Miami-Dade County home sales continue to break records. September 2021 has been our best September sales month ever! In addition to that, the close of September has registered 2021 as […]
According to Craig Studnicky, principal of Miami-based brokerage ISG World, the condo market has been pretty stable for the past two to three years. Even with many people relocating to […]
Miami-Dade County home sales continue to break records. September 2021 has been our best September sales month ever! In addition to that, the close of September has registered 2021 as the best annual total Miami condo transactions, with three months of 2021 remaining to include.
This leaves many realtors, buyers, and sellers asking us questions like: “How come the South Florida Market keeps getting stronger?” and, “How long will this buying frenzy last?” To answer these questions, we need to look at what is going on in the market right now.
Miami and South Florida have always been a desirable location to move. We have great weather year round, and the price per square foot is significantly lower compared to our Global Competitors such as: New York, London, Geneva, Hong Kong and Monaco.
Though there are a slew of reasons for the South Florida and Miami-Dade real estate market boom, almost all of them can be attributed to a post-COVID world. Increased acceptance of Remote Based Employees allows people to get top paying jobs in states Like New York and California, while working from anywhere they like. Unlike many other states Florida opened as quickly as possible after lockdowns.
For those who are not at high risk and want the freedom to move around, it makes the sunny beaches and year round warm weather even more appealing for a remote work location to live. Especially when they do not have to sacrifice their income to live here.
As long as prime rates stay down and rent prices keep going up, buying a new home for South Florida locals is a smart investment.
Every week more companies are either moving their headquarters or opening a regional office here in South Florida. This is likely due to Miami’s proximity with Latin America as well as filling the demands of the increasing population here in South Florida. With more companies moving here, it creates more jobs which brings even more people moving here for work opportunities.
Foreign Buyers have been known to fuel buying frenzies in years past, especially in the Condo sector. However due to travel restrictions foreign buyers have been minimal since COVID lockdowns began. With travel restrictions loosening for International Travelers in November of this year, we are likely to see an increased participation of foreign buyers in our booming real estate market
One of the only things keeping this current market from exploding even more is lack of inventory. Although the lack of inventory does help to drive the prices higher as current buyers have to compete over the available inventory, many times leading to bidding wars and sellers receiving much over asking than expected.
End of the year leading into the holiday season it is typical to see reduced inventory, with more inventory becoming available again at the beginning of next year. Experts predict that 2022 will follow the same trend as potential home sellers become more comfortable listing and showing their homes. Plus the number of homeowners in mortgage forbearance will drop and likely bring more inventory to the market as well.
With all these factors in play, South Florida remains as one of the most desirable places to move globally, and we are likely to see this trend continuing for some time at least well into 2022 if not longer.
We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.
According to Craig Studnicky, principal of Miami-based brokerage ISG World, the condo market has been pretty stable for the past two to three years. Even with many people relocating to south Florida, condo prices per square foot have remained the same.
Though the average sales price rose, according to Studnicky, that was mostly due to the fact buyers were buying larger units than seasons before.
However, Studnicky says the trends are looking to a stronger market for sellers by the end of 2021.
Dwindling Inventory
Of the 19,465 Condos that were either recently built or under construction in eastern Miami-Dade and Broward county, only 881 units (4.5%) remain unsold in the market, according to ISG World. Compared to December 2020 (1,324 units unsold), the first half of the year has already depleted the available inventory by one third.
According to Studnicky, based on market trends, local condo inventory will continue to dwindle.
Still Under Construction Almost Sold Out
New condos are mostly getting bought up before construction is even complete.
The Elysee in Edgewater, the Estates at Acqualina, the Monaco Yacht Club & Residences in Miami Beach and many other condo buildings under construction are over 90% pre-sold.
Interestingly enough, the recent uptick in condo sales was not international buyers, but rather mostly led by domestic buyers. This was likely caused by Covid-19 travel restrictions and the strength of the US Dollar, which reduced the amount of Latin American buyers compared to past years.
Champlain South Tower in Surfside in June.
The collapse of the Champlain South Tower in Surfside was a tragic event for all the families and friends of the victims as well as our community as a whole. This has led buyers to steer away from purchasing condos in older buildings. Though inventory was already low, of the 12,382 units available in the tri-county area during the second quarter, almost half of them were built on or before 1990. Currently local governments are forcing building owners to do the maintenance and restoration work. Nonetheless, buyers are leaning towards newer units. Which means only half the available inventory is being considered by a majority of buyers.
We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.
Miami Real Estate Market is On Fire, But Will it Burn Out?!?
UncategorizedMiami-Dade County home sales continue to break records. September 2021 has been our best September sales month ever! In addition to that, the close of September has registered 2021 as […]
South Florida Condo Market Post Surfside Collapse: What should you expect?
UncategorizedAccording to Craig Studnicky, principal of Miami-based brokerage ISG World, the condo market has been pretty stable for the past two to three years. Even with many people relocating to […]