Miami Real Estate Market
Saturday, December 17 2005 @ 06:46 PM UTC
The Florida real estate market is on an upward swing, and the Miami area market is certainly no exception. With strong economic growth, jobs, and schools, it’s a prime growing location. City life, with great beach access, make it attractive to both newcomers to the area. The city itself is also steaming with culture, and more is coming. Miami is home to the Performing Arts Center and the Design Art District. Of course, it’s also home to the Miami Heat. Miami is a favorite of both tourists and retirees as well, only adding to the growth potential of both real estate and the employment markets. Experts expect the south Florida area, including Miami, to double within the next ten years. CNN calls it ‘One of the Hottest Zip Codes.’ This makes the market in Miami an enticing one. There are many current high-rise projects under way. Prices on pre-construction start at $600 per square foot, and go up. Condominium resale is currently at $300 per square foot and up. Anything priced lower will go fast.
This area will appreciate over time, with the expected growth. Pricing in the Miami area is lower than in other markets, such as LA, New York, or Chicago. This makes Miami attractive to buyers. Economists at Fiserv Case Shiller Weiss predict that the Miami market is going to ‘sizzle’, while west-coast markets such as LA will ‘fizzle’. There is reason to trust their predictions, as they have a great success rate, with only a 2 percent error rate. They forecast Miami to go up 13 percent between 2005 through the first quarter of 2006, making the Miami market one certainly on the rise.
In such a popular area as Miami there will naturally be a shortage of suitable lots for new condo developments, and the Miami condo market is now stretching into older neighborhoods and has reached the suburbs. Downtown Miami has seen a lot of new development recently. Further expansion down Miami Beach is another extremely lucrative business for Miami real estate developers since the Miami real estate market shows no signs of losing the sizzle. Many of the condos are sold in pre-construction, with prices going up within a few months of purchase, making it very lucrative for the seller.
According to the Miami Herald, the average time for a property to be on the market in Miami is three weeks. The average single-family home is priced at $282,000. According to HouseHunt’s survey, the market currently has more buyers than sellers, with sellers at 31 percent and buyers at 69 percent.
The condo market in Miami is growing as well. It is targeting both middle-class and higher income levels. While beach-front properties are extremely expensive, properties just a few blocks inland can save the buyer money.
Miami has a huge financial district, which only adds to its appeal as the place to be. There are over 60 commercial banks in the Brickell area, making many term Miami as ‘The Wall Street of the South” to the financial community. The downtown area is great for those that prefer the city area to the beaches.
Like the rest of Florida, the 2005 hurricane season has done little to depress the market in Miami. MSN Money states that Miami is one of the markets that continue to grow, while other areas are on the decline around the country.
By Patricia Fuller
Daily News - Daily World EU News