Yet another month sees a rise in the sales of new homes in the country suggesting that the market is recuperating albeit at a slow pace. The rise from April to May is 7.6%, according to the Miami Herald, and it is the highest rise since 2010. These are the numbers for the overall country, but here in Miami we can see a similar trend. Over 1,400 condos were sold in Dade County in April but in May over 1,500 sold in the same area.

Brickell and the Downtown Area a Hot Spot

"New condos in Miami are in demand" says Ethelbert Bascom CEO of Florida Home Sales and Investment" and we can see that in the new development plans in Brickell and downtown Miami, for example." He adds that by making the areas more consumer friendly by planning new retail projects that will greatly benefit the future home owners in the area. New condo towers are on the horizon in the area, and already this area is getting more sought after by investors and homebuyers alike. "We see that all deals are being swept up in the area" and prices are slowly rising. However, that being said, this applies mostly to newer buildings and older properties need to be competitively priced to have a fast turnover, he adds.

Broward County Also Sees a Rise in Sold Properties

Paul Owers at the Sun-Sentinel reports that sales have risen in Broward County as well, claiming that the market is showing strong signs of recovery, as the numbers show steadily since the fall of 2011. However, sales in Palm County went down a little in May but the prices have gone up at the same time, showing, according to Owers, that the market is getting more stable.

South Florida Market Appealing to Foreign Investors
"Here at Florida Home Sales and Investments, we are still working a lot with foreign investors, who see both the market here as a good bet for investment based on its history of fast revenue and the rising rent prices, "says Ethelbert Bascom." It doesn‘t miniminze the interest if the currency ratio is favourable."

Foreign investors have been sizing up the condo market in Miami in recent months and according to Ethelbert Bascom, the president of Florida Home Sales and Investment (www.floridahomesalesandrentals.com), the housing market is also picking up. „There are more houses and townhouses being built right now than at the same time last year, he says, and adds that this shows that the market is picking up considerably. „But we welcome all positive news of the market,“ he says and adds that there are a few signs of positive developments in Miami right now.



Good profits with high returns

South Florida has always had a strong investing market for foreign investors who see the sunshine state as ideal for investment with the steady demand for Miami condos and good profits from high returns. „As long as people see the area as a good investing option they will come back and the returns will be good,“ says Ethelbert Bascom.

It‘s always good to hear positive news about your neighbourhood. According to the last Case-Shiller Home Price Indices, which was published on the 24th of April, prices have risen in South Florida as opposed to most of the country that is still seeing declining prices. The rise in percentage is 0.6% real estate prices in the Miami area and it makes Miami one of only 5 cities in the US to see a positive growth as of this year. Leading the growth is Phoenix with 1.2% rise in real estate prices, but the worst decline in prices can be seen in Atlanta GA.

Confidence in the market growing

 

Ethelbert Bascom the CEO of Florida Home Sales and Investments says that it‘s clearly visible that there is more belief in the market and people feel like they‘re finally getting out of the real estate crisis here in Florida. „Prices are getting higher, at least the listing prices,“ says Bascom and says that condo sales in Miami are rising and that the prices have gone up quite a bit. „It looks like we saw the bottom of the crisis in 2011, and there is a lot of people checking out the market right now.“

Condos on the rise

„We‘re seeing a lot of interest in many of the newer condo buildings in Miami“ says Bascom, who claims that the fact that Florida is recuperating better than most might be due to the second home market that has always been a big clientbase in Florida. „In many cities the overall growth of the community is vitally important to the wellbeing of the real estate market. But here in Miami, we have both the second home buyers, who are not as dependent on the overall prosperity of the community and then the retirees, who come here for the warm weather, and are also not dependent on variety of jobs in the area. Both of these groups are mostly investing in condos in Miami.“

Real estate near Marlin Park not picking up yet

 

Another fact that might be explained by the special market situation of Miami is the area around the new baseball stadium Marlin Park. The area close to the famous Littla Havana area was predicted to pick up considerably as a result of the Park, but yet it hasn‘t. „Marlin Park will ultimately appeal mostly to local residents, not necessarily the second home buyers,“ says Bascom, who thinks that is the reason why sales in the area haven‘t picked up as much as people had hoped for. „Here we have other factors as well - factors like jobs, schools, services and other things that are important to a local resident who is both living and working in the area. This is quite an old area as well, and many properties in need of renovation. However, I believe that the Marlin Park will increase interest in this area making it eventually popular, but it will take more time.“

 

The property market in Miami is picking up considerably. Realtors have been seeing more action on their listings and there is clearly an increased interest in the residential Miami market. Not only are there positive signs of individuals willing to invest again in the Miami market, but lenders - both local, national and international - are now bringing in their money, resulting in a better climate for real estate in the area.


New condos in Miami

According to the Miami Herald there are at least 24 new condo towers being planned, most of which have been financed in the last 6 months. The majority of these new condo projects are funded by lending money from various banks. This is good news on many levels for the Miami area. A big financial input into the real estate market will kick-start a more apparent sign of recession recovery in the area, and once again construction workers will be enjoying full time employment after a hard hit. This is clearly a sign of the market getting back to normal after the financial meltdown in 2007.

Some of the lending money is signed for the new condo buildings, but contractors are also buying up condos in Miami in bulk, banking on the area coming back to its former prosperity.


Bankers on the market

With both an increased financial input through lenders on the market, the regular buyer is also on the move. What has changed, however, is that the foreclosures which were the bulk volume of sales in the last two years have been going significantly down, and prices have been rising quite a bit in the regular residential market.

However, there is a wild card on the horizon. According to the Miami Herald a new surge of foreclosures might come again on the market in 2012, if the banks decide to sell the rest of their properties gained through foreclosures. If that happens prices might go down a bit until the surge dries up.


Still a buyers’ market

Until now, foreclosures have dominated the market in the last 3 years. Investors and bulk buyers have been trying to get properties for a fraction of their regular price and with many distressed properties on the market it has been a buyers’ market. But this might be slightly  changing, and realtors are seeing less and less “killer deals” on the market, resulting in a shortage of foreclosure listings. This situation has also been the driving force in higher prices, since the demand has outdone the supply. Sellers are seeing the opportunity with the rising prices, although the South Florida home sales market is still very much a buyer’s market.