Miami’s real estate market has definitely gone through some tough times, but Morris Massre explains why things are so bright for the South Florida housing market, he needs sunglasses.
It is time – South Florida can safely say that the worst of the real estate meltdown is over and we are now in the recovery stage. I can only compare the last five years of real estate misery to cancer. First, there is the initial shock when you find out. Then denial, followed by rage and acceptance. Now we are in remission and short sales and foreclosures are slowly becoming a thing of the past.
Although we are not completely out of the woods yet, all signs seem to indicate that the business is changing for the better. There are a number of signs that we can point at too: Demand for single family homes has increased dramatically due to incredibly low mortgage rates; banks are loosening their grip on approvals; stabilization in home prices; and a heavy influx of new immigration. That last point is a bit different from foreign investment in the fact that this new wave of immigrants are here to stay. Volatile leadership in countries like Venezuela are sending waves of people packing for Miami in search of not only a better life, but safety as well.
Foreign investment is strictly what is driving the condo market in Miami, and it is coming back with a vengeance. Unlike immigrants seeking a new home, these buyers are snatching up condos at today’s prices in hopes that future markets will yield a much higher return. Sound familiar? Whether or not this will continue, or if a condo bubble is developing, remains to be seen, but for now all indications are now is the time to buy.
You will be hard pressed to find a short sale on the market these days. More traditional sales are pointing to a time of real estate normalcy, and with very little inventory to choose from, prices are holding steady so long as sellers price their homes right and are willing to deal with an appraisal. Those holding out for cash may eventually find themselves out in the cold. In fact, inventory is so low that I have found myself banging on doors asking homeowners if they want to sell, because I have buyers coming out of the woodwork like cockroaches scrambling for cover when you turn on the light.
This has led to a healthy rental market as well; that is, if you are a landlord. Rent prices have increased by hundreds of dollars overnight, and those who are not willing or not able to buy yet have found themselves left out in the cold. This has probably been the only downside to the whole comeback story, but that will change too as additional homes begin to find themselves back on the market.
I have not felt this good about South Florida real estate since 2005, but before you jump on the buying and selling bandwagon, make sure you research market trends thoroughly, and if you do not know what you are doing or need some guidance, hire a local Realtor who does. I am banking on the fact that Floridians and newcomers alike have learned their lesson from previous mistakes. Now get out there and do some buying and selling the old fashioned way.
Morris Massre is a Realtor with Prudential Florida Realty. He can be contacted at:
Phone: 954-214-6014
Email: agentsunstate@gmail.com
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