Miami Real Estate
Miami real estate, with it's beautiful homes and condos, and the surrounding metropolitan area sits between the Miami River, Biscayne Bay, the Everglades and the Atlantic Ocean. It is the second largest city in Florida and the county seat (and largest city) of Miami-Dade County. It is also the largest city in the South Florida metropolitan area, which is comprised of Miami-Dade County, Broward County, and Palm Beach County making up the largest metropolitan area in the Southeastern United States. Miami, which is also known as the Magic City, was originally occupied by the Tequesta Indians. In the1960's and 1970's, Miami's population was sparse.
The Miami real estate market began when Julia Tuttle, a local landowner, persuaded the founder of Standard Oil to expand his railroad to Miami and build his own resort. On July 28, 1896, Miami's real estate market was given life. Miami grew rapidly in its first 30 years. After World War II, Miami's real estate was fueled by the area's perfect weather and tranquil beachfront location. However, the real estate development was cut short by a destructive hurricane followed by the Great Depression. In the mid-1930's, the Art Deco buildings were constructed and this boom in the real estate continued until 1942. After World War II, thousands of Miami's soldiers settled in the city. In 1950, the once called City of Magic became the "Crime Capital" when thousands of gangsters and gamblers moved to Miami.
By the late 1980's, Miami rose to international popularity when a movie was set in the city and gave Miami the deserving attention it wanted and needed. People from all over the US moved to Miami and tourists were coming to experience the place. Today, Miami stands as the third most popular tourist spot in the US after New York and Los Angeles.
Miami Real Estate Prices Poised To Increase With Gaming
Miami real estate values may once again increase, as gaming becomes a real possibility in Miami-Dade County. Rep. Erik Fresen, R-Miami, and state Sen. Ellyn Bogdanoff, R-Fort Lauderdale, will file gaming bills this month, according to a report in the Miami Herald last week.
The gaming bills will ask for permission to build three large resort casinos in the Miami area, and will seek a gambling commission for Florida, according to the Miami Herald report. Gaming licenses, which are presently housed under the DPR (Department of Business and Professional Regulation), will most likely be treated as a unique industry which would be regulated seperately from other types of state licensing.
Genting Malaysia, a multibillion dollar casino group, may not take kindly to the idea of regulation changes, in light of their plans to build a $3 billion hotel casino facility in Miami. In addition, one cannot overlook a pending court case, where the issue in question is whether or not gaming legislation must come through a state constitutional ammendment.
If gaming does come to Miami, real estate prices are sure to climb substantially,
with an influx of new homeowners from all over the US, and from all over
the world. Miami is well known as one of the worlds truly international
Miami Real Estate Market Update
Miami real estate asking prices are still too high, and sellers still don’t get it. If one drives around Miami Beach, or Coral Gables, particularly in those areas where luxury homes are located, it becomes painfully obvious that there are almost as many homes for sale now as there were in early 2009, when the real estate market in Miami took a deep dive.
Many homeowners who want to sell, but whose homes are not up for sale, report that they are waiting for the market to change, before they place signs in front of their houses. They feel as though they will not be able to get what they consider to be a good price for their property if they try to sell now.
The reality is that they are not going to be able to get what they consider to be a good price, whether they wait or don’t wait, because the fact is that sales prices are where they should be.
Prices that homes were selling for in 2004 and 2005 were so inflated that when the bubble finally burst, almost everyone was shocked, and now in 2011, sales prices of single family luxury homes are more or less the same as they were 7 years ago -- exactly where they should be.
It is understandable why sellers are frustrated, because in America real estate is supposed to appreciate, and if prices are the same now as they were so long ago, it is very hard to accept. However, if homeowners who want to sell, come to the realization that 2004 and 2005 home prices were based on greed alone, and not on value, it may well become a little easier to accept.
Realtors are also very much to blame for the frustrations of homeowners, because in their zest to get a listing, they tell a homeowner whatever he/she wants to hear, in order to secure the listing. The owner, of course, believes the realtor, gives the agent the listing, and then becomes extremely frustrated, when 6 or 12 months pass by, and the seller receives no offers on the property.
What is the answer? It is very simple. Realtors need to tell the truth to homeowners, and homeowners who want to sell must necessarily become a lot more realistic than they are.
Miami condo owners, who have listed their condos for sale, have all become acutely aware of the steep fall in value of their apartments. The over development of many huge buildings with hundreds of apartments, and no buyers, along with the foreclosures of thousands of other condos in Miami, has brought the condo market to it's lowest level in memory.
The good news is that condos can be purchased at prices that would have otherwise been unthinkable. Luxury real estate at low prices, relatively speaking, has become the norm in Miami.
The Icon Brickell, a 3 tower complex, with 1,796 units, one of the biggest developments in Miami in recent years, has dropped prices more than 50% on units in the third tower. Condos in the Icon Brickell that were selling for $680 per square foot, just a few years ago, can now be purchased for as low as $298 per square foot of interior living area. Condos in the other two towers have dropped about a third in value.
Related Group, the developer of the ultra luxury 3 tower project, is
counting on Latin American buyers to come in, and snatch up the multitude
of available units, at the steeply reduced prices. For those interested
in living in a great area in the heart of Miami, the Icon Brickell is
a good choice, and an opportunity to live in a building that is state
of the art.
Miami real estate is undergoing some changes that are truly mind boggling. Some homes are selling for remarkably high prices, given today's economic climate, while others are selling at prices well below market value; and some sellers still don't get it.
Last week a beautiful new home was listed for sale in the Miami MLS (multiple listing service) for an asking price of $3,990,000. At first glance, this didn't seem like an outrageous price for a brand new house on the exclusive Venetian Islands in Miami Beach, with 4,600 square feet of interior living space, and 5 bedrooms.
At a second glance, one notices two very important factors -- that the house sits on a lot measuring 7,200 square feet, and that the property is not a waterfront home. That means that the seller is asking approximately $867 per square foot of living space, for a house on a lot which is less than three quarters of the size of most waterfront lots on the Venetian Islands.
Waterfront homes on the Venetian Islands have been slow to sell recently, and there are many waterfront houses for sale now. Sales of bayfront homes vary widely in terms of price per square foot, but $600 to $850 per square foot of interior space, can be used as a "rule of thumb" with regards to sales prices.
It begs the question, how does a home owner of a non-waterfront property come to the conclusion that he/she could possibly get anywhere close to the asking price, or even half of the asking price of $3,990,000? It is mind boggling, and one of the reasons that real estate in Miami is undergoing such turmoil.
On the other hand, sales of luxury homes on Miami Beach are still being made, albeit at a snails pace. Very recently a beautiful Miami Beach house on the Sunset Islands sold for $9,500,000. The 9,993 square feet mansion, situated on a 20,000 square feet waterfront lot, located at 1400 W 28th St. on Miami Beach, boasts 7 bedrooms and 7.5 bathrooms, and is a Mediterranean work of art, with fine marble, hardwood, and keystone floors. Although the asking price for the estate was $15,900,000, the property closed for just over 59% of the asking price.
Condos are moving slowly as well. Last week a beautiful condo at the Four Seasons in Miami sold for $1,000,000. The 2 bedrooms 2.5 bathrooms condo located at 1425 Brickell Ave on the 48th floor (48C), was a great buy for the new owner, at approximately $468 per square foot of interior space.
Miami real estate has undergone its share of turmoil in the past few years, and many homeowners have suffered as a result. However, there are signs that a bottoming out is taking place right now, at least with respect to the sale of single-family homes in the Miami area. The latest statistics documented by Realist.com, showed a substantial increase in sales of single-family residences this July over July 2008. Last month 1,622 homes sold, as compared to 1,277 in July of 2008, a remarkable increase of approximately 27%. That is the good news. The bad news is that median home prices dropped considerably from a year ago. The median home price in July 2008 was $249,000, and last month, it was $206,000, a decrease in value of more than 20% from a year ago.
Condo sales tell a far different story. The overbuilding of condominium towers by greedy developers over the past several years, has taken its toll on thousands of Miami residents. In July of 2008 the median sales price of a condo in Miami was $348,000, and one year later, in July 2009, the median price dropped to $230,000, reducing the price of a condo to only 66% of its value just 12 months earlier. Sales have also dropped substantially in the Miami condo market. In July of 2009, only 1,524 condo units sold in Dade County, as compared to 2,441 sold apartments in July 2008, a drop of more than 40% in number of sales from the same month, a year earlier.
The real estate boom in Miami has ended. The copy below will give you a
good idea of where Miami real estate was just a few years ago.
The number of real estate projects being developed all throughout the city proves Miami's exceptional growth. Last year, the Planning Department reviewed 104 major development projects. Out of the 104, the City Commission approved 25 projects.
The approved 104 projects gave way to 20,100 new residential units, 800 hotel rooms, and 12,800 parking spaces. All the approved developmental projects amounted to a total construction cost of US$7.8 billion. Miami caters to all real estate investors by providing numerous opportunities to buy and sell properties. With a variety of single-family homes, commercial spaces, waterfront homes, and condominiums, both the realtors and homebuyers are provided with a number of choices. During the first months of 2005, the Miami condominium market started to heat up.
Last month, a total of 19,660 condo units were just finished, is still under construction, and in the planning stage. New condominium constructions such as Brickell CitiCenter, Icon Brickell, Soleil, Urban River, and Ehden Placea won approval for new units. With the new developments in Miami real estate, the values are expected to increase which would demonstrate real estate developer's timely and accurate investment judgment.
Values of each condo unit have averaged at about US$300,000. Investment experts say the boom in the Florida real estate market is because of economic factors and demographic causes. Developers expect the real estate values to continue growing as the projects are being developed. However, with Miami's real estate history, the city would always find a way to stand up against the market drop off and continue to develop their magnificently popular city.