Consequences of the Election in the Miami Market

Either a Republican or a Democrat, we’re all on the edge of our seats waiting to see what will happen with the real estate market in South Florida after 2016’s biggest moment: the election. Donald Trump and his immigration policies were the big winner of the night, so what will happen with Florida?

So, if South Florida’s population is mostly made up of Latin Americans, does this mean that the real estate market is at risk? At Riches, we have the strong belief that it isn’t.

According to Edgardo Defortuna, president and CEO of Fortune International Group (a residential developer), South Florida’s real estate market will be as stable as it has been for the past ten years. South Florida will continue to be one of the best cities in the US to invest on properties.

Defortuna stated that: “If anything, Trump understands how the real estate market works and many of his supporters are major real estate developers and investor”. And moreover: “All his economic policies are for growth and to create new jobs and to jump-start the economy depending on factories going back to work and real estate booming and I don’t see how that could possibly be a negative impact.” 

Therefore, if anything, South Florida’s migration will keep on as it has been in past years, meaning that the real estate market will continue to grow and develop.

Miami Tops the List of Markets with the Most Cash Buyers

By Satinder Haer

Miami real estate often steals the spotlight. Whether it’s due to being one of the hardest hit markets during the housing bust or the location of a celebrity’s newest beachfront penthouse, Miami gets its fair share of attention. Now, the city has another claim to fame. Recent data shows that Miami has the largest percentage of cash buyers out of the 51 largest major metros in the nation.

If you’re considering investing orpurchasing in Miami, use this information to make an informed decision. Understanding your market and competition is necessary due to the local nature of real estate.

Changes in Miami Real Estate

Miami’s history shows that the city is no stranger to real estate fluctuations. After the burst of the real estate bubble, Miami home prices and sales fell dramatically—many investors stopped buying homes and regular home buyers were hesitant to purchase. As a popular investor and vacation home market, the slowdown was not a surprise. However, as home sales bounced back, investors once again flocked to Miami and spurred the city’s recovery. In 2012, cash buyers made up 70 percent of the home sales in Miami. While the percentage of cash deals in Miami has dropped in the last few years, Miami is still one of the hottest cash buyer markets.

Even the government is taking interest in the astonishing number of cash deals taking place in Miami. In January 2016 the U.S. Departmentof Treasury announced that title companies handling cash deals in this market will have to reveal the name of any buyer spending more than $3 million. This new regulation will likely impact investors, especially foreign investors who cannot obtain U.S. mortgages and therefore typically make all-cash purchases.

How Miami Compares to Other Florida Metros

Florida is a hot-spot for cash buyer markets. Eight of the 10 top cashbuyer markets as of Q2 2015 were located in Florida. Miami led the way as the number one market with 55 percent cash home sales. Sarasota, Fort Myers, Daytona Beach, Tampa, Lakeland, Melbourne and Orlando followed, respectively. Orlando, which was tenth on the list of top cash buyer markets and ranked eighth of the Florida markets, had 44 percent home deals—a full 11 percent less than Miami. Despite the fact that cash deals inMiami have actually gone down from other years, Miami still leads the other cash buyer markets in Florida by a large percentage.

Implications for Buyers

Buyers who are looking at homes in Miami will need to take the large percentage of cash buyers into account. Investors who are willing to put down a lot of cash, or even purchase the property outright, may be more competitive in the Miami market. Many of the cash deals already being facilitated in Miami are likely from investors and could be your competition. On the other hand, investors who purchase high-end or luxury properties may need to consider the implications of the U.S. Treasury’s new disclosure regulation.

Regardless of which situation applies you, use this information to arm yourself before you buy your next property. Knowing the influence of cash in your market can help you make strategic investment decisions.

            

Miami Real Estate Market Update - Brickell Area - May 2012

In the following table you will be see closings in the Brickell area for the month of May of 1012. There were a total of 67 closings. The main statistics are:

• Average price per square foot: $355
• Lowest price per square foot: $110 (Four Ambassadors unit 1424)
• Highest price per square foot: $890 (Millenium tower unit 51F)

Building	Unit	Bed/Bath	Living area	Days on Market	List Price	Sale Price	Price per sq ft
BRICKELL KEY II	307	0/1	400	3	105,000	105,000	262.5
Four Ambassadors	1424	1/1	990	18	108,801	109,000	110.101
FOUR AMBASSADORS	1464	1/2	990	14	120,000	110,000	111.111
THE CLUB AT BRICKELL BAY	505	1/1	825	15	174,900	186,313	225.834
THE MARK ON BRICKELL	3018	1/1	760	39	174,900	185,000	243.421
FORTUNE HOUSE	2211	1/1	640	55	185,000	175,000	273.438
Fortune House	1713	1/1	640	72	188,880	179,000	279.688
Brickell Key Drive	925	1/1.5	640	43	205,000	195,000	304.688
THE CLUB AT BRICKELL BAY	3614	1/1	818	24	209,000	210,000	256.724
The Club at Brickell Bay	2414	1/1	818	98	210,000	175,000	213.936
THE CLUB AT BRICKELL	1904	1/1	825	56	210,000	200,000	242.424
LATITUDE ON THE RIVER	3004	1/1	848	106	210,000	208,000	245.283
The Sail	2005	2/2	942	17	215,000	215,000	228.238
BRICKELL ON THE RIVER	3005	1/1	757	117	238,000	241,000	318.362
COURVOISIER COURTS	1708	1/1.5	806	52	239,500	232,000	287.841
BRICKELL KEY II	419	1/1.5	640	131	240,000	239,000	373.438
Brickell on the River S	704	1/1.5	987	643	249,000	220,000	222.898
1060 BRICKELL	402	1/1	968	77	260,000	250,000	258.264
COURTS AT BRICKELL	705	1/1.5	878	195	270,000	250,000	284.738
BRICKELL ON THE RIVER	202	1/1	0	206	275,000	275,000
1060 BRICKELL	1010	1/2	1028	376	280,000	275,000	267.51
Courts Brickell Key	1705	1/1	878	230	285,000	270,000	307.517
500 Brickell	3208	1/1	738	28	289,000	260,000	352.304
The Club	2815	2/2	1030	94	294,900	285,000	276.699
JADE	606	1/1	895	45	294,900	284,500	317.877
ONE MIAMI	1510	1/1	846	32	295,000	270,000	319.149
THE PLAZA	3308	1/1	674	14	295,052	290,000	430.267
The Ivy	3506	2/2	1087	363	297,000	280,000	257.59
BRICKELL ON THE RIVER	2017	2/2	1267	357	299,000	265,000	209.155
1060 BRICKELL	2102	1/1	843	94	320,000	307,500	364.769
500 BRICKELL EAST	3800	1/1	806	57	349,000	320,000	397.022
BRICKELL ON THE RIVER	2410	2/2	1110	44	349,900	323,000	290.991
1060 BRICKELL	1411	2/2	1407	139	359,500	345,000	245.203
500 BRICKELL	2603	2/2	1111	13	369,900	360,000	324.032
THE MARK	1904	3/2	1510	5	374,900	374,900	248.278
METROPOLITAN MIAMI	2902	2/2	1160	34	399,000	390,000	336.207
1060 BRICKELL	3707	2/2	1218	8	420,000	400,000	328.407
1060 BRICKELL	2307	2/2	1088	89	420,000	400,000	367.647
BRICKELL KEY ONE	A1815	2/2.5	1377	36	425,000	390,000	283.224
Plaza on Brickell	3206	2/2	1054	28	429,600	416,000	394.687
THE PLAZA ON BRICKELL	4706	2/2	1054	163	436,452	435,000	412.713
ONE TEQUESTA POINT	709	2/2	1310	544	439,000	400,000	305.344
1060 Brickell	3014	2/2.5	1278	227	449,000	416,000	325.509
EMERALD	3910	2/2	1298	49	450,000	400,000	308.166
Epic Residence	1803	1/1.5	867	189	450,000	420,000	484.429
COURVOISIER COURTS	2102	2/2.5	1305	36	460,000	450,000	344.828
THREE TEQUESTA POINT	3003	1/1.5	1087	1000	465,000	430,000	395.584
THE PLAZA ON BRICKELL	3711	2/2.5	1395	210	489,900	480,000	344.086
Epic West Condo	3605	1/1.5	950	0	530,000	520,000	547.368
THREE TEQUESTA POINT	1102	1/2	1440	154	550,000	520,000	361.111
ICON BRICKELL	1105	2/2	1450	334	607,000	597,000	411.724
JADE RESIDENCES	1707	1/1.5	1135	281	620,000	565,000	497.797
FOUR SEASONS	41D	1/1.5	1114	51	630,000	605,000	543.088
COURTS BRICKELL KEY	1004	3/3	1493	506	639,000	597,000	399.866
900 Biscayne Bay	TH503	3/3	1694	157	669,000	645,000	380.756
Icon  at Brickell	2705	2/2	1313	50	675,000	670,000	510.282
Three Tequesta Point	1805	2/2.5	1694	669	685,000	670,000	395.514
Plaza on Brickell	4210	2/2.5	1395	163	699,000	620,000	444.444
COURTS BRICKELL KEY	509	3/3.5	1878	24	699,500	660,000	351.438
Icon Brickell Tower 1	2305	2/2	1503	37	730,000	715,000	475.715
ICON  VICEROY  BRICKELL	4908	2/2	1459	150	750,000	675,000	462.646
Two Tequesta Point	1201	3/2.5	2224	31	915,000	915,000	411.421
JADE	2111	2/2.5	1878	31	1,250,000	1,120,000	596.379
JADE	2605	3/3	2130	10	1,374,900	1,335,000	626.761
CARBONELL	2608	4/4	2860	15	1,850,000	1,700,000	594.406
ONE TEQUESTA POINT	412	4/4.5	3160	97	2,250,000	1,875,000	593.354
MILLENIUM TOWER	51F	3/4.5	3763	198	3,750,000	3,350,000	890.247