It is undeniable in Miami Beach that sales are picking up. Inventory is limited, the banks are releasing fewer foreclosures, and investors have been eager to snap up the latest properties that have been released and veritable bidding wars have ensued. The increase in the final sale of the property, which is resultant of the bidding war, is gently increasing the overall sale prices in South Florida, who were hit hardest in the market crash of 2008. Further, new developments in South Florida are abounding, over 30 planned, and brokers are being given high incentives to get these preconstruction units sold. What an exciting time. The news were are very eager to share is the reports from the National Association of Realtors regarding a surge in the purchases of vacation properties, with cash!
Investors are paying in cash for properties coming up as foreclosures and short sales, within the luxury real estate and condominium market, which has been able to help counter the foreclosures on the market. The increase in rental prices is making it more desirable to invest in properties and 41% of the time, investors are buying multiple properties at once, according to NAR Chief Economist Lawrence Yun. 49% of investors paid in cash and investors comprised approximately 1/3 of all purchases. The proportion of these sales that were vacation were 11%, a fact that does not fall on deaf ears in the Miami Beach Condominium Market. We are increasingly seeing on Zillow, Trulia, throughout news sources reporting on the surge of sales in South Florida. For the most recent comparable sales in Miami Beach, contact us today!