The Real Estate in Miami is experiencing a total "Buyers" market right now. A famous online encyclopedia describes a “Buyers Market” as “market relations between prospective sellers and buyers of a good. The supply and demand model determines price and quantity sold in the market.”
Now that we have our fundamentals refreshed, let’s evaluate the correct opportunities in the Miami marketplace.
In the residential end the current amazing deals lie in the "defaults". The most profitable type of default is when buyers are unable to follow-through with their previous commitments to close on a ready-to-occupy unit. This commonly happens in brand new buildings. The big advantage for the new buyer is that since there is an excess inventory of properties in the market, the developer is selling these properties at 2004-2005 prices minus the 15% deposit that comes from the previous buyers abandoned down payment!
The next set of opportunities is in the "Owner Motivated" arena. These types of properties were priced right BEFORE the market correction, and they had continued to be available in the market mostly due to the resilience of their owners to lower their prices to today standards. It has come to a point that many of these property owners have experienced either financial difficulty, market panic or they just want to benefit from the “Buyer’s Market” as well and trade up to a larger, more expensive property. Whichever the case is, the new "priced to sell" inventories present themselves like a great opportunity to acquire prime Miami real estate in great locations at corrected prices. Motivated sellers are coming with great buyer’s incentives, such as boats or cars included with the property and sometimes even with a positive rental income that pays for the expenses!
Is it better to buy or to wait a little longer?
Sometimes speculation leads to a better profit margin. But, speculation is also a risky business. A lot of investors could be speculating at the same time about the right moment to buy real estate in Miami. When the market turns around the buyer’s frenzy will boom again. The buyer's incentives, most of the defaults, the “Motivated Owner”, the "By Owner” financing at prime rates, etc. will be long gone. Most important, real estate is all about location and right now you can select the right location and the best property with ease. Unless of course, you are a pro and are willing to wait a little longer and fight with the pack of wolves for your dream property in Miami in the near future.
Saturday, March 29, 2008
Wednesday, March 26, 2008
Miami Market Trends
In the past years Miami Real Estate has been "Bombarded" by negative media articles. While “bubble talk” may seem old news for us in the domestic market, the sequels of such massive effort to discredit Miami “Manhattanization” are still reaching foreign countries and delaying the stabilization of the real estate market.
The majority of property prices in Miami have not really decreased in price from their original prices and homeowners are still holding record level equity on their homes. The new property prices just reflect a market correction. The market saturation has increased the inventory to historic high levels, which contributed to the market slow down. There is no doubt that the market will absorb this inventory in the next 12-18 months due to the high-volume migration of people to Miami-Dade.
Miami, the “Magic City” has been recently named on of the top ten cities of the future and by 2010, Miami is expected to have one of the largest skylines in the world.
Just like when the stock market goes south, panicking opens opportunity for savvy investors. In Miami’s current real estate marketplace, there are plenty of opportunities. From hard-to-get foreclosures and short-sales, to more accessible and easy to obtain ready-to-occupy defaults and early stage new construction opportunities.
Interest rates are coming down to historic low levels, but the real opportunity is to identify the best value for the right properties in the best locations.
What is going to be left in the aftermath of this real estate correction? A brand new and exciting city with brand new infrastructure, vibrant, urban-friendly Brickell and Downtown area, which will be both business and family friendly. And then the prices will soar. After all, infrastructure is what makes real estate value increase.
Finding buyers for your property in today’s marketplace can be tricky, however a professional, well seasoned Realtor should be able to help you identify and attract clients from current Florida main market feeders, such as Canada, Italy, Spain and UK. These countries are already knowledgeable about Miami and have a currency exchange advantage.
Buyers in today's market place are looking for value, which is not only reflected in the price that they pay for the apartment but also the ability of the property to be rented and produce an income to help carry the expenses. That is the reason why waterfront properties in good locations with easy accessible infrastructure will always represent an attractive investment for second home buyers.
The majority of property prices in Miami have not really decreased in price from their original prices and homeowners are still holding record level equity on their homes. The new property prices just reflect a market correction. The market saturation has increased the inventory to historic high levels, which contributed to the market slow down. There is no doubt that the market will absorb this inventory in the next 12-18 months due to the high-volume migration of people to Miami-Dade.
Miami, the “Magic City” has been recently named on of the top ten cities of the future and by 2010, Miami is expected to have one of the largest skylines in the world.
Just like when the stock market goes south, panicking opens opportunity for savvy investors. In Miami’s current real estate marketplace, there are plenty of opportunities. From hard-to-get foreclosures and short-sales, to more accessible and easy to obtain ready-to-occupy defaults and early stage new construction opportunities.
Interest rates are coming down to historic low levels, but the real opportunity is to identify the best value for the right properties in the best locations.
What is going to be left in the aftermath of this real estate correction? A brand new and exciting city with brand new infrastructure, vibrant, urban-friendly Brickell and Downtown area, which will be both business and family friendly. And then the prices will soar. After all, infrastructure is what makes real estate value increase.
Finding buyers for your property in today’s marketplace can be tricky, however a professional, well seasoned Realtor should be able to help you identify and attract clients from current Florida main market feeders, such as Canada, Italy, Spain and UK. These countries are already knowledgeable about Miami and have a currency exchange advantage.
Buyers in today's market place are looking for value, which is not only reflected in the price that they pay for the apartment but also the ability of the property to be rented and produce an income to help carry the expenses. That is the reason why waterfront properties in good locations with easy accessible infrastructure will always represent an attractive investment for second home buyers.
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