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 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.
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.
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?
The Village of Pinecrest is hosting a town hall meeting at Pinecrest Gardens to discuss the proposed MDX US 1 Express Toll Lane project. Anyone who travels on US 1 (also known as Useless 1) from Miami to communities south, has experienced the frustrating traffic and knows that relief is needed. As proposed, the current project would address traffic from Dadeland South to Florida City and would require overpasses the height of Metrorail be built at intersections along the route. If the goal is to move traffic off of US 1, wouldn’t a much more progressive plan be to build the 21 mile South Link extension from Dadeland South to Florida City?
Several studies have shown that commute times and access to public transportation are important factors in the home buying process. Millenials, individuals between the ages of 17 & 35, especially have shown a preference for communities that rely less on cars for transportation.
I lived in the San Francisco Bay Area for a long time and they have an amazing public transportation system. Many who have moved from Boston, New York, the DC/Virginia area and Europe, often comment on the lack of public transportation. Do you think Miami should try to move away from the car and expand on it’s public transportation system?
EWM is the only company in South Florida that has a rapid form of response for every online inquiry.
What does this mean if you are a seller? All inquires on your property are answered immediately by our EWM Customer Care Team. Since 90% of buyers start their home search online, having a quick response time when they are looking at your property on our website is vital to capturing their interest and getting them to visit your property.
If you are a buyer searching online for a new home, nothing is more frustrating than finding one that meets your criteria only to not have your request for further information ignored. EWM’s Customer Care Team ensures that you receive an immediate response.
This is the newest generation of online lead management and we are happy to be on the forefront!
In most markets in the country, Labor Day is the official end of summer because children are back in school and the weather starts getting cooler. Along with students settling in their seats, the real estate market also starts to slow down since parents try to make their move to align with the start and end of school.
As anyone who lives here will tell you, Miami is not like most cities in the country about anything and real estate is no exception. We actually have two real estate markets, the “traditional” one that is from Spring to Summer and the “snowbird” market that is from Fall to Spring. So basically, year round!
With the huge number of sales we are posting in 2012 and the amount of cash that is still out there, I do not see the market slowing down.
If you are a seller that had been considering selling but were holding back until prices came up, now is a good time to list your home. Inventory is down, demand is up, and prices in many of our neighborhoods have increased. If most sellers wait until the “traditional” listing season, you will have more competition next Spring.
If you are a buyer, know that competition is tight. You are going to need to be prepared if you want your offer to be accepted. If you are not paying cash, be pre-approved for a mortgage. The more money you put down, the stronger your offer will be. Know the market and the listing history of the house you are putting an offer on. If the house is price well based on relevant sales in the neighborhood and the house has not been on the market long, don’t make a lowball offer. It isn’t the buyer’s market it was two years ago.
EWM’s Coral Gables office had another amazing week in sales. Over $23,000,000 in sales and leases this week, the week before schools start. That follows last weeks’ $19,800,000+ in sales and leases. The fact that sales are so high the last two weeks of summer vacation is a sign that the real estate market in Miami-Dade County continues to recover. The number of sales (25) equaled the number of leases this week and were only slightly lower last week (21 sales and 25 leases). This week we had 14 new sales listings. Last week we had 8 new sales listings.
These numbers show that the luxury market is starting to recover, the lower priced inventory has significantly dropped as investors pick up properties, and demand in the middle price range is still strong. If you are in the market to buy or sell, give me a call to discuss prices in your specific area.
Gone are the days of having to receive paperwork via e-mail (or fax!), print it out, sign it, scan it, pray all of the pages scanned correctly and e-mail it to next party, who has to go through the same process, before the executed contract comes back completely illegible.
Not only does e-signing make for much neater contracts, it also expedites the offer-to-executed-contract process. As a buyer or seller, you no longer have to be waiting by a printer, fax machine, or scanner. You just open the file, acknowledge that the electronic signature is legally binding, choose your signature, and sign, initial and date where indicated with the click of a key stroke! As soon as you are done, the program automatically sends it to the next person for their signature.
Gone are the days of having to receive paperwork via e-mail (or fax!), print it out, sign it, scan it, pray all of the pages scanned correctly and e-mail it to next party, who has to go through the same process, before the executed contract comes back completely illegible.
Not only does e-signing make for much neater contracts, it also expedites the offer-to-executed-contract process. As a buyer or seller, you no longer have to be waiting by a printer, fax machine, or scanner. You just open the file, acknowledge that the electronic signature is legally binding, choose your signature, and sign, initial and date where indicated with the click of a key stroke! As soon as you are done, the program automatically sends it to the next person for their signature.
Miami is a very international city with lots of foreign investors. If you are buying property here, you need to make sure to ask if the seller is a foreign investor or you could be on the hook for money owed to the IRS.
Under FIRPTA, Foreign Investment in Real Property Tax Act, there is a mandatory 10% withoholding of contract sales price at closing for all foreign sellers of real estate. It is the BUYER’S responsibility to make sure the 10% is withheld EVEN IF THEY ARE WORKING WITH AN ATTORNEY &/OR TITLE COMPANY. The withholdings must be remitted to the IRS within 20 days of sale along with a special tax return.
There are exceptions to the withholding that your Realtor, title company or attorney can walk you through, but you first must ask the question.
Interest rates have dropped again. They are currently around 3.75% making properties even more affordable! Now your challenge will be finding a property. Inventory in Miami has dropped significantly and the competition with cash buyers is fierce. In the last two weeks I have seen several properties go on the market and have multiple offers within a couple of days and several have gone under contract above the list price. Most of them have been cash offers.
So, if you are financing your purchase how do you compete?
These suggestions are guidelines, since the averages used were for Miami-Dade County as a whole. Average days on market, months of inventory, and sales to list price averages may be higher or lower in the neighborhoods you are looking in.