Bal Harbour Condos Blog

    8
    Feb

    Condo Boom in Miami Beach And Palm Beach My Be On The Horizon

    Submitted by Bal Harbour Condo Expert on Wed, 02/08/2012 - 04:56


    South Florida real estate is truly unpredictable when it comes to market trends. While the right timing and investment returns are rather difficult to predict, trends in this market have been on the positive side for property purchases and investing. In the big picture there are indicators that direct potential investors as to when properties should be sold or purchased.

    In North Miami Beach and Palm Beach signs of a favorable future for property values have been evident. These areas are ripe for new projects and developers are eager to plant their flag for a lucrative investment in the real estate market in Miami. During the economic downturn, the Kolter Group, LLC held off on their condo project. Now seeing that the Miami Beach real estate market is showing signs of rejuvenation, the bold move of a competitor has prompted them to take the dive boldly into major construction.

    The Related Group was the first to announce its plan to start construction of a dual tower condominium project. It will consists of 506 units and is to be located on the northern end of West Palm Beach. These double towers will also offer the best views and amenities.

    Immediately following their announcement, the Kolter Group announced the re-starting of their North Palm Beach condo project. The fall of 2012 has been deemed the estimated time for ground-breaking. Since the pricing has been reduced from the original planned pricing, there will be more units made available to forego their losses. Prices now fall between the ranges of $600,000 to $1.5 million. The Kolter Group expects this project to be completed by the fall of 2014.

    The economic sectors of the South Florida market are badly in need of a boost. These preliminary projects are just the fuel needed to create jobs and additional housing. Notice of a third project has also been circulating called"The Porsche". Boasting one unit per floor, this luxury high-rise will offer its residents the ability to park their vehicles in their apartments! Stay tuned for more on that!

    8
    Feb

    Miami Rents Rise as International Buyers Continue to invest in Miami Housing

    Submitted by Bal Harbour Condo Expert on Wed, 02/08/2012 - 03:55

    According to the Miami Herald, the numbers of people from foreign countries purchasing waterfront single-family homes in Miami is increasing. As these numbers increase, so does the rent that is being charged. Sources at Texas-based MPF research stated that South American investors are purchasing condominiums in Miami and are managing to rent them within a week. They also state that they are able to charge ever-increasing rates as time goes by. The research firm has found that Miami’s rents have gone up between three and seven percent recently. The fact that housing is still experiencing large numbers of foreclosures means that people are expecting this trend to continue.

    Rentals in Miami and South Florida in general are occupied at a rate of 95 percent. The trend mentioned previously was that rents have been rising between three and seven percent. What will increase the numbers of people renting in this area are the 160,000 homes that are set to be foreclosed upon in the near future. This gives ”vulture-investors” several opportunities to purchase these foreclosures and quickly turn them into rental investment properties. This is exactly what South American real estate investor, Leon de Vega, has done.

    After purchasing a property for $50,000 and investing in repairs in the amount of $10,000, de Vega was able to rent a two-bedroom unit in Kendall for $12,000 a month. Sale of this property just closed, and he received a purchase price of $95,000.

    Foreigners enjoy purchasing American real estate because of the higher rents, the fact that they will receive greater protection than they do when they purchase property in other countries, and also because owning American property can make obtaining a visa to the United States a much easier proposition.

    As investors continue to be fans of real estate in Miami, the numbers of home sales will continue to rise to the levels they reached in 2005 and 2006. In some areas, people even believe that home sales will surpass the levels set in the year 2005. One example is in Miami-Dade County where it’s possible that they will see 29,000 home sales this year, and this is much higher than the numbers recorded in 2005.

    Throughout this current recession, the numbers of people who own their own homes has been in decline. Although this is the case, homeownership continues to be a great investment because every year, home prices increase by 5.4 percent. It is a trend in which renters cannot partake. Sometimes, people decide to rent until they can afford a decent down payment on a house, but currently, this is not the case due to the high price of rent and low wages people are receiving at the moment.

    7
    Feb

    Miami Herald Land Recently Sold For $236 Million

    Submitted by Bal Harbour Condo Expert on Tue, 02/07/2012 - 03:52

    Prominent Miami real estate is extremely popular and sought after more than any in the U.S. In light of recent events, Miami's real estate market takes a major hit on the positive side with the purchase of 13.9 acres of land on the waterfront by the third largest casino company in Asia. Namely, Genting Malaysia Berhad has acquired this large parcel of land owned by the Miami Herald Newspaper for $236 million. This major property spans from Biscayne Blvd. to Biscayne Bay and is considered the kind of deal that will reshape Miami's skyline and further enhance this thriving community.

    Even though the Herald's operations have sustained in the Miami area, the publisher issued a public note stating that their current space could no longer maintain an environment of productivity. It was also mentioned that funds were required to address the current concerns of the Herald organization. Those concerns consisted of taxes, debt and funding for the employee pension plan. The Herald also promises that their daily operations will continue uninterrupted in lieu their lucrative South Florida real estate sale.

    Among other Miami luxury residential developments, it has been estimated by the Genting Group that this project will be constructed at the cost of $2-5 billion. This fosters a significant boost to the already booming South Florida economy. Ultimately, this leads to job creation that numbers in the thousands.

    The Genting Group has planned a luxury complex that includes a host of ultra-modern residential highrise living spaces, a hotel, retail shopping venues and a convention center where business meetings, concerts and other large gatherings can be accommodated. Miami's real estate market receives these grand plans with great expectations.

    The success of the Hearald transaction can only strengthen the prospect of South Florida real estate. This deal has been received as a sign of future luxury developments to follow in this vibrant Miami community. The ongoing hunger for luxury constructions in South Florida will allow the continued attraction to international visitors and current renters in the local metropolis.

    When it comes to Miami real estate, this landmark deal makes perfect sense. Though the deal is already closed, the expected construction will take place in 2 years. This gives the Miami Herald time to relocate their organization and settle their inner concerns, as they are eager to land a property in the same area.

    3
    Feb

    Miami Real Estate Prices Compared to Prices Around the World

    Submitted by Bal Harbour Condo Expert on Fri, 02/03/2012 - 01:27
    Blog Category: 
    Miami Real Estate Market

    It might seem that real estate prices in Miami are on the high end of the scale, but one look at housing prices throughout the world shows the reality of the situation. While there are economists and journalists putting forth their opinion that real estate in the Miami area is overpriced, they are simply wrong. In fact, Miami homes on the market tend to be on the lower end of the pricing scale, compared to some other parts of the country. In fact, property in Miami is less expensive than real estate in New York, Denver, or even San Francisco.

    This can be seen in the price per square foot comparison taken between Miami and San Francisco, for example.Miami real estate estimates come in at around $182 per square foot, while San Francisco prices tap out at around $520 per square foot. Taken in that context, it certainly seems that Miami prices are definitely not out of touch with the rest of the world’s housing prices.

    Part of what makes Miami so attractive when it comes to real estate is the absolute beauty of the area. Anyone who has seen what life is like on the shore knows that Miami is one of the most dazzling areas to live. Because of the interest in the area, it stands to reason that a great number of terrific shops, boutiques, and restaurants are also found in Miami. Taken from any angle, living in Miami is nothing short of a dream come true. There are few other parts of the country that offer Miami’s unique combination of a cosmopolitan experience combined with a “laid back” beach lifestyle, making Miami homes for sale one of the first areas where some experts feel the housing market will begin its rebound.

    It looks as if this is the season when Miami is going to be one of the hottest areas for real estate, with buyers from the North looking to bask in the sunshine while their friends and neighbors shiver in the cold. By the same token, many European buyers have set their sights on Miami, both for the scenery and the incredible value. This can be seen by comparing real estate prices in Helsinki with the prices in the Miami area. Someone living in Finland, for example, would be paying around $1,366 per square foot for their real estate. When that is compared to the prices in Miami, it is easy to see why Miami is attracting so much attention from around the world.
     

    1
    Feb

    Multi Family Properties Leading Miami's Rental Market

    Submitted by Bal Harbour Condo Expert on Wed, 02/01/2012 - 02:40
    Blog Category: 
    Other
    Multi Family Properties Leading Miami's Rental Market

    Recently, the strength of the Miami rentals market has become apparent based on several indicators. Many people have taken the opportunity to purchase distressed properties in order to provide housing for Miami’s permanent residents and its visitors. Miami has all types of properties, but it appears that the multi-family developmet is more popular than most.

    An investigation by the CBRE has shown that the numbers of rental properties have increased by 3.4 percent. This means that rents have been rising and are currently higher than they were in the years 2006 and 2008. The good news is that the CBRE is convinced that rents will continue to rise as the year progresses.

    Why is the demand for rental properties rising in Miami?

    Miami rentals have become much more popular lately because the economy has been in a recession. Because of this, several homeowners needed to find other living accommodations because they lost their homes to either a short sale or bank foreclosure. The short sale and foreclosure caused a lot of people’s credit scores to go down, so they cannot qualify for a new mortgage to purchase new houses. These people found the solution to be renting.

    The fact that Miami is a highly popular tourist destination is another reason that Miami luxury apartments are in such high demand. Both United States citizens and people from abroad make plans to visit Miami and the surrounding areas throughout every year, and they are in constant need of the area’s rentals. These tourists seek all types of rentals including those that can accommodate a large family in a multi-family developmet. Other visitors are in search of Miami luxury apartments that overlook the ocean.

    The fact that multi-family properties are engendering more and more interest has not escaped the notice of developers. The Miami-Dade area presents extraordinary opportunities for rental properties of this kind as the area’s rental properties are largely fully occupied. A total of 62 properties are being developed in this area, and this means that buyers or renters will have 18,000 more units to choose from in the near future. As there are currently only 62 of these properties in development, popular wisdom believes that the numbers of these developments will continue to grow.

    U.S. citizens seeking residential property to invest in as well as people outside of the country will be seeking real estate ventures in the months to come. The present time is excellent for this as the supply is increasing but the time will come when the demand will exceed the existing numbers of these properties.
     

    11
    Jan

    Florida’s existing home, condo sales up in November 2011.

    Submitted by Bal Harbour Condo Expert on Wed, 01/11/2012 - 04:07
    Blog Category: 
    Other

    Florida real estate market continues to enjoy an upward swing in sales of existing homes and existing condos currently on the market for November's report according to Florida Realtors. Home sales within the market saw an increase of 11 percent last month within the last month. Statewide, 12, 993 homes sold in November, up from 11,664 homes in November of 2010. The increase in sales demonstrates the beginning of a strong sales year for Miami real estate and the start of recovery from the recession.

    Florida Realtors chief economist, Dr. John Tuccillo, says that the increase in sales signals two vital points that reflect the market is rebounding. The first factor Dr. Tuccillo cites as having an impact on Florida real estate is that sales are experiencing an upward trend. The second factor he says the data shows is a stabilization within the market, making it possible for sales to continue the trend upward for the foreseeable future. He stresses that the news does not mean that prices have turned around, but only that the early signs of stabilization are apparent within the numbers. The equation for the statistical data also includes a decrease in percentage rates that allow more people to buy homes and to pay less interest than at this time last year. Last year, home buyers could expect to pay 4.9 percent in interest. This year's interest rates are at 3.99 percent, offering home owners a chance to pay less interest.

    Of course, the fact that sales are increasing is the most important part of the equation, but banks and lenders are also playing a part in the stabilization process by becoming more educated on how to handle distressed properties faster and more effectively. All of these factors together are helping Miami real estate recover.

    Miami real estate reported seventeen metropolitan statistical areas having higher existing home sales within the month of Novembers. For condos, ten metropolitan statistical areas reported higher sales. This shows a definite increase in sales per year and is a sign that the recession is losing its hold on real estate within the Florida region.

    Remaining relatively flat, the median price statewide for existing homes hovered at $130,100, down from 2010 when median sales for existing homes were at $130,600. According to the National Association of Realtors, this is not surprising data when analysis shows that the rather disappointing median price range continues to be distorted by distressed and foreclosed properties as these properties sell at a discounted price when compared to homes that are not foreclosed or distressed.

    The median price is the average price of homes. Some Miami homes sold for more and some for less. The national median price for existing single family homes was $161,600 in October, which is down 5.8 percent from one year ago. Geographical location also plays a part in median pricing with California experiencing a resell price of $278,060 in October. Massachusetts saw resell values set at the median of $275,000. The resell median price in Maryland was $221,765. New York saw resell prices in the median range of $215,900. With the numbers firmly in place, it does not necessarily mean that median sale prices remain flat lined as the market recovers from the economical recession that has plagued the nation. All sales rates are measured by closed sales, and the numbers reflect only those homes and properties that have closed.

    In a year to year comparison for Florida, statewide sales did see promising numbers as 5,590 Miami condos units sold, a two percent gain over sales the previous year with an increase of 4 percent per unit cost in price. This upswing is driving the real estate market as well as other markets as jobs in the area also increased.
    10
    Jan

    Miami Real Estate Market: Buyers vs. Sellers on home prices

    Submitted by Bal Harbour Condo Expert on Tue, 01/10/2012 - 23:28
    Blog Category: 
    Other

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    The year 2012 could be the year that the housing market within South Florida real estate finds its footing and reaches stabilization. Currently, economic and real estate data are pointing that the trend for higher sales on Miami condos and Miami homes on the existing market are seeing upswings in sales that will continue to stabilize as the market grows stronger.This trend is causing some buyers and sellers to be at odds. Buyers feel that the market is primed for buying while many sellers are balking and trying to wait out the economic slump, hoping to snag a better offer for their home.

     Currently, prices reflected on many homes within the real estate market are not as high as they would be in a more stable economic market. This creates differing sides of the fence for home buyers and home sellers. Sellers feel their homes should be worth more than the current market value and are balking at selling the homes at lower rates for a variety of reasons, one of which is the possibility of taking a loss on the sale if the home is sold too far below actual value. Actual value and current market values may be different during the economic structure, but the gap will close with the resurgence of a stronger economy.

    It will be at least five quarters before the gap between buyers and sellers begins to close, according to the MBA report. In the years between 1992 and 2005, seller positions remained high, about 40 to 60 percent. Since 2005, though, Miami real estate sellers have decreased to 7.6 percent. Despite unemployment rates and an unstable economy, buyers have remained in high spirits. 80 percent of American households believe that now is the prime time to purchase new real estate, a drastic contrast to seller enthusiasm.One reason buyers find the market so favorable is the fact that many homes are currently valued at lower pricing options due to the recent recession in the economy.

    In the last few years as home values plummeted, many Miami real estate sellers refused to take lower offers on their homes in an effort to wait out the slump. Many cite being underwater, or owing more on their homes than the current market value is worth. For this reason, waiting for the market to stabilize or to refuse lower offers on their homes may be a tactic to breaking even or turning a profit once South Florida real estate stabilizes completely. Signs that a more stable economy is on the way are already apparent in statistical data.

    According to Gary Englehardt, a Syracuse economics professor, many sellers realize there is a benefit to holding onto property and waiting for the numbers to increase rather than to sell now when prices are lower. He believes that this strategy could hold prices high enough to drive a substantial wedge between buyers and sellers. Add to that the sluggish job market, and we could see some more distance between buyers and sellers in South Florida real estate market for a bit longer.

    4
    Jan

    South Florida Real Estate $15 Billion Housing Stimuls Package Was Proposed..

    Submitted by Bal Harbour Condo Expert on Wed, 01/04/2012 - 07:17
    Blog Category: 
    Miami Real Estate Market

    South Florida Real Estate $15 Billion Housing Stimuls Package Was Proposed By President Barack Obama

    The American jobs act included a proposed $15 billion housing stimulus plan. What are the contents of this plan? More importantly, how will the $15 billion housing stimulus package affect Miami real estate and the overall market value in South Florida? Is the housing stimulus plan beneficial to South Floridians?

    Pres. Barack Obama designed a plan to connect unemployed Americans to distressed areas where there is a growing need for repair, re-purposing, and reselling residential and commercial properties. Modeled after the successful neighborhood stabilization plan, the Americans job act will invest $15 billion in targeted rehabilitation programs within targeted communities nationwide. Miami is one of the targeted areas included in this job act.

    The American Job Act's Goals:

    1. To stabilize the community by providing focus and resources to distressed areas

    The idea of focusing the resources on distressed commercial properties and pushing off new business construction has its roots in occupancy. By re-purposing buildings already in existence, the American Job Act hopes to raise occupancy in buildings within Miami Beach real estate to give the area a boost. Of course, once occupancy is raised sufficiently, then new buildings will gain focus once more in an area no longer distressed due to the economy.

    2. To support collaborative redevelopment strategies

    The American Job Act seeks to combine the efforts of multiple avenues within South Florida real estate to engage new investors and buyers in purchasing South Florida real estate. This includes non-profit organizations, local government and private sector business working together. And, when the area is not distressed anymore, the focus would shift back to new businesses and developments within Miami real estate.

    3. Provide funding for land banking

    Funding of this type increases the interest within the community, which in return increases holdings and eventually increases the rate of redeveloping distressed properties. Project rebuild provides necessary capital infusions to increase private sector development interest. Basically, it provides access to monies at low interest rates. It is a goal that requires time to fully reach fruition within Miami Beach real estate.

    4. Create jobs

    The creation of jobs will be and in particular areas and industries. Property maintenance, property rehabilitation, and rebuilding will see the most rise in job related activities. Jobs improve the area's economy and increase sales of homes within Miami Beach real estate as families find their financial footing.

    Florida stands to receive $2.7 billion in federal grant money through project rebuild. A large some of this money will be directed towards redeveloping the communities real estate, funding land, and development of new properties within the area. Of course, this must all be approved by the US Department of Housing and Urban Development.

    The neighborhood stabilization program, or NSP, has already provided cantonal financial results within Miami real estate. In Palm Beach County alone, 15 homes or rehabilitated and are now occupied by new owners as a direct result of the neighborhood stabilization program.

    The goal of this program is to place families and individuals into homes that are affordable within this economy. However, the new program may experience struggles on the climb to success. Either way, the program will provide additional value to South Florida real estate and its surrounding areas.
     

    30
    Dec

    Canadians Showing Support of Miami & South Florida Real Estate

    Submitted by Bal Harbour Condo Expert on Fri, 12/30/2011 - 03:55
    Blog Category: 
    Miami Real Estate Market

    Lately, a lot of attention has been focused on the Miami real estate market and the international buyers it is attracting that hail from Europe and South America. However, one of the largest groups showing an interest in the region are from Canada. Florida realtors, a trade group, reports that thirty six percent of international and real estate purchases can be directly attributed to Canada.

    Canadians interest in South Florida real estate

    The Bank of Montréal reports that twenty percent of Canadians are looking to purchase US property as an investment and vacation destination. That is a huge number when the statistical data is analyzed.

    The recent recession in the economy has depressed the US real estate market and dropped prices to a near all time low. At the same time, the loonie, the Canadian dollar, has gained strength. This is spurring renewed interest for Canadians purchasing vacation homes abroad. The Canadian interest in South Florida real estate has always been strong. It is only the recent economical situations of both countries that has sped up the timelines for owning property abroad for Canadians buyers.

    Canadians from all parts of Canada, but the largest groups are from Toronto, Calgary, Montréal, and they are interested in purchasing South Florida real estate for the same reasons that US citizens are interested in purchasing Miami real estate. Due to the harsh weather experienced in Canada during the winter months, many Canadians are seeking warmer climates for vacationing. Florida, however, experiences a tropical climate year-round, making it an ideal place for Canadian buyers. In addition, Miami real estate offers nice beaches and easy flight access while still offering a variety of potential lifestyles. Miami has properties available in almost all districts, each offering distinct experiences for the new home owners. Miami is a tropical paradise that finally has reached a point in which real estate is affordable due to the recession.

    Another contributing factor in Canada's interest in Miami Florida properties for sale is the rising property value within their own country. As US's real estate market has experienced declining property values over the last few years, Canada has seen a doubling of property value during the same time span. According to the Montréal Gazette, the average property value in Canada is just over $330,000 which is up from $150,000 fifteen years ago.
    It is this appreciation in Canadian homes that is allowing homeowners to utilize the equity within the domestic properties to purchase Miami property for vacationing. This particular method of refinancing a home means that the transaction is a fairly simple process.

    What Miami Property Are Canadians Buying?

    Most properties purchased by Canadians are focused in the areas of Miami-Dade, Broward, and Palm Beach. This information is verified by the Miami Association of realtors. The types of Miami Florida properties for sale the Canadians purchase are varied. While many are seeking single-family homes to use expressly for the purpose of vacation, there is also a large number of Canadian purchases that are targeted toward condos within Miami real estate. Condos offer great vacationing locations with beautiful ocean front views while single family homes are suited larger families.

    30
    Dec

    Federal Reserve Governor Urges Bold Moves to Revive the Housing Market.

    Submitted by Bal Harbour Condo Expert on Fri, 12/30/2011 - 03:04
    Blog Category: 
    Other

    The Wall Street Journal reported that Elizabeth Duke urged bold moves for real estate meant to revive the housing market. Elizabeth Duke is a high ranking official with the Federal Reserve. In her speech last Thursday Duke stated "Clearly the real estate market is not functioning as it should.” The speech was in recognition of a national real estate market slump due to the economical recession that has hit nearly every part of the American dream.

    While the market in Miami has felt the recession, the real estate market in Miami has been relatively steady with stabilization occurring in many areas. There has been renewed interest in property purchases. And while much of the country has struggled in the real estate market, South Florida has seen the rise of new development projects within the Miami real estate market.

    Basic economics suggests that low interest rates entice consumers to initiate major purchases, such as buying a house. While interest rates are not at the lowest they've ever been, currently interest rates are near the all-time low. Although the interest rates are historically connected to a booming housing market, the current statistical data does not supports correlation. In many parts of the nation, the number of people buying a new home is still very low compared to the interest rate data.

    Financial experts suggest that one cause for real estate troubles can be found within the credit market, although it is by far the only cause for the recession within the industry. Fewer banks are offering favorable credit terms; and it is become more difficult for consumers to gain mortgage approval without a nearly spotless credit record. Another cause for real estate difficulties is the number of foreclosures flooding the market. In fact, Miami foreclosure properties continue to come into the market at a steady pace.

    In an attempt to stimulate the housing market, new ideas are being evaluated the policymakers. Leaders such as Duke are beginning to creative with ideas for the real estate market in Miami and nationwide. This is in addition to the government supported mortgage firms Freddie Mac and Fannie Mae. These 2 institutions offer refinancing opportunities for homeowners which are owned and operated by the government.

    Duke proposed one solution for foreclosure properties in particular. She suggests that the Miami foreclosure properties be used as Miami rental properties. Her suggestion is sound as it will provide individuals and families who could not otherwise afford a single-family property to lease a space large enough for their needs, offering an alternative to condo and apartment living. Dukes suggestions won't completely eradicate the real estate market slump, but the innovative and creative approach offer some success to lessen the strain the market is experiencing currently.

    As conversation swirls around the state of the national real estate market, many South Floridians wonder what the changes will do their market in particular. Loosening the grip on mortgage approvals will give rise to opportunity for potential buyers, individuals, families, investors to capitalize on the available properties currently on the market, many of which are priced below market value.

    For investors seeking real estate market in Miami rental properties, reduced interest rates are equivalent to greater monthly rental income spread. In short, property owners can expect a higher yield on their investment.

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