Miami is a major cosmopolitan ocean-side city. The city of Miami is a world-class destination capable of satisfying every level of luxury-the wealthy and elite to the everyday splendor that is the Miami experience. Luxury Miami real estate is a smart investment anytime.
This renowned city is truly timeless, and investing in real estate within one of the United State’s top players is a guaranteed return on your investment. Projections over the next five years show that approximately 78 million United States baby boomers will retire over the next ten years. These individuals are around the age of 60 and the more successful ones are about to retire. Over the next 20 years, there will be a steady flow of wealthy retirees making their way into sunny and tropical weather areas with ocean views, mostly in Florida-and they will have the money to pay high premiums for the properties they desire.
Due to this projected large amount of wealthy new residents, Miami home prices are expected to increase 20-30% over the next five years. This will provide a strong real estate appreciation and high returns for those who are willing and able to invest in Miami properties now, while the prices are lower than they will be in the near future. The oversupply of condominium properties will be filling up steadily until the tables turn and they become hard to come by.
Wednesday, November 26, 2008
Friday, November 21, 2008
MIAMI AND SOUTH FLORIDA REAL ESTATE UPDATE INCREASING SALES POINT TO MARKET RECOVERY
The South Florida real estate market is beginning to show signs of recovery. In August, the number of existing single-family home sales in Miami and surrounding areas increased 22 percent from August 2007, while condominiums increased by 13 percent from during the same time period. This is especially significant when comparing local market figures to the entire state of Florida, where the number of sales decreased by 4 percent.
While sales have begun to increase, enough time has not yet passed to have the sales impact inventory levels and drive prices back up. Short sales and foreclosures are other factors suspected of affecting the current median sales price in South Florida. In August the median sales price for existing single-family homes dropped 30 percent from a year earlier, while condominiums experienced a 20 percent drop.
During a recent podcast on Realtors.org, National Association of Realtors chief economist Lawrence Yun, recognized as one of the top five economists in the U.S. due to his accuracy, expressed optimism about the recovery of the real estate market in Florida and other areas.
Housing Stimulus Bill to Have Positive Impact on Real Estates Sales
Nationally, Yun expects the recent passing of the Housing Stimulus Bill to significantly influence the real estate market over the next year.
“The Housing Stimulus Bill will have a big impact in my view because it’s a very simple strategy, “said Yun. “People buy a home, a first time buyer, and they get a tax break.”
The new Stimulus Package offers first time home buyers a tax credit of up to $7,500. After considering the repayment features, Yun estimates a $2,000 to $3,000 payment to the buyer.
“We will see may be 2.5 million first time home buyers over the next 12 months taking advantage of this tax credit", Yun said.
Because buying a home can be a two, three, or four month process, actual closing activity will begin to occur in the fourth quarter of 2008. Yun believes momentum will then build and accelerate homes sales from current low levels.
Mortgage Loan ActivityMortgage loan interest rates are at a very historically favorable 6.5 percent, despite having slightly increased since the lowest point in February 2008. While Yun anticipates the Federal Reserve to start raising short term rates in 2009, he says mortgage rates are determined by market forces. According to Yun, mortgage rates may tick up modestly to 6.7 to 6.9 percent but will remain well under 7.0 percent for most of 2009.
The Economic Stimulus Package also increased the jumbo conforming limit to $729,750. This is especially beneficial to buyers in high cost areas, which includes many parts of the country.
“Jumbo loans above $417,000 have not been functioning since the credit crisis in August (2007),” said Yun. Now with higher, permanent loan limits, I do anticipate more securization in those conforming jumbo loans and, hence, we will begin to see lower mortgage rates for those borrowing jumbo loans up to $625,000.”
Florida Real Estate Market Recovery
Yun is very encouraged about recovery in previously hard-hit areas such as California, Nevada, Arizona, and Florida.
“Home sales have fallen dramatically, prices dropped 30 percent, but we’re seeing buyers returning to the market place, said Yun. “As a result, we are already seeing signs of multi-bidding. So I think we have already hit bottom in those hard high regions. Hence, I see price building potential.”
As the top state for international buying activity in the nation, Florida has additional demand from international and second vacation home buyers. Yun stressed the importance of differentiating local market conditions from national and other market information. The first time home buyers tax credit and higher loan limits will most likely improve market conditions. Additionally home builders have drastically cut back on production. Inventory of empty homes is falling, which will result in a solid foundation for markets to recover in a very healthy way.
While sales have begun to increase, enough time has not yet passed to have the sales impact inventory levels and drive prices back up. Short sales and foreclosures are other factors suspected of affecting the current median sales price in South Florida. In August the median sales price for existing single-family homes dropped 30 percent from a year earlier, while condominiums experienced a 20 percent drop.
During a recent podcast on Realtors.org, National Association of Realtors chief economist Lawrence Yun, recognized as one of the top five economists in the U.S. due to his accuracy, expressed optimism about the recovery of the real estate market in Florida and other areas.
Housing Stimulus Bill to Have Positive Impact on Real Estates Sales
Nationally, Yun expects the recent passing of the Housing Stimulus Bill to significantly influence the real estate market over the next year.
“The Housing Stimulus Bill will have a big impact in my view because it’s a very simple strategy, “said Yun. “People buy a home, a first time buyer, and they get a tax break.”
The new Stimulus Package offers first time home buyers a tax credit of up to $7,500. After considering the repayment features, Yun estimates a $2,000 to $3,000 payment to the buyer.
“We will see may be 2.5 million first time home buyers over the next 12 months taking advantage of this tax credit", Yun said.
Because buying a home can be a two, three, or four month process, actual closing activity will begin to occur in the fourth quarter of 2008. Yun believes momentum will then build and accelerate homes sales from current low levels.
Mortgage Loan ActivityMortgage loan interest rates are at a very historically favorable 6.5 percent, despite having slightly increased since the lowest point in February 2008. While Yun anticipates the Federal Reserve to start raising short term rates in 2009, he says mortgage rates are determined by market forces. According to Yun, mortgage rates may tick up modestly to 6.7 to 6.9 percent but will remain well under 7.0 percent for most of 2009.
The Economic Stimulus Package also increased the jumbo conforming limit to $729,750. This is especially beneficial to buyers in high cost areas, which includes many parts of the country.
“Jumbo loans above $417,000 have not been functioning since the credit crisis in August (2007),” said Yun. Now with higher, permanent loan limits, I do anticipate more securization in those conforming jumbo loans and, hence, we will begin to see lower mortgage rates for those borrowing jumbo loans up to $625,000.”
Florida Real Estate Market Recovery
Yun is very encouraged about recovery in previously hard-hit areas such as California, Nevada, Arizona, and Florida.
“Home sales have fallen dramatically, prices dropped 30 percent, but we’re seeing buyers returning to the market place, said Yun. “As a result, we are already seeing signs of multi-bidding. So I think we have already hit bottom in those hard high regions. Hence, I see price building potential.”
As the top state for international buying activity in the nation, Florida has additional demand from international and second vacation home buyers. Yun stressed the importance of differentiating local market conditions from national and other market information. The first time home buyers tax credit and higher loan limits will most likely improve market conditions. Additionally home builders have drastically cut back on production. Inventory of empty homes is falling, which will result in a solid foundation for markets to recover in a very healthy way.
Friday, November 14, 2008
Aventura-Luxury Real Estate, Oceanfront lifestyle
Aventura is one of Miami-Dade County, Florida’s newest and most sought after oceanfront communities. The city of Aventura was incorporated in 1995 and is a youthful and vibrant addition to South Florida; complete with some of the finest waterfront real estate available in the state.
Aventura is a full-service municipality and is recognized internationally for its diverse demographic. Aventura is world renowned also for its lifestyle-high-end shopping, fine dining and entertainment. Located on the beautiful and bustling Intracoastal Waterway in northeast Miami-Dade, Aventura is 3.2 square miles in size.Do not let its diminutive size fool you! Aventura is packed with the best in amenities, luxury real estate, recreation and events!
Aventura is one of South Florida’s most luxurious waterfront condominium communities.Conveniently nestled between Fort Lauderdale and Miami, Aventura is neighbors with the city of Hollywood. Hollywood, Florida is home to the famous Hard Rock Casino, just minutes from Aventura! Aventura is constantly progressing and millions have been invested in the success and future success of the city. These investments include city sidewalks, street lighting, park & recreation development, drainage, beautification projects and pedestrian safety improvements. The city boasts a state-of-the-art Government Center.
There is a community/recreation center situated on 2.8 acres of waterfront land complete with a gym, boardrooms, computer lab, exercise and aerobic areas. The city is thrilled about its success and excited at how bright the future is! When you are ready for a personal tour of the area real estate, contact Denise Rubin Realty at 305.409.0019 or visit http://www.deniserubinrealty.com today!
Aventura is a full-service municipality and is recognized internationally for its diverse demographic. Aventura is world renowned also for its lifestyle-high-end shopping, fine dining and entertainment. Located on the beautiful and bustling Intracoastal Waterway in northeast Miami-Dade, Aventura is 3.2 square miles in size.Do not let its diminutive size fool you! Aventura is packed with the best in amenities, luxury real estate, recreation and events!
Aventura is one of South Florida’s most luxurious waterfront condominium communities.Conveniently nestled between Fort Lauderdale and Miami, Aventura is neighbors with the city of Hollywood. Hollywood, Florida is home to the famous Hard Rock Casino, just minutes from Aventura! Aventura is constantly progressing and millions have been invested in the success and future success of the city. These investments include city sidewalks, street lighting, park & recreation development, drainage, beautification projects and pedestrian safety improvements. The city boasts a state-of-the-art Government Center.
There is a community/recreation center situated on 2.8 acres of waterfront land complete with a gym, boardrooms, computer lab, exercise and aerobic areas. The city is thrilled about its success and excited at how bright the future is! When you are ready for a personal tour of the area real estate, contact Denise Rubin Realty at 305.409.0019 or visit http://www.deniserubinrealty.com today!
Friday, November 7, 2008
MIAMI & SOUTH FLORIDA REAL ESTATE MARKET
FACTS & TRENDS
Florida: Still #1 for International Buyers
Florida is by far the top state in the U.S for international real estate buyers, according to the just-released 2008 National Association of Realtors (NAR) Profile of International Home Buying Activity.
Nationally, this year’s survey indicates more than a quarter of Realtors in the U.S had at least one international client between May 2007 and May 2008. Considering South Florida’s position as an international gateway, this percentage would be much higher in the Greater Miami area.
According to the survey, more than fifty percent of those who did have international clients had successful home sales transactions with those customers. While two-thirds of Realtors reported their international clientele accounted for about the same level of business during the pas five years, 25 percent indicated their international business had increased. And even though the percentage of realtors serving foreign clients has decreased nationally, international transactions accounted for a median 16 percent of total transactions. Again this percentage would be significantly higher in terms of Southeast Florida real estate.
For the purposes of this survey, a foreign (or international) home buyer is defined as one who principally resides outside the U.S and is not classified as a foreign-born resident of the U.S. These buyers are not U.S. citizens, immigrants, foreign students, or workers on temporary visas.
Region and Country of Origin Similar to results from last year’s survey, most foreign home buyers were permanent residents in North America (Canada and Mexico) or Europe. While the share of European buyers slightly decreased by two percent from 2007 to 2008, North American foreign buyers increased nearly 10 percent during the same time period.
Six countries accounted for the majority of international purchasers: Canada, The United Kingdom, Mexico, China, India and Germany. The percentage of Canadian buyers doubled from 2007 to 2008. Canada and the U.K accounted for 36.1 percent of purchasers. Mexico dropped to third place in 2008 versus first place in 2007.
Types of Properties purchasedAccording to the study, foreign home buyers are buying the same type of properties as U.S buyers. Nationally, detached single-family homes were the most popular choice among international buyers, accounting for three quarters of purchase. Slightly less than 20 percent of foreigners bought a condominium/apartment, and six percent purchased a townhome. Together townhouses and condominiums accounted for 27 percent of international purchases compared to 12.6 percent in 2007. The percentage of international buyers choosing condos would be much higher in Southeast Florida.
According to the 2008 National Association of Realtors Profile of International Home Buying Activity, 25.4 percent of international buyers chose Florida. California ranked second at 8.9 percent, while Arizona and Texas ranked third and fourth at 8.7 percent and 6.8 percent respectively. As major U.S gateways with mild climates, Florida, California and Texas are expected to draw large numbers of international buyers. In regards to U.S. regions, foreign buyers predominantly purchased property in the South (46.8 percent) and the West (30.0 percent). The study covered the period from May 2007 to May 2008.
The level of international business differed significantly in the top four states. More than two-thirds of Florida Realtors indicated they had some foreign customers. In Arizona, nearly half of the Realtors had some foreign clients, but in California and Texas the percentage was much lower. Additionally, most of the foreign clientele in Florida and Arizona actually purchased property.
While the choice of state location and regional location differed by the buyers’ continent of country of origin, Florida was ranked first or second for most foreign regions or continents. Florida was first for buyers from North America, Europe, and Latin America and second for Asia.
Slightly more than 60 percent of properties purchased by Canadians were in Florida and Arizona. The majority of properties purchased by those from the United Kingdom and Germany were also in Florida. Chinese foreign purchases were primarily in California and Florida.
More than half of Mexican foreign transactions were for properties in Texas and California. Although the study did not include specific information about buyers in South Florida, Miami and its surrounding areas are known as the most international area in the United States , attracting numerous visitors, tourists, and real estate buyers worldwide. Strong markets include Russia, Brazil, France, Spain, Venezuela, and others.
U.S. Home Price and Method of PaymentThe median price foreign buyers paid for a home was $297,400, which is much greater than the national median sales price for all of 2007 -- $217,900 for an existing home of any type, or the highest monthly median price registered between May of 2007 and May of 2008 but slightly less than the median price paid by foreign buyers in the previous survey.
About half of foreign buyers paid $300,000 or less for their U.S. property . Similar to last year’ s survey results, 14 percent of foreign home buyers paid more than $750,000 for their U.S for their U.S. property.
Florida: Still #1 for International Buyers
Florida is by far the top state in the U.S for international real estate buyers, according to the just-released 2008 National Association of Realtors (NAR) Profile of International Home Buying Activity.
Nationally, this year’s survey indicates more than a quarter of Realtors in the U.S had at least one international client between May 2007 and May 2008. Considering South Florida’s position as an international gateway, this percentage would be much higher in the Greater Miami area.
According to the survey, more than fifty percent of those who did have international clients had successful home sales transactions with those customers. While two-thirds of Realtors reported their international clientele accounted for about the same level of business during the pas five years, 25 percent indicated their international business had increased. And even though the percentage of realtors serving foreign clients has decreased nationally, international transactions accounted for a median 16 percent of total transactions. Again this percentage would be significantly higher in terms of Southeast Florida real estate.
For the purposes of this survey, a foreign (or international) home buyer is defined as one who principally resides outside the U.S and is not classified as a foreign-born resident of the U.S. These buyers are not U.S. citizens, immigrants, foreign students, or workers on temporary visas.
Region and Country of Origin Similar to results from last year’s survey, most foreign home buyers were permanent residents in North America (Canada and Mexico) or Europe. While the share of European buyers slightly decreased by two percent from 2007 to 2008, North American foreign buyers increased nearly 10 percent during the same time period.
Six countries accounted for the majority of international purchasers: Canada, The United Kingdom, Mexico, China, India and Germany. The percentage of Canadian buyers doubled from 2007 to 2008. Canada and the U.K accounted for 36.1 percent of purchasers. Mexico dropped to third place in 2008 versus first place in 2007.
Types of Properties purchasedAccording to the study, foreign home buyers are buying the same type of properties as U.S buyers. Nationally, detached single-family homes were the most popular choice among international buyers, accounting for three quarters of purchase. Slightly less than 20 percent of foreigners bought a condominium/apartment, and six percent purchased a townhome. Together townhouses and condominiums accounted for 27 percent of international purchases compared to 12.6 percent in 2007. The percentage of international buyers choosing condos would be much higher in Southeast Florida.
According to the 2008 National Association of Realtors Profile of International Home Buying Activity, 25.4 percent of international buyers chose Florida. California ranked second at 8.9 percent, while Arizona and Texas ranked third and fourth at 8.7 percent and 6.8 percent respectively. As major U.S gateways with mild climates, Florida, California and Texas are expected to draw large numbers of international buyers. In regards to U.S. regions, foreign buyers predominantly purchased property in the South (46.8 percent) and the West (30.0 percent). The study covered the period from May 2007 to May 2008.
The level of international business differed significantly in the top four states. More than two-thirds of Florida Realtors indicated they had some foreign customers. In Arizona, nearly half of the Realtors had some foreign clients, but in California and Texas the percentage was much lower. Additionally, most of the foreign clientele in Florida and Arizona actually purchased property.
While the choice of state location and regional location differed by the buyers’ continent of country of origin, Florida was ranked first or second for most foreign regions or continents. Florida was first for buyers from North America, Europe, and Latin America and second for Asia.
Slightly more than 60 percent of properties purchased by Canadians were in Florida and Arizona. The majority of properties purchased by those from the United Kingdom and Germany were also in Florida. Chinese foreign purchases were primarily in California and Florida.
More than half of Mexican foreign transactions were for properties in Texas and California. Although the study did not include specific information about buyers in South Florida, Miami and its surrounding areas are known as the most international area in the United States , attracting numerous visitors, tourists, and real estate buyers worldwide. Strong markets include Russia, Brazil, France, Spain, Venezuela, and others.
U.S. Home Price and Method of PaymentThe median price foreign buyers paid for a home was $297,400, which is much greater than the national median sales price for all of 2007 -- $217,900 for an existing home of any type, or the highest monthly median price registered between May of 2007 and May of 2008 but slightly less than the median price paid by foreign buyers in the previous survey.
About half of foreign buyers paid $300,000 or less for their U.S. property . Similar to last year’ s survey results, 14 percent of foreign home buyers paid more than $750,000 for their U.S for their U.S. property.
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