Tuesday, February 11, 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 housing market place, set the comeback of the real-estate industry, coming out of the great economic downturn that is today famously referred to as the "Great Recession" that started in the fourth quarter of 2008. 2013 experienced real estate movement both up and down and expected with any healthy real estate market.

We've consistently seen a great number of foreign clients from all over the world especially locations such as Brazilian, Italy, Russia, France to name a few, as well as an increase from local cash buyers, and have also noted that the number of bank funded purchase transactions rose tremendously from the year before. This is an excellent real-estate market confidence indicator.




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