Find out the real estate trends in your area
Over the last 12 months, the price per square foot has decreased across all commercial sectors.
Although nationally existing home sales fell in December, sales of single family homes in Miami were up 37% over November. With the median price of both single family and condos down significantly and the expiration of the first First Time Homebuyers Tax Credit coming up in April, sales are expected to continue rising in the first quarter.
Okay, you have been hearing that now is the time to buy a home, but maybe you are still unsure of why, when there is so much inventory on the market and so much insecurity in the economy. Here are 7 specific reasons:
Now, you may be a naysayer and agree with someone who stated that the price of real estate is going to go down another 33%, but those of us that are active in the market are not seeing it. We are seeing inventories decreasing, foreigners and investors coming back into the market that they had shied away from during the boom years and buyers getting some very good buys. Miami is on sale and many properties are selling for less than what it would cost to build the exact same structure on the same lot. Are you going to be someone who says, “Shoulda, woulda, coulda” or someone who feels lucky that they got into the market when they could?
Below is a quick snap shot of what the real estate market for single family homes looked like for the fourth quarter of 2009. These numbers are derived from the Multiple Listing Service and though they do not include For Sale By Owners and anything not listed on the MLS, they are indicative of what is going on in our local markets. The closed sales may be slightly underestimated due to the lag time in posting the sale in the MLS.
Coconut Grove
Coral Gables
Key Biscayne
Miami Beach
Palmetto Bay
Pinecrest
South Miami
Whereas Miami’s residential real estate market is seeing relatively steady increases in sales over last year, our commercial market’s third quarter sales plunged 70% compared to 2008. The price per square foot has decreased in the industrial sector the most, down 23%, followed by multifamily 14%, office 12% and retail 9%. It is interesting to note that the price per square foot decrease does not necessarily correlate with the number of distressed properties in each of these sectors, but rather with their actual use. It makes sense that if industries are closing that sector would have high vacancies (therefore lower pricing) and that the multifamily, in competing with the over supply of residential real estate, would also see a decrease in their pricing.
This huge decrease in commercial sales and pricing is not unexpected, as the commercial real estate sector typically lags behind the residential real estate market.
Whereas Miami’s residential real estate market is seeing relatively steady increases in sales over last year, our commercial market’s third quarter sales plunged 70% compared to 2008. The price per square foot has decreased in the industrial sector the most, down 23%, followed by multifamily 14%, office 12% and retail 9%. It is interesting to note that the price per square foot decrease does not necessarily correlate with the number of distressed properties in each of these sectors, but rather with their actual use. It makes sense that if industries are closing that sector would have high vacancies (therefore lower pricing) and that the multifamily, in competing with the over supply of residential real estate, would also see a decrease in their pricing.
This huge decrease in commercial sales and pricing is not unexpected, as the commercial real estate sector typically lags behind the residential real estate market.