In 2006, the estimated height of the real estate boom, there were over 49,000 units built and condomiums were flipped rapidly with easily obtained mortgages. The mortgage crisis witnessed many home owners that had to foreclose on the homes or put them up for short sale. Well, as the currencies of Brazil, China, Russia, Canada and Venezuela were thriving, foreign investors began snapping up property rapidly with cash. This trend made Miami one of the first places for the housing recovery to take place. Now there are scarcely 2,400 condominiums on the market which is under a year supply. Since the supply is so low and the buyers are continuing to demand properties, there has been an enormous amount of development activity to the tune of 80 planned developments in the past year.
The new model for developers and buyers is drastically different from the model of the past. Now developers require 20-80% down in cash and the rest of the balance due at intervals in construction. What is remarkable is the developments are being sold out before they break ground. We reported this week that the record breaking sale of a condominium has not even been built yet. These deposit schemes are evidence that the cash buyer is still king and the foreign investors are finding more and more reasons to invest in real estate in Miami. Developers are throwing incredibly lavish parties, often with acrobats and incredible displays to woo realtors into showing these listings to their buyers. We see no end in sight to this incredible wave, and we could not be more thrilled for Miami.