Tuesday, December 18, 2012
This week the Miami Herald caught up an expert advisor with Focus Real Estate Advisors, Craig Werley on the future of Miami Real Estate. Werley was asked two very salient questions by real estate writers at Miami Herald and we are recapping this interview for you this week, along with our own analysis of the luxury real estate marketplace. The first issue was whether the sale of foreclosed and REO homes by banks will disrupt the real estate recovery. Werley asserted that the continued growth in the job market will coincide with a strategic and slow release of distressed homes. Unlike in the near past, where new construction flourished quickly and demand dropped, new construction will be slower and at the pace of lenders. Our analysis of the luxury market has shown that the international demand is still available for luxury properties and the building of these mega luxury buildings such as Apogee Beach, and Mansions at Acqualina, will continue due to the large amount of cash buyers that do not require funding.
The second issue addressed by Werley was whether the demand for new developments will be sustained in the coming year. Werley contends that the demand for rental housing in South Florida continues to expand, due to the lender restrictions on the Y-generation and the the Echo-Boomers, who will become the next buyers in 10 years. Where there are more renters, there is more profit to be made by investors and the renters who are would be buyers can afford higher rents. Regarding the luxury market, investors in both mid range homes and apartments will be eager to buy in order to rent. In summation, we feel secure in the future of the Miami Beach real estate marketplace and welcome sustained growth in 2013.
