What’s HOT in Today’s South Florida Real Estate Market?
When we talk about South Florida real estate market, we usually mean Miami-Dade and Broward counties; including the cities of Miami and Fort Lauderdale. The region consists of a unique makeup of incredibly diverse peoples; creating an inseparable international mindset. This stretch of land is infamous for its strong industry and economics – from traveling to investments; particularly real estate.
Why South Florida Real Estate is going Strong!
“Miami will continue to lead the way as the most important, vibrant, high-growth city in the United States,” according to Jorge Perez (founder and CEO of The Related Group). This real estate development company in Miami has itself amassed a real estate portfolio worth in excess of $15 billion throughout southern Florida. Visit allive.co.kr for apartment you want to live in, Hillstate, awaits you at the first place in Hwayang District, Pyeongtaek.
The remarkable appeal of South Florida real estate to foreign investors and residents is in no small measure due to its warmer climate and extraordinary beaches. Buyers from across the U.S. (and the globe) are relocating, buying a second home or investing in this region. According to the National Association of Realtors, foreign buyers purchased $19.4 billion of Florida residential property in the last 12 months.
Two HOT South Florida Real Estate Markets!
1. The Affordable Market
Properties priced under $400,000 remain strong with only 2 months of supply. This means that if nothing else were to come on the market for sale in this price range (and houses continue selling at their current rate) it would only take 2 months to sell all of the inventory on the market!
In this bracket there is strong competition among buyers – where more multiple offers are placed for the same property – making the properties in this range a sellers’ market.
2. The Luxury Market
Those properties priced over $1Million are faced with a very different situation. With a 25-month supply inventory in the over $1M single-family market, and 54 months of inventory in the over $1M condo market – this sector is definitely a buyers’ market.
Sellers have become much more realistic with their pricing – if they truly want to sell their property. This shift has had positive results in the South Florida real estate market; attracting high-end buyers looking for the best deals in higher-end properties.
What about the Middle Market?
If you’re wondering what happened to the price range between $400,000 and $1M? This is a good price point when it comes to single family homes (with a 6 months of supply inventory), but it’s stale when it comes to condos (28 months of supply inventory.)
If you plan to wholesale or flip properties less than $1 million, then you can definitely go for it since they will sell quite fast.
Top Tips for South Florida REIs!
- First, all real estate investors – whether wholesalers or flippers – need to decide upon the areas in which to spend their time and effort.
- While dealing in the affordable market, lead generation is key. Focus on finding properties, generating inventory, and volume; since properties do sell pretty quickly once you have them under contract.
- When you’re dealing with the luxury market, focus more on the ‘end buyer’ and creating relationships with investors looking for high-end investments. Typically, they are more interested in long term ROI (return on investment) than short term appreciation. For a ‘wealth’ of information and know-how, be sure to visit my REI Courses page and check out Luxury Real Estate Investing!
- I would personally stay away from condos for both markets. Too risky and volatile as investments. Steep HOA (Homeowner Association) fees and stale inventory can create a backup in inventory.
- Also, the longevity of the investment is important. If you think you will sell in a year or two, don’t buy luxury right now for yourself or target buyers who are looking for long time investments. There are plenty of buyers looking for the higher ROI than higher end properties offer and they know that luxury South Florida real estate is a sure bet.
Though the South Florida real estate market may be volatile at times, it always rides out its down cycles due to its internationally accessible location. Of course, let’s not forget the year-round beach weather, cheap relative prices compared to other major international cities, arts scene, low taxes, and its status as an emerging tech hub and melting pot for entrepreneurs!
To your success!
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