By Sunny Isles Real Estate Expert on June 8th, 2012
Today The Miami Herald posted an article by Douglas Hanks about the amazing turnaround for Miami condos. when everyone expected far worst consequences from the national housing crash with Miami real estate leading the way. You can read it below or follow this link to the original article: http://www.miamiherald.com/2012/06/06/2836413/miami-condos-amazing-turnaround.html#storylink=cpy
Half of a decade after the American housing market bust, sales and prices of new and previously occupied homes have dipped significantly. This spring; however, there are many reasons to be optimistic about the direction of the housing market and the economic recovery. Figures that have been collected on recent home buying indicate that the housing market is resurfacing and that the recovery is well underway, even though it has not been completely realized yet.
Dennis Lockhart, president of the Federal Reserve’s Atlanta division, expected far worse from Miami real estate. “In 2008 and 2009, what I was hearing was condo towers essentially being empty’’ in downtown Miami, Lockhart told a Broward County business group Wednesday morning. A recent survey shows something far different: about 90 percent of Downtown Miami condos are either rented or occupied by an owner.
“It’s an amazing turnaround,” Lockhart said.
Lockhart’s comments to the Broward Workshop capture a recurring theme for one of the most battered and bashed housing markets in the country. After years of national attention for an ill-fated condo boom and epic housing crash, South Florida’s recovery has caught some people by surprise.
“When someone says something good about Miami, you get some head scratching,’’ said Mark Vitner, who follows the Florida economy for Wells Fargo. “People are surprised at how quickly things have turned around in Miami.”
With record-low mortgage rates and drastically reduced prices, the real estate market has been primed for buyers over the last several years. The higher rent costs that are being seen on the market and an improving job market has given people reason to consider buying instead of renting, which is one reason that the housing market is showing promise and signs of recovery.
While many people are seeing prices at record lows, many are convinced that these prices have bottomed out and will not continue to fall. In some areas, home prices have already begun to rise, and this may be prompting more people to get into the market now while the prices are still low. Confidence in the real estate market is also on the rise according to a recent study, and this may encourage more home sale in the future.
Cash buyers from Latin America and Europe get most of the credit for Miami’s real-estate bounce. “Strengthening sales, mostly from cash buyers and investors, were noted by most Florida contacts,’’ the Federal Reserve reported Wednesday in its latest Beige Book report on the national economy.
But those foreign ties could make this a rougher year in South Florida than elsewhere in the country, as Brazil’s slowing economy and Europe’s potential financial meltdown threatens to upend Miami’s advantages.
Potential homebuyers have been very fearful about the direction of the economy, and home sales have been stifled because people have been weary about job creation, the stability of the economy, and many other factors that have influenced their decision to buy a home. Renting has been a much more desirable option for people during the past few years, but that is beginning to change as rent soars and home buying prices are considerably low.
The Miami real estate market took an unexpected leap in January and February, many believe due to the mild weather conditions that were experienced all over the country. These figures suggest that more people will be entering the home buying market in the coming year and taking advantage of the record low interest rates and reasonable home prices. While home prices in some areas continue to drop, home prices are beginning to creep upward again which may encourage more buyers to get involved in the market now.
As the real estate market continues to show signs of promise and recovery, homebuyers can take advantage of reasonably priced loans and low interest rates.