The Magic City real estate scene remains as hot as the weather and the people it thrives on, proving this is still place to be. And here`s some reasons why:
Rates remain at historical lows, giving some buyers more purchasing power, than they had in the past.
According to The Wealth Report 2016 by Knight Frank, $1 million will buy only 17 square meters in Monaco, 27 square meters in New York, 57 square meters in Paris, or 65 square meters in Los Angeles. But it will buy 77 square meters-about 829 square feet-in Miami. "That`s a tremendous opportunity to still capitalize on a market that is grossly undervalued as compared to other major metropolitan markets around the world," says Jay Parker, chief executive officer of Douglas Elliman`s Florida brokerage.
Most brokers will tell you that a lot of potential buyers remain on the sidelines, waiting to see if prices will drop before jumping into the market. That translates into a lot of cash to spend. "I believe we have more pent-up demand from luxury buyers than we`ve ever had," says Shuffield. "There is so much cash in the market-more than I remember-that wants to be spent on luxury housing in our community."
Despite rising inventory levels and new-construction projects coming online, we aren`t likely to experience the same oversupply issues that we did during the financial crisis of 2008. That`s due to tougher requirements by banks providing construction financing. "Financing is only available if somebody can gain 50 percent sales with 50 percent deposits, give or take," says Richard LeFrak, chairman and CEO of the LeFrak Organization. "So you`re not going to see a massive buildup of inventory."
Fewer buyers are coming from Latin America, but other countries are making up the difference. "Last year alone, we sold close to 3,000 condos to 92 different nationalities," says Carlos Rosso, president of the Condominium Development Division at The Related Group. Easier access by air to Miami is now attracting buyers from Turkey and other countries. Some currencies are also strengthening against the dollar, giving international buyers more purchasing power. David Martin, president of Terra, says that international investors have slowed, but relocations from Latin American end-users are on the upswing. Ugo Colombo, founder of CMC Group and the developer of Brickell Flatiron, says he`s seeing buyers from Latin America, Europe, Turkey, and even Kazakhstan.
This is a good thing. Jill Hertzberg, who with her partner Jill Eber makes up "The Jills" team at Coldwell Banker, advises sellers to price "close to the market." "Sellers have finally realized that it`s time to bring prices down to reality," says Eddy Martinez, CEO of Worldwide Properties. "Sales have been produced as a result."
We are transitioning to a buyer`s market, It`s a great time for buyers to buy something beautiful. The inventory is fantastic, and prices are more negotiable across the board.
The best thing about the Miami real estate market is Miami itself. People from around the world still want to dine here, visit here, shop here, and live here. "There is no other place like Miami, and therefore it is always going to be a desirable place to live, work, and raise a family," says Vladislav Doronin, chairman of OKO Group, the developer of Missoni Baia in Edgewater. "I have owned a home in Miami for many years and have enjoyed watching it grow into a world-class city. The weather and the lifestyle cannot be matched."