Monday, February 10, 2014

Miami Beach 2014 Real Estate Market Forecast

By David Nguah


We are off to a great start for the 2014 South Beach real estate market. In 2013, property selling prices in this area were down approximately 26% over 2012. For those of you that may not be familiar with the exact area that is South Beach, it is from 1st street in the coveted South Fifth neighborhood, to 23rd Street on Miami Beach. I:2:J

We saw numerous noteworthy record-breaking property sales almost every month of 2013 except in November. In the past 12 months, the number of properties listed for sale rose by approximately 9%. As 2014 kicks off, we have observed a rise in the real estate prices again, especially in the ultra-luxury condo market which is being driven by the lack of high-end inventory. However, I forecast we may see a surge of homes and condos hitting the market and a rise in asking prices.

In 2013, the noted medium listing price was around $1, 300 per square foot, even though the medium closing prices were at around $925 per square foot. Many property owners seem to be maximizing on their current list prices. However, recent property sales numbers seem to fall a little short. Because of this, we've got listed properties sitting in the market for an extended period of time and owners getting purchase contracts they may well perceive as under-value.

The 2013 Miami Beach property market place, specifically, solidified the recuperation of the real-estate market, coming out from what's now generally known as the great recession that commenced towards the end of '08. 2013 had its fluctuations as with any healthy real estate market.

We have continued to see a large number of international buyers from countries such as Brazil, Italy, Russia, France and a large number of domestic all cash buyers, but have also noticed a much higher number of bank financed transactions from the prior year. This is a great indicator of confidence in Miami Beaches condominium and single family residential market.




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