Home.com released their 10 Best Cities to spend the holidays and, not too surprising, only Orlando made the list for Florida and it came in at number 6. The top city was New York, which I found ironic since so many New Yorkers are in Miami for the holidays! Number 2 was Chicago, 3 San Antonio, 4 Washington DC, 5 Las Vegas, 7 Denver, 8 Baltimore, 9 New Orleans, and 10 Bethlehem, Pennsylvania. The reason for the picks were because they were the most cheerful and festive. Obviously it was not because of the weather.
Many Floridians love to leave Miami for the holidays since we don’t have a winter and it is hard to get into the “holiday spirit” when it is over 80 degrees and humid. We are eagerly awaiting our cold front, expected to arrive on Saturday and drop temperatures from today’s 81 degrees down to a brisk 70, so we can whip out our jackets and boots. On the other hand, many of the residents from the chilly cities on Home.com’s list want to spend their holidays in Miami. It is so much easier to shovel sand than snow!
All I can say is “wow”. Our Coral Gables EWM office had an AMAZING week, with a grand total of $39,733,888 in sales and leases. There were 25 sales, 8 of which sold at asking price and 3 of which sold over asking, and 21 leases. Still doubt that Miami is a place where people want to move and invest? Doubt no more. With all of the cultural activities, port expansion, addition of more cruise ships, technology start ups, and the relatively low prices, Miami real estate is in high demand.
I just received yet another e-mail on a new construction project; this one is coming to Coral Gables. It seems hard to believe that we went through a MAJOR real estate crash, with many of our prominent developers themselves involved in foreclosures of their projects, just a few years ago. It also seems hard to believe that there are so many new developments selling their projects, when foreclosure activity in Florida is leading the nation. Is this a contradiction in the real estate market, setting us up for another dip? Not necessarily.
New projects extend from the Gables all the way north to the Broward county line. They cover Coconut Grove, Brickell/Downtown, Midtown, South Beach, Mid Beach, North Miami Beach, and Aventura. Pricing starts from the low $200,000’s in the Gables to the several million for those projects in the Grove, Miami Beach and Aventura. Based on what I am seeing, buyers are definitely leaning toward newer, more modern buildings and inventory in newer buildings is extremely tight. Builders are using a formula more commonly used in South America, where there is no financing, and the buyer pays a significant amount of money down at various stages of the construction process. The range in starting prices, demand for new buildings and the new purchasing requirements make for a bit more stability than the previous building boom.
What does all of this new construction mean if you are a buyer? It means that you will have more options in a given price range. You will be able to choose between existing units where you know exactly what you are getting and one that is under construction that you can finish to your specifications. Check to see how many new projects are going up in the area you are looking in and what the price ranges in the different development are. Too much supply of the same type of property could point to price decreases or stagnation.
If you are a seller of an older property in an area where new projects are going up, it means you will be competing with projects that are newer and offer more amenities than yours. Make sure you know your competition and highlight your property’s positive attributes. Many older units tend to be larger or offer more closet space than many of the newer construction projects.
Art Week and Art Basel ended on Sunday so hopefully you have had enough time to rest and are ready for the Borscht Film Festival, which starts tomorrow. This series of short movies, all filmed in Miami, will run through December 16 and are another example of the growing Miami cultural arts scene.
I have had several long-time customers ask me what I think is going to happen to the Miami real estate market come January. Although I don’t have a crystal ball, and the real estate market in Miami in general has been doing well with inventories down and prices up, with bidding wars happening as multiple offers come in, I decided to use a building that I am currently working on to throw a bit of a reality check into the current market euphoria.
2734 Bird Ave., Coconut Grove
In October of 2011, one bedroom units in this building were selling for between $45,000-$50,000. The last sale this year was for $90,000 and there are multiple offers on a foreclosure listed for $99,900. According to property tax rolls, nine out of the 39 total units in the building are in some stage of foreclosure. Whether or not any or all of them will go into foreclosure, short sale, or have a loan modification worked out, is yet to be seen, but if you look at the iMapp, Inc. snapshot of what is going on around this building, I have to believe that there are still going to be buying opportunities out there next year and that prices could go down. All of those little hammers are properties that are in the foreclosure process. Since the process takes over a year, where these all are in that process and how fast they come on the market will all come into play in the supply and demand cycle of 2013.
Foreclosure Around Bird Ave in the Grove
Not all markets look like this. Brickell has a lot less hammers. If you are a buyer, find out what the foreclosure map in the area you are considering purchasing looks like. Don’t be discouraged, just be realistic in your offer and your expectations as to where the market really is. If you are a seller, you also need to look at the map in your area. The map, along with relevant sales in your area, will help you set your list price in a range where your property will sell. Whether you are looking short term or long term, your perspective on where the real estate market is headed in 2013 depends on whether you are a glass half full or half empty person. Oh, and then there is the fiscal cliff…. Where do you think Miami’s real estate market is headed?
I finally made it to Art Miami today and had a great time. There was a lot of wonderful art by Miro, Picasso, Wifredo Lam, and many others. There was also a lot of silly art, such as a ball that consisted of a variety of dish sponges all glued together. Although I thoroughly enjoyed the classic contemporary art and got a chuckle from the silly stuff, some of the ones I found especially creative because of their social commentary are below.
Michele Pred Miss Conception - Made From Birth Control PillsFederico Uribe made from bullet casings
This beautifully updated north Pinecrest home is ready for your personal touches. Granite kitchen counter tops, accordion hurricane shutters, 3 year-old roof, refinished pool, and crown molding throughout, are just a few of the many improvements that make this a great buy. It is located on a builder’s acre corner lot in prestigious north Pinecrest, walking distance to Pinecrest Elementary, Pinecrest Gardens, the Pinecrest Community Center and Library and Wayside Market.
Smith and Wollensky Restaurant at South Pointe Park
Whether you are in town for Miami Art Week 2012 or just visiting Miami to enjoy our beautiful city, you will want to visit one of these restaurants. Although Miami is surrounded by water, there aren’t that many waterfront restaurants. In my opinion, these are, in my opinion, the best waterfront restaurants in Miami.
The James Royal Palm Hotel is the perfect place to kick off Miami Art Week 2012 before the opening with Art Miami on December 4. The James Royal Palm not only features “An Ocean Apart,” a carefully-curated art collection curated by Lauren Rottet, it also supports an Artist in Residence program for local emerging artists, and has a rich history.
What do Prime One Twelve, Prime Italian, Nemo, Shoji Sushi, The Big Pink, and Prime Hotel and Lounge have in common? They have great food, are great for spotting celebrities, are some of the trendiest spots on South Beach, and in case the word “Prime” in three of their names didn’t give it away, they are all part of the Myles Restaurant Group which is owned by Myles Chefetz
Home.com released their 10 Best Cities to spend the holidays and, not too surprising, only Orlando made the list for Florida and it came in at number 6. The top city was New York, which I found ironic since so many New Yorkers are in Miami for the holidays! Number 2 was Chicago, 3 San Antonio, 4 Washington DC, 5 Las Vegas, 7 Denver, 8 Baltimore, 9 New Orleans, and 10 Bethlehem, Pennsylvania. The reason for the picks were because they were the most cheerful and festive. Obviously it was not because of the weather.
