very Important”, 26% responded “Somewhat Important”, and only 9% responded that it was “Not Too Important” or “Not Important.

 

If you are considering renting out your property on a short-term basis, consult our resource on “Practicing Safe Renting” to learn how to avoid potential fines. You can also check out our other resources on short-term rentals regulations and legislation in Miami:

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

Posted on by

miami beach real estate market forecast

 

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 Properties & Paradise: Real Estate For Sale in Miami Beach FL

Posted on by

Miami Beach Coast, Florida (Photo by Hoberman Collection/UIG via Getty Images)

Properties & Paradise is a top-rated real estate agency in Miami Beach Florida. Our agents are trained professionals representing real estate for sale in Miami Beach and surrounding areas. Whether you are looking for a luxurious beachfront condo, an affordable loft, a first home, or an upgrade for your family, we can help get you into your dream home in Miami Beach.

Search For Real Estate For Sale in Miami Beach

At Properties & Paradise, we represent all types of real estate for sale in Miami. We have luxury real estate listings for all of the well known high-end buildings in Miami and Miami Beach. We also always have some exclusive properties, as well as a feature that lets you search listings by neighborhoods. If you are looking to rent, our site has a rental section to help you find what you need. Otherwise, use our search feature to hone in on the exact property you are looking for.

In addition to our team’s expansive knowledge and experience in residential real estate for sale in Miami Beach, we are also skilled in handling commercial real estate transactions in Miami. Our seasoned Commercial Practitioners’ local market knowledge is unparalleled. Check out our current commercial listings. We look forward to the opportunity to partner with your business, or with you personally as an investor. Our agents can help make the process easy for you. They are skilled in navigating the maze of commercial real estate regulations.

The Properties & Paradise Team

At Properties &Paradise, we only hire the best agents. Our agents are trained professionals in many different types of real estate transactions. If you are looking to buy, sell, or rent real estate in Miami Beach Florida, look no further than the team at Properties & Paradise. You will be in great hands with any one of our agents. They are trained to get you a great deal while making the process as easy as possible!

Why Properties & Paradise?

When you choose to work with a Properties & Paradise agent, you are choosing to have a dedicated helper on your real estate journey. Unlike with the large real estate sites like Zillow or Trulia, if you contact us with an inquiry on property value for real estate for sale in Miami Beach, we have knowledgeable agent’s ready to make a personalized estimate based on years of experience and real, up-to-date market knowledge. We don’t leave it up to a robot to make those recommendations, we use what we know and we know this market like the back of our hands. Don’t leave it up to chance by contacting a random agent. Check out our market data now to start on the road of making a more informed real estate transaction, and then contact an agent from a team that you can trust. 

 

Contact Us Today

Miami is not just a city, it is lifestyle. The agents at Properties & Paradise understand that, and they know this market forward and backward. When you work with Properties & Paradise you get the advantages of an international organization while still benefiting from the local knowledge of a successful Miami real estate agency. Whether you are looking to buy, sell, or rent in Miami Beach or the surrounding areas, look no further than the Properties & Paradise team and contact us today. Properties & Paradise – outstanding agents, outstanding results.

 

0 Miami Real Estate Market: Correction, Not Crisis

Posted on by

miami real estate market

Amidst rising inventory, political changes, and general uncertainty, there has been much speculation around whether the Miami real estate market is heading into a crisis. Looking at all of the factors at play, it is fair to say that the market is in for a price correction, but we are far from talking about a crash. As Anthony Graziano of Integra Realty Resource puts it, “ there’s no distress in the market right now. I think a lot of this pricing correction right now is really just a function of good old supply and demand — and I think that’s good for buyers.”

Influx of Inventory

So why is the price correction in order? There has been an increase in supply in both the condo sales and rental markets because of all of the new construction. There have been and will continue to be a lot of units hitting the market in the coming year as construction comes to a close.

This is particularly true for luxury condos. One of the ways to gauge the health of a real estate market is to look at the ‘months of inventory’ which is the number of months it would take to sell all of the properties currently on the market. Luxury condos in Miami-Dade are currently at a whopping 55 months of supply.

Inventory is pretty high all around with 20 months of condo inventory in Miami and 24 months of single family home inventory in Miami Beach.  In some cases, the increase of inventory is leading to price decreases in the Miami real estate market as the supply and demand level back out.

Some condo owners looking to sell their properties are not willing to accept lower prices, and so they are opting to rent out their units instead. This is, in turn, adding more competition to the rental market. A report found that there are also 4,900 rental apartments under construction downtown, in addition to 1,000 that were produced last year. These two aspects combined are helping to create a very competitive landscape in the Miami real estate rental market.

There is an influx of inventory in the Miami real estate market right now, but it is not the start of another housing crash. Patricia Mazzei from miamiherald.com says that “despite the forest of cranes in downtown, the total number of condo units is far lower than during the boom prior to the Great Recession. About 12,300 new condos are expected to be completed in downtown between 2014 and 2019; between 2004 and 2009, more than 21,000 units were delivered.”

Three Reasons The Miami Real Estate Market Is NOT Heading For A Crash:

1. Banks Have Learned Their Lesson

This isn’t 2008. You can’t buy homes for 125% of the purchase price and actually get cash back rather than making a down payment. As Sep Niakan puts it on marketwatch.com, “we are past the days of lenders handing out no-documentation zero-down-payment loans.” Mortgage regulations are much more strict than that now. A 20% down payment is standard, and low 3% down payment options are reserved for qualified low-income first-time home buyers looking to build some equity.

Regulations have also changed for the pre-construction Miami real estate market. Pre-construction projects now have to sell units before they can build, and these sales are subject to the tighter lending regulations as well. According to Brian Bandell at bizjournal.com, “most of [Miami-Dade’s] condo buildings haven’t been approved for conventional Fannie Mae loan or FHA mortgage with low down payments.” This means that people have to come in with more cash down on these units. Jonathan Smoke, chief economist at Realtor.com actually expects the federal government to be more receptive in 2017 to programs that would ease credit for condo buyers.

In addition, lenders now require 50% of pre-construction units to be sold before they can start drawing on a construction loan. “They are very aware of what happened in the last cycle in 2008 and 2009. Those days are gone.”, says Taylor Collins, a partner with Two Roads Development.

2. Buyers Have Learned Their Lesson

The memory of the housing crash of 2008 is still fresh in the minds of anyone who lost from it and the whole country learned from that experience. The investors and buyers of today are in turn much more cautious. According to Robert Banting, president of appraising firm Anderson & Carr in West Palm Beach, “70 percent of the flippers are reportedly paying cash for their homes.” He goes on to say “there’s no irrational exuberance. We don’t see amateurs in the market.”  Dan Kodsi, developer of Paramount Miami Worldcenter and Paramount Bay says that “you will not see a mass sellout because these are not people who can’t make their mortgage payments. You will likely see these investor buyers taking their units off the market and renting them out.”

3. Population growth

Florida is the 3rd largest state in the South East based on population. It is also the 5th fastest growing state in the entire country, and the 8th most densely populated state according to countrydigest.org. More than 1,000 people move to Florida each day.

Miami, in particular, is an important destination for international investors. It is an international melting pot with a now more established culture. Miami population grew 10.4% between 2010 and 2015 according to worldpopulationreview.com and this trend is projected to continue.

Inventory might be high right now, but Miami is a strong market with international significance. Florida, and Miami imparticular, are still growing. This means that eventually, the supply and demand will even out and prices that were affected will recover.

Despite signs of a market slowdown, there are reports that sales and median home prices are actually up year over year. As the market absorbs the new influx of inventory, there will be some degree of a price correction, but it won’t be as extreme as some are projecting. The shift will just be to more of a buyer’s market. “There is more inventory on the market [in South Florida] than a year ago and prices haven’t fully recovered so it is more of a value play for buyers than other parts of the country,” according to Smoke.

If you are looking to buy or sell in South Florida, contact one of our knowledgeable agents to get started.

0 Miami Real Estate Trends

Posted on by

miami real estate trends

Amidst current political and economic changes, many people are wondering what Miami real estate trends we will see in 2017. With moderately rising interest rates, low risk of a housing market crash, population growth, and a rising trend in deregulation, the outlook for Miami real estate is strong in 2017.

Realtor.com predicted that South Florida will see sales volume increase 4.17% and price increase 3.98% in 2017. Look for increases in investment from the northeastern United States, as well as an increase in the number of Millennials in the marketplace as potential driving factors. Foreign investment and luxury home sales could fluctuate, but no major changes are predicted from these sectors in 2017.

 

Foreign Investment in Miami

A little more than half of Miami-Dade County residents are foreign born. The region is a melting pot, with residents and investors from all around the globe. Foreign investment plays a huge role in the Miami real estate game. It saw a dip in 2016 in part due to the strengthening of the U.S. dollar. If the dollar is to appreciate more compared to other international currencies, it could encourage a decrease in foreign purchases and incentivize foreign investors to sell these now appreciated investments. However, the U.S. market is strong in relation to other global markets, making it a safe place for international investments. With or without currency appreciation, investment in U.S. real estate is still beneficial and desirable to international parties.

There was much uncertainty surrounding the future of the housing market as we approached the 2016 presidential election. Some people were concerned about what the election of President Trump would mean for foreign real estate investment. Thus far, the politics are not affecting the housing market as much as expected. Much of the uncertainty has dissipated and the fundamentals that make Miami an attractive investment opportunity for foreign investors remain.

Trump’s stand on immigration does not appear like it will have a large impact on Miami real estate trends either. The typical South American investor is sophisticated and not normally adversely affected by immigration policies. For those that may want to migrate to Miami, investment visas are available as an option. Congress is to extend the EB-5 investment visa program which grants permanent residency to foreign investors who back developments that create jobs. Two other things that Trump may bring to the table are lower capital gains and income taxes. If achieved, this could actually encourage more South Americans to move to the United States.

 

U.S. Investment in Miami

While the fluctuation of foreign investment in 2017 may be uncertain, U.S. investment in Miami, particularly from the Northeast, is expected to increase. The strength of the U.S. dollar has affected Miami real estate trends for luxury and foreign sales over the past year, but Miami holds strong investment potential within the United States.  Capitalization rates and interest rates currently have a pretty wide spread. This is sending more high net worth investors from across the U.S. to Miami. Aaron Kurlansky, principal of FM Capital says, “we are seeing a lot of guys exiting properties in New York to double down and plant roots here. These people are longer term investors who want to manage their wealth. They are seeing that they can own 200 units here for the same price of 100 units there.” 

 

Millennial Home Sales on the Rise Nationwide

As Millennials are entering their main home purchasing years, the U.S. is expecting to see increases in Millenial home sales. These increases may be more modest in South Florida where young buyers represent a smaller portion of the housing market.  According to Jonathan Smoke, chief economist at Realtor.com, in 2016 buyers under age 35 accounted for 29% of home purchases in South Florida versus 38% nationally. This can be mostly attributed to the large amount of investment purchases and retirement communities in South Florida.

Nevertheless, buying is 43% cheaper than renting a home in Miami-Dade County, which is attractive for first time home buyers who are facing high rents in the Miami area. This may bring more first-time home buyers to the South Florida market than in previous years. Similar real estate trends are being seen in other large cities, leading to potential increases in first-time home buyers nationwide. Renting will also continue to be an attractive offer for Miami Millennials. As renter-focused development projects make their way down the pipeline, it may even become a little more affordable.

 

2017 is looking to be a stable and steady year for Miami real estate trends. When it comes time for you to make a move, make sure you consult with an expert. Our agents at RE/MAX Paradise can help get you where you need to go. Reach out to us today to get started buying, selling or renting in Miami.

0 Brazilian Investors in Miami Real Estate

Posted on by

brazilian investors in miamiBrazilian investors continue to show strong interest in Miami real estate, according to Bloomberg.com. Many Brazilian investors in Miami have owned second homes here, and more are coming because of better economic conditions than in Brazil. The country has been in an economic crisis, causing unstable rent prices. In the US, however, real estate has been resilient and remains a smart investment.

“Everybody is renegotiating rental contracts down and not up” in Brazil, said Alessandra Ourique, a partner specializing in real estate at Hesketh Advogados law firm in Sao Paulo. “Not to mention defaults.”

According to the Miami Association of Realtors, Brazilians were third among foreigners searching for Miami real estate. While Brazilians have loved Miami for a while, the difference now is that they have become property investors, not just home owners. Co-investors are coming together for multifamily buildings.

“That has become really popular, especially in Miami,’’ Reis’s Severino said. “If you are a wealthy individual, instead of buying one condo for that amount of money, you contribute with some other wealthy people into a fund. And then all of a sudden, instead of you just owning a condominium that sits empty for most of the year, you have a share of a rental stream from larger multifamily properties that start paying income right away.’’

Daniel Ickowicz, a partner at Elite International Realty, said in Bloomberg’s article that South American investors are fond of triple-net leases, in which the tenant is responsible for insurance, maintenance and and taxes in long-term contracts.

As exemplified by the many Brazilian investors in Miami, the city is an amazing place to buy a piece of real estate. Clearly popular with foreigners too, the city has world class amenities Whether you also are looking for a commercial spot, or a residential home, RE/MAX Paradise has great options throughout the city.

0 Miami Condo Prices Up in July

Posted on by

miami condo pricesAccording to recent data by the Miami Association of Realtors and World Property Journal, median sale prices for existing homes in Miami was up in July. In particular, Miami condo prices were up 15.4 percent to $225,000. Out of the last 62 months, these prices have gone up 60 months. Prices of existing single-family homes rose 7.9 percent to $299,000.

“A world-class global city with a diverse economy, Miami has seen consistent residential price growth in the last five years,” said Mark Sadek, the 2016 MIAMI chairman of the board. “The price appreciation is not only giving Miami homeowners the confidence to sell their homes, but it’s allowing some to use the sale of their home to buy a larger property in the area.”

However, don’t confuse rising prices with expensive property. Miami is still an affordable city and a bargain compared to other cities: “A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900 on average, according to the National Association of Realtors (NAR). London ($960,840), Hong Kong ($776,280), and New York ($1.6 million) prices are at least five times higher,” wrote World Property Journal.

The national median sales price was up in July for all housing types. It rose to $244,100, up 5.3 percent from July 2015. In the Sunshine State, median single-family home price $223,238, up 11.6 percent from last year. Clearly, real estate is a strong market.

Miami’s population and economy are continuously growing. To keep up with high demand, there are homes under construction. The article said that fifty-four condo towers with 5,319 units have been completed in Miami-Dade County east of I-95 since the start of 2011.

If you want to live in a city with world-class amenities along with a booming economy, then Miami is your place and now is your time to buy. The fact that Miami condo prices and other real estate prices continue to grow show the economy’s strength. At RE/MAX Paradise, we have amazing condos available and other homes available all throughout the city.

0 Many Florida Renters Can Afford to Buy

Posted on by

Many renters struggle to decide if buying a home is worth it. A recent study found that in many cities, Florida renters should buy. This research by the National Association of Realtors, covered in an article by Florida Realtors, found that there are affordable metro areas with above average hiring and renters with high enough income to buy.

“Even in a time of expanding home sales, steady job growth and historically low mortgage rates, the homeownership rate recently tumbled to its lowest level in over five decades as many renters struggle to juggle escalating rents without commensurate income gains,” Lawrence Yun, NAR chief economist, says. “However, this new study reveals that there are several affordable, middle-tier markets with solid job gains and a large segment of renters who earn enough to buy.”

The study found that 18.5 percent of renters in Miami should be able to afford buying now. Yun said that many areas where renters can now buy are in the South. Median existing home prices are low in the South, and improvements in local labor markets are at or above national average rates.

“Overall housing affordability and local job market strength play a pivotal role in a renter’s decision on whether to buy a home or sign another lease,” says Yun. “The good news is that other recent NAR survey data shows that those residing in the two regions were the most likely to say that now is a good time to purchase a home. With mortgage rates now at their all-time low, these identified markets are well-suited for the many renters financially capable and interested in taking advantage of the stability and wealth-building benefits owning a home can provide.”

If you are a renter in Miami, you may be among Florida renters who should consider buying. Contact a RE/MAX Paradise agent today who can help you find the perfect home to transition from renting to buying in Miami.

0 Great Time to Buy or Sell Real Estate

Posted on by

time to buy or sell real estateAccording to Jonathan Smoke, chief economist of realtor.com, it is currently a great time to buy OR sell real estate. That is great news! For the past few months, sellers have been very happy. High demand has led to high prices, and quick sales. Supply has been low, posing some challenges for homebuyers. However, seeing the benefits, more homeowners are selling, and that means good things for buyers.

Fannie Mae’s National Housing Survey from April showed that 52 percent of respondents said it was a good time to sell a home. According to realtor.com, that was the highest it had been since the survey started in 2010. This is just one of many indictors that a lot of homeowners are selling right now.

“But here’s the reality: Selling a home is usually just the first (critically important) step in the process of buying another home. We find that more than 85% of today’s sellers indicate that they also intend to buy. So while they’re adding to the inventory of homes for sale, they’re also dipping back into it,” wrote Smoke.

Smoke also noted the top five reasons for selling a home right now: want to be in a different neighborhood, need a home with different features, need a bigger home, want better location, and need to lower cost of living.

“Since mortgage rates have declined and stabilized at multiyear levels this spring, we’ll look back in a few years and realize what a unique window of time this was. Households that can indeed successfully sell and buy this year should improve their housing situation while locking in the lowest possible costs,” Smoke wrote.

If you are either a seller or buyer in Miami right now, you should be happy! For several reasons, right now is a great time to buy or sell real estate. We are excited to help you with either today at RE/MAX Paradise, so contact us now!