For the 11th consecutive month, sales in the Miami area housing market continues to rise. This is a direct result of absentee buyers and overseas investors seeing the advantage of scooping up many of the deals offered in the local home real estate market. The average price paid for a Miami luxury homes has risen over 14% in the last 12 months. This is just one more indicator of the nearly 18 months of consecutive increases in the housing market of Southeast Florida.
Even sales month-to-month are on the rise. March sales on new and resale homes and condominiums rose significantly, to nearly 19% over February sales. There is also a significant rise in the number of sales from the previous year, up over 7%. While it is typical to have higher generated sales during both February and March, there is a significant change in the overall market, as demand continues to rise.
Continuous Sustainable Real Estate Growth
It was not that long ago when Miami served as the poster child when the bubble burst in the housing market. The entire real estate market in southeast Florida seemed to be the last to respond to the nation’s devastating recession beginning in late 2007. However, since then the numbers in both demand and prices are beginning to look up. While many “experts” believe that these rising numbers are nothing more than smoke and mirrors, there are indicators that the higher demand for housing in southeast Florida is real, and can provide a continuous, sustainable growth.
Many of the naysayers are indicating that over six out of 10 homes purchased in southeast Florida are bought by institutional investors, absentee buyers, and those looking to put their money in a solid real estate market in the US. Supposedly, many of these investors are purchasing homes in large numbers with the desire that the real estate values in southeast Florida will remain on the rise. Some of this might be true, in that there is a growing need for rental properties that can be supplied by these absentee buyers.
Either way, the news is great for the local economy. The stimulation of outside money, and the sales of many condominiums and homes that have at empty for years, can finally be filled. This will help increase local taxes, and bring new energy into many communities all across southeast Florida.
What Is Next?
While the price for a single-family detached house, per square foot, rose more than 17% from the year earlier, it might make it more challenging for the first-time homebuyer to achieve the American dream. This at least might be true in the Miami area.
However, with local developers eager to restart new home construction, the supply might quickly overcome the demand, and once again lower home prices. This in effect will reverse the situation, and make it affordable for nearly anyone eager to purchase a home to do so.
The Miami real estate market proves to be on the rise, with the come back from the recent recession finally beginning to show progress.