If you have been worriedly monitoring the economy, employment and housing data, you probably felt a bit of pleasure when you read January housing and sales results. Why? Though they decreased slightly from December of 2011, they were well above the results from a year earlier.
The United States Census Bureau indicated that around 22k new homes were sold in January 2012, and this means that around 3.5 percent growth has occurred since the same period last year. This is even more exciting when you realize that this is the highest level of sales since April 2010; but the figures for this period were heavily affected by the now-ended homebuyer tax credit. So, people are buying more homes than ever, even without the tax incentives!
What does this mean for those interested in a home in Miami?
Well…for those interested in bargain basement prices it means that it is the last chance to buy. Prices in the Miami condominium market increased by 36% from the previous year, and this is not because more luxurious homes are being made available but because there is so much demand for properties.
In fact, right now there is an actual record low in terms of inventories available. Consider that the “boom” period from 2005 to 2009 saw the construction of 10,001 new condos in the Miami Beach area, and that currently only 1,020 of them remain available. That means that only ten percent of the new homes in Miami Beach are up for sale.
This represents a serious “supply versus demand” crisis, especially when you also consider that a huge number of international buyers are very actively seeking properties in the Miami region. In fact, things have gotten to be so competitive that Miami home sales priced at over one million dollars for a single property are more common than ever.
A few of the most popular brokerages announced that they have sold more homes and properties with “seven figure” price tags than they did in the previous calendar year. This clearly indicates that the prices in the Miami market have gone as low as they can and that things are beginning to turn around. This is going to continue into the future because of several major issues.
For instance, the American economy has not yet recovered, the Chavez Effect is driving Venezuelan investment like never before, Canadian buyers are enjoying excellent rates on their purchases, and new buildings are being opened for reservation for the coming years as well.