By Sunny Isles Real Estate Expert on June 19th, 2012
Considering the fact that real estate markets have been slow for the past few years, it is definitely good news to know that home values are not just doing well in the Miami Florida area, but also they are hot. Home sales in Miami are getting so hot that there are even bidding wars taking place, which is obviously driving the value of the homes up dramatically. This kind of rise is excellent news for the Miami real estate area.
A few examples of this home value boom can be seen in the following. In Coral Springs, a single condominium, which was bank owned, did not just get purchased. In less than two weeks, more than sixty offers were made on the condo and it ended up selling dramatically over the price at which it was listed. A condominium that would have been lucky to even sell a few years ago sold for way over its expected value.
Another good example of the rise would be seen in Broward County. In the past year, the average sales value has risen by more than 15%. In the case of condominiums in Broward County, the value has jumped more than 17%. The values are even more dramatic in Miami-Dade. In fact, for condominiums in the city, the value has jumped a whopping 30%. These percentages and information has been reported by the Miami Association of Realtors.
Bidding Makes the Price Go Up Luxury Miami Water Front Homes
Why is the selling price going up for the luxury homes in Miami? The answer all has to do with bidding. People are becoming more and more comfortable with purchasing property; they are more willing to step out and making a bid. Before, a home may only get a couple of bids, but that has changed. Now, bidding wars are driving the selling price of homes in the area up immensely. The reason for the bidding wars is simple as well. More and more people are buying. That means fewer and fewer homes are available on the market. When demand goes up and supply goes down, the value of homes will jump accordingly.
One very interesting thing to note would be the number of international buyers looking through the market in the Miami-Dade area. In fact, more than half of the sales in the area were through international buyers who paid 100% in cash. These all cash buyers are more willing to buy for higher prices and get involved in bidding wars that lead to higher home values.
The vast majority of homes that are being purchased in the area are distressed home and foreclosures. This has to do with the past economic downturn that was leading to a larger number of foreclosures on the market. While the home values are going up and home sales are increasing, realtors still indicate that the market is inundated with foreclosures.
With statewide sales prices rising and with the Miami market jumping immensely, it is expected that the home values will continue to rise in the coming months.