GROWING INTEREST IN MIAMI INVESTMENTS
A reasonable amount of people have decided to move their residence to South Florida, creating an increasing demand for properties in the area. Covid has been a big player in this situation as remote working has given more freedom to employees and allowed people to consider relocating.
After partial lock downs and other restrictions on indoor dining, entertainment, sports, and gatherings any place that offered the opportunity to do outside activities without the cold weather interfering is worth paying a premium for right now.
There is a Strong demand for condos and single-family homes and decreasing supply has ultimately pushed prices higher, and now Miami has overtaken Los Angeles as the second most expensive housing market in the U.S., according to the latest report from RealtyHop.
“Since June 2020 the market has performed at levels we’ve never seen,” says Daniel de la Vega, President of South Florida’s ONE Sotheby’s. “There’s been a ‘reset in pricing’ over 75% in some sub markets, specifically with single-family homes. Buyers are primarily 40 to 60 years old, mostly hedge fund, private equity, and finance people who have cash in hand. But now we’re also seeing a tech movement like we’ve never seen before and it’s all snowballing. If something is on the market right now and it does not sell, it’s overpriced.”
A similar Q4 Miami report produced by luxury brokerage RelatedISG tells the same story. Total active single-family home listings in Miami-Dade, Broward, and Palm Beach counties hit a twelve-year record low at the end of 2020, with only 9,495 homes on the market across all price ranges, compared with a recent peak of 20,646 in 2015. Year over year, single-family home sales above $5M have surged 225%, 67% of which occurred in Miami Beach, Coral Gables, and Fort Lauderdale with an average closing price of $10.4M.