Miami Penthouses

There is good news for the real estate market in Miami. More people than ever before are searching, buying and leasing properties. With the recent boom in the housing market, this isn’t a surprise, and the good news is that the outcome should be positive for the long term. A great way to see the positive impact of the market upswing would be through the number of foreign buyers searching for properties in US.

The rate of foreign consumers searching for Miami real estate has increased in March 2013 according to Miami Association of Realtors. In March, Miami ranked only second to Los Angeles among the top 10 overall most searched US cities by non-U.S. consumers.

Miami moved up from fourth place in earlier rankings. Fort Lauderdale ranks eighth. If the Miami-Fort Lauderdale markets were combined, the ranking would be number 1. Here is the list:

1. Los Angeles
2. Miami, Fla.
3. Las Vegas, Nev.
4. Orlando, Fla.
5. Detroit, Mich.
6. Houston, Texas
7. New York, N.Y.
8. Fort Lauderdale, Fla.
9. San Diego, Calif.
10. Chicago, Ill.

“These results reflect the strong demand from foreign buyers and investors that exists for Miami properties,� says 2013 Chairman of the Board of the MIAMI Association of REALTORS® Natascha Tello. “It is interesting to see countries like India and Germany ranking among the top markets looking to buy or invest in Miami and South Florida. The Miami real estate market remains a mecca of global activity, differentiating us form the rest of the U.S. and fueling our vibrant real estate market.�

Nationally, the Miami-Fort Lauderdale area is consistently one of the top markets for most of the highest ranking countries searching for property in the U.S.

The top international searchers were from and they searched for:

• Canada: Las Vegas, Fort Lauderdale, Orlando, Detroit, Naples
• U.K.: Los Angeles, Orlando, Miami, Houston, Las Vegas
• Germany: San Antonio, Los Angeles, Cape Coral, Miami, Las Vegas
• Australia: New York, Los Angeles, Las Vegas, Houston, Detroit,
• Japan: San Diego, Alpharetta, Las Vegas, San Diego, San Antonio
• Mexico: San Diego, El Paso, Laredo, San Antonio, Las Vegas
• India: Los Angeles, Orlando, Chicago, Dallas, Houston
• Brazil: Orlando, Miami, Boca Raton, Fort Lauderdale, Miami Beach
• China: Detroit, Los Angeles, Irvine, Las Vegas, Orlando
• France: Chicago, Miami, Los Angeles, Miami Beach, San Diego
• Russian Federation: Los Angeles, Miami, Orlando, New York, Detroit
• South Korea: Las Vegas, Irvine, Los Angeles, San Antonio, Columbus
• Italy: Miami, Los Angeles, Miami Beach, New York, San Diego
• Netherlands: Los Angeles, Miami, New York, Houston, Las Vegas
• Switzerland: Miami, Las Vegas, Los Angeles, San Diego, Raleigh
• Spain: Miami, Los Angeles, New York, Las Vegas, San Diego
• Ireland: Los Angeles, New York, Orlando, Chicago, Miami
• Sweden: Los Angeles, Detroit, Parkland (FL), Miami, Fort Lauderdale
• Belgium: Los Angeles, Miami, Las Vegas, Naperville (IL), Orlando
• Philippines: Las Vegas, Saint Paul (MN), Indianapolis, Los Angeles, Henderson (NV)

For more information, please visit http://www.miamire.com/international/resources.

The luxury Miami condo market

has certainly seen new and good changes in the last year. This is most evident in the St. Regis Bal Harbour Resort & Residences, where millions of dollars traded hands when buyers purchased almost 200 condos in one year. In 2012 alone, when the real estate upswing began to take place in Florida, a total of $709 million was spent by those who purchased condos in this area alone.

By looking at a breakdown of the statistics, it is easy to see the positive aspects of the real estate upswing.

• 475,000 square feet of condo space was purchased.
• The average price paid for these condos was $1,480 per square foot.
• Some properties sold in individual transactions at up to $2,625 per square foot.
• Most units were sold between 1.4 and 13.5 million dollars.

What does this say for the real estate market in South Florida? It shows that condos are in higher demand and people are willing to pay higher prices to get premium properties. It wasn’t too long ago when this was simply not an option.

The average selling price now days is about 98% of the asking price. Currently more than a dozen new towers are proposed by national and international developers. That would add more than 1,000 new units to the Bal Harbour area. This will help to defray the growing demand for real estate in South Florida.

St. Regis Bal Harbour Condo

comprises of three different towers as a part of the St. Regis Bal Harbour community. This includes more than 200 different condo residences. The resort also offers such amenities as:

• Four swimming pools
• A spa
• A selection of restaurants
• Private beaches
• A selection of habour shops
• A variety of different homes, including condo-hotel units, condominiums and a full service hotel.

More than $700 million changed hands in 2012, and real estate experts suggest that the numbers will go up in the coming year. This means that more developers will look to build in the area. Additionally, the price to rent or purchase condos will continue to go up as well. For the South Florida area, this is definitely good news, since this area has always been considered as one of the most exclusive places to live. Most experts are indicating that now is the best time to invest in Bal Harbour real estate.

Not too long ago, everyone was a little afraid to buy any type of property. This real estate downturn led to a big problem for developers and for anyone who wished to sell their property. However, things have changed and the housing market all across the country has begun a new cycle. Of course, this leaves many wondering, will there be another bubble? With the problems of the past, it only makes sense to be wary. However, real estate experts and developers all indicate there is nothing to fear.

The Words of Don Peebles

For instance, Don Peebles, who is the chairman of the Peebles Corporation, is one of the most renowned developers of the day. Recently, he spoke out on the Fox News Channel’s, Neal Cavuto Show, with his own reaction to the real estate boom. According to Don, there will be no bubble now or in the future. Instead, he says that the housing recovery will be ongoing and long-term. This will lead to a continued rise in the housing market and numerous new developments across the country. Peebles says that now is the time to get into the real estate market. This way, as housing prices continue to go up, anyone who has invested will be able to enjoy the higher value.

How the Boom Effects Miami real estate

Peebles, and other real estate developers, all say that Florida and South Florida are the places to develop properties. That has to do with higher sales taxes in states like New York. More businesses will choose the lower cost areas like Florida in an attempt to save money.

As more people move to the Florida area, this will put a greater demand on available real estate. Of course, this will push prices higher and continue to provide successful ventures to real estate developers.

Of course, this is good news all the way around for Florida. As developers take greater interest in the area, they will propose new projects, spend more money on property, and bring new industry.

Experts Believe in the “New Boom”

Experts in the real estate market aren’t just talking about the long-term effects of the real estate boom either, though. They are taking action because they realize just the opportunity that is currently presenting itself.

Peebles himself just recently proposed a development for a 13,500 square foot building to be located in Harlem, New York. With his real estate expertise, obviously, he wouldn’t build if he didn’t feel confident in his advice. This should give anyone the courage to invest in real estate as well.

Whether you are mildly interested in the real estate in Miami or other markets, or you wish to become a developer, now is the time to buy properties and get into construction. The country is on the cusp of what should be a long-term boom. That means properties will continue to go up in value as the years roll by. Anyone who invests now will see excellent returns in the coming years. This is especially true for states like Florida, who will likely see the most out of the upswing.

After the real estate crash a few years ago, no one was willing to offer financing on big projects in the Miami area. There was simply too much risk for any financial institution to take since there was a very good chance that developers wouldn’t be able to sell all units in their new build. For the first time since that crash, a major financing deal has taken place, leading to a definite upswing in the Miami real estate market.

According to the Wall Street Journal, lenders from Birmingham, Alabama put together a financing deal for a $160 million construction loan. The deal is offered by Regions Financial to develop a new condominium in the Sunny Isles Beach area.

Miami Beach Condos

The new condo that will be built out of this deal is the Mansions at Acqualina. This new condominium will feature a 47 story tower that will overlook the waterfront. This is planned to be a luxury, high end condo option and the units will begin in cost at $7.75 million. These types of luxury Miami Beach condos have not been built in recent years. There simply was not enough of a demand and developers couldn’t get financing. It seems that things are turning around.

The First Big Loan

Since the Lehman Brothers collapsed a few years ago, which had a drastic impact on developers, condo owners, and investors alike, no bank has been willing to offer a loan for more than $100 million. This essentially stalled out any developments in the area.

There are a few things that this financial deal indicates:

• Banks are willing once again to take risks.
• Despite low interest rates, financial institutions are once again seeing a chance for profit.
• Experts indicate that a real estate boom is happening across the country, especially in South Florida.

Because the demand for luxury condos in Miami is on the rise, the demand for more available spaces is also going up. That means, developers are scrambling to propose new options.

Since banks seem to be once again willing to take a risk and provide high cost financing for the developments, there is a good chance that more condos will be proposed in the coming year.

In fact, in the Sunny Isles area alone, a dozen different condos have been proposed. If they do get approved, then developers have a better chance of securing the financing that they need.

It has been a few years since anyone was able to secure a large loan, and the Birmingham financial institution backing the Mansions at Acqualina may be the first to step out and take a risk, but it likely won’t be the last. The good news is that no one foresees a drop in the real estate upswing, and that means banks will be even more willing to take a risk since they know they have a better chance of profit in the long term. Permanent and visiting residents will now have the chance to choose brand new, luxury condos in the coming months.

In the last year, the housing market in Miami has begun to make a serious comeback. Part of this has been due to the fact that there is a shortage of inventory. Many homeowners are forgoing placing their homes on the market in the hopes that they will continue to recover more of their pre-housing crisis value. This is essentially forcing current buyers to choose from among the properties that are currently on the market. For example, in 2012, distressed properties held a 40.1% share on the available amount of inventory in Miami. These were the lowest levels of available distressed properties since 2008.

As a direct result of these homeowners’ actions, the number of pending sales in the Miami housing market has increased dramatically. According to a recent report released by the Miami Association of Realtors, the number of pending sales for condos and single family homes has risen 67% over this same time last year. For example, in October of 2011, there were 2,488 pending sales in Miami Dade County. In October of 2012, there were 4,172 listings pending. This number also represents an 18% increase over the number of pending sales in September of 2012. Many are rejoicing in these signs of economic recovery.

Martha Pomares, who served as the chair of the Miami Association of Realtors in 2012, had this to say about the subject:

“The Miami real estate market is poised for another record year, that would surpass the all-time sales record set in 2011. Strong demand persists despite the shortage of housing inventory, and listings are increasingly selling at a more rapid pace, driving in significant price appreciation.�

In a similar sign of economic recovery for the Miami condos as well as single family housing market, the average sale price of condominiums rose 31.7% in November of 2012 versus what they were in November of 2011. This is the 17th straight month of appreciation for townhomes and condos that Miami has seen. In a report released by the MAR, it was noted that the average sale price of single family homes also 15.9% in the same period. This was the 12th straight month of appreciation gains for Miami single family homes.

In fact, these numbers have allowed Miami to set new sales records for 2012, even exceeding the number of sales that were conducted in 2005 before the housing bubble burst. Martha Pomares also noted that, given the shortage of available inventory, it was remarkable that these numbers continued to increase so. For example, in November of 2012 alone, sales activity increased by 23%.

The effects and fallout from the housing crisis are still being felt, and some experts have suggested that it could be 2017 before the market makes a full recovery. However, these signs of growth are encouraging, and it is making buyers feel less fearless when it comes to making purchases. While the future is still somewhat shaky and uncertain, the new growth is an encouraging sign.

In the Bal Harbour neighborhood of Miami

is located the Majestic Tower condominium development. A penthouse suite, which has regularly been featured on the Real Housewives of New York, has recently sold for the sum of $4.9 million. It was bought by an anonymous buyer from Argentina. Previously, the home had been owned by the father of “Housewives� alum, Aviva Drescher. Drescher’s father had bought the home in 1999, paying $927,000 for it at the time. The unit features four bedrooms and four bathrooms.

The prices in the Bal Harbour neighborhood have begun to increase dramatically. From this time last year, prices in the Majestic Towers development have increased approximately 20%. A number of Miami real estate buyers have been showing interest in the Bel Harbour neighborhood, which is located in northern Miami Dade County. As the area becomes more desirable, housing prices are surging.

Appearances on a television show or associations with a famous name are not a guarantee that a house will sell, but it does assist in the marketing aspect. In particular, homes that have been associated with icons of another era have had these connections exploited, as sellers hope that the storied histories will separate buyers from their wallets. The childhood home of Katherine Hepburn, located in Old Saybrook, Connecticut, has been marketed in this manner. The listing for the $30 million property details the site where the actress’s supposed relationship with Howard Hughes took place. Mention is made of the fact that he used to “landed his seaplane directly in front of the home.�

However, even these famous connections do not guarantee a sale. The “Housewives� Miami penthouse is the exception of the rule, but one only has to consider the story of rapper 50 Cent and his Farmington, Connecticut mansion. It has been on the market since 2007. Originally listed for $18.5 million, it has been discounted over the years until the current asking price is only $10 million. Situated on 19 acres, the home boasts 19 bedrooms, 25 bathrooms, a number of kitchens, outdoor and indoor pools, a shooting range, and its own private, 3,500 square foot nightclub.

A similar story is that of Joe Montana’s 500 acre Napa Valley estate. When it first went on the market in 2009, the property was listed for $49 million. In January 2013, he dropped the price to $35 million. The main home offers 9,700 square feet of living space, and the property’s many amenities include equestrian facilities, an olive farm, and a shooting range. Montana himself has described his home as a “true artistic expression of architecture�. As of yet, it has not sold.

There are many other celebrity associated luxury properties in Miami. Pharrell Williams recently listed his 40th floor penthouse suite for sale at $16.8 million. It will be interesting to see if the famous name association assists with its selling.

In separate deals, two realtors have current plans to propose the construction of new high rise condos in Miami Beach. These two locations would be named Residences at the Miami Beach Edition and Deauville Hotel Beach Resort. Together, the two proposed developments would boast 440 units. This would bring the total amount of proposed unit developments to 13,315 since 2007, when the housing market bubble first burst.

In the 5 years since the market first crashed, one new tower has been constructed, and 12 high rises are currently in the construction phase. For the Miami Beach pre construction projects, the Residences at Miami Beach Edition would call for an 11 story tower to be built, with 26 of its units being designated as part of a resort complex. On the 4.2 acre site, there would be plans for at least 3 towers to be built.

In June of 2010, the developer of this project purchased what was formerly known as the Seville Hotel for approximately $57.5 million. The Seville Hotel was originally constructed in 1955. Prior to the housing market crash, the hotel was going to be revamped and reopened as resort under the Ritz Carlton flag.
To the north of Miami, on one of its barrier islands, building proposals for a 20 story high rise with an estimated 412 units are currently in production. The developer of this project is Deauville Associates LLC. They are currently seeking approval from the government to build this new high rise tower. Prior to this, they have sought and received approval to build a tower that would hold 150 condo units, but this new, more ambitious project has replaced the old one. Approval for the project will take several months to seek out.

Since 2003, approximately 49,000 new units have been created in South Florida. Of these numbers, 94% have been purchased by foreign investors. While there are currently many new plans in place, if approved, most of these new projects are not scheduled for completion until 2014. This is the projected date for when the last of the unsold units from the prior Miami real estate boom will be sold. As of right now, it is not clear how these proposed towers will be built. Obtaining construction financing has never been more challenging for developers, and there is the uncertainty principle regarding who exactly will purchase them.

In an effort to surmount future financing problems, developers of these new high rises are requiring prospective buyers to pay deposits, some as high as 80% of the unit’s price, in phases. By comparison, before 2006, developers were only requiring deposits of 20% from buyers. Real estate agents and firms will certainly be casting an eye towards these new developments with baited breath. The Miami housing market is only just now beginning to show signs of recovery from the previous economic depression, and if the market were to become oversaturated with new housing again, it could spell potential disaster.

If Miami real estate history

does repeat and the economists are correct, 2012 was the new 2002.

Last year was the return to normal for Miami real estate. With annualized homes sales at $4.6 million nationally in 2012, we are close to 2002’s $5.5 million mark, which has now been defined as the normal level for sustainable real estate sales. Interestingly enough, a look back at 2002 in South Florida looks very similar to 2012. Ten years ago, combined numbers for Miami–Dade and Broward showed an overall inventory level of just over 20,000 residential properties for sale which at the rate of sales represented about 5 months of inventory, very similar to the numbers for 2012. It is when you start evaluating pricing that things really get interesting and the differences start to emerge.

The average Miami home sales price

in both Dade and Broward counties combined has risen from $446,000 to $620,000 in the last 10 years, with many peaks and valleys along the way. The most significant growth trend has been in what is referred to as the “super� luxury market. Not a high end grocery store, the super luxury market are those properties that define the top tier of property sales in a market. In the last 10 years, that market has gone from above $5 million to above $20 million. In 2002, 768 residential properties were sold over $1 million in both counties. By 2012, that number had grown to 1,911. The over $5 million market growth was even more pronounced in the same time period, with 4 times as many sales in 2012 as compared to 2002. In the super luxury category, over $10 million, there were no sales in 2002 and 30 sales in 2012. This is clearly an entirely different market now.

Rental prices continue to rise as well: 41% of all investors purchased more than one property last year. With rental prices going up, and a continuing strong demand, this too will remain an active segment of the market.

2012 also saw the return of the U.S. Northeast buyer in a very strong way. Income tax changes in many states in the U.S. and countries abroad has been the final impetus to clench that purchase decision in Florida, and South Florida in particular. These are buyers that can claim residency anywhere in the world and choose our backyard. Who can blame them?

The rise of the super luxury Miami real estate market is the break-out story of 2012. While the number of all residential transactions in Broward and Miami-Dade stayed nearly flat from 2011 to 2012, with fewer than 1% more sales year over year, the luxury market took off. South Florida is still valued tremendously low as far as dollar per square foot in the worldwide luxury real estate market, yet gains prominence and importance, year after year.

Please contact Lana Bell – 1-305-336-0457 to learn about luxury Miami Beach real estate

In November of 2012, famous producer and rapper Pharrell Williams made headlines when he listed his home for sale for a sum of $16.8 million. This property is located on the 40th floor of Miami’s famed Bristol Tower, which falls into category of most expensive properties currently on the market in Miami today.

Today, we are seeing a nice surge in sold and also pending sale high-end homes and Miami penthouse sales. The South Beach real estate market continues to be strong and continues to attract both domestic and foreign buyers. The market for luxury properties in Miami and South Beach has experienced tremendous growth in the last year, but the front in Brickell has remained rather quiet up until now. A similar penthouse in Brickell, located at the Four Seasons, is currently for sale for $15 million.

Pharrell Williams might have garnered attention when he listed his home for sale, but he is far from the only celebrity who calls Miami home. Other notable names who currently maintain at least part time residences in Miami include Gianni Versace, Rickey Martin, Jennifer Lopez, Lenny Kravitz, and Madonna, amongst many others. O.J. Simpson used to maintain a residence in Miami until he was forced to sell, due to his ongoing legal troubles.

While Mr. Williams did not have a problem with his name being attached to the property that was for sale, other celebrities make a concentrated effort to hide their identities when it comes to selling their luxury pads. Even if a celebrity, like Mariah Carey, has posed for magazine photos inside of their home, they generally do want to acquire these same level of attention when it comes to selling the property. According to an article published in the New York Times, most celebrities will require the realty firms they hire to sign confidentiality agreements, or they will have the sale conducted behind the privacy scree that a limited liability company and lawyers provide.

Before opening the homes to tours from prospective buyers, realtors will actively scrub the property to ensure that any evidence a celebrity lives there is erased. The jury is still out on whether or not having a famous name attached to it will actually assist a property in selling more quickly, but the efforts taken in ensuring the privacy of famous homeowners prevents the curiosity seekers from attempting visit where their presence is unwelcome.