According to first quarter market reports conducted by firm Douglas Elliman, waterfront properties are increasingly sales prices of homes in the Miami area. With inventory tight, and demand high, comparable homes on the market are getting harder to come by. Distressed homes in the Miami area have fallen by 24.7% since one year ago, which also compounds the hikes in prices, according to the report. Distressed properties have been a source of property value declines since 2008, and with fewer released on the market, due to favorable refinancing and the banks releasing fewer foreclosures, the amount of distressed homes on the market has decreased by an enormous amount.
To give you an idea of the phenomenon, the demand for distressed properties, most especially distressed luxury properties, is unchanged and has witnessed cash buyers entering in bidding wars for distressed properties. Thus the final price comes in closer to the actual value. The proof is in the numbers. The median price of short sales and foreclosed condominiums in Miami has increased by 17.4%, from $95,000 to $111,500. This in turn has affected the non-distressed median sales price to increase by 7.4% . Miami used to be considered ground zero for the crisis, but no longer. International investors are still snapping up property and the luxury market, and lack of distressed inventory, are making Miami one of the strongest markets in the country. If you are looking to invest in Miami, contact us today.