Wednesday, October 03 2007 @ 05:57 AM MSD
|The sun, sand, vibrant lifestyle, dazzling nightlife: These are but a few words that perfectly fit the description of living in a diverse and thriving place like Miami Beach. Tourism is the main driving economic driving force, and along with the tourism boom comes a flurry of housing and property developments. |
The city's economic fundamentals are sound, and majority of the real estate offered on Miami Beach are expensive single-family homes, spacious estates and seafront mansions, as well as upscale condominium units and apartments.
Current Mortgage Rates According To Freddie Mac
According the Federal Home Loan Mortgage Corporation, or. "Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 6.25% in Q4, down from 6.56% in Q3; the rate was 6.22% in Q4'05.
Over the last five years, metropolitan areas with the largest single-family home price gains include California’s Riverside-San Bernardino-Ontario areas, up 155.3%, and Los Angeles-Long Beach-Santa Ana, up 142.3%, followed by the Miami-Fort Lauderdale-Miami Beach area of Florida, up 135.4%."
The US Credit Crunch And Its Effect On The Housing Industry
As the current US housing market slump is weighing heavily on property developers, pre-construction condominium and housing assets in Miami Beach are also feeling the pinch.
Local realtors, especially those who have experience selling property in Miami for decades, are concerned that present buyers are reluctant to borrow from lenders, which results in many people shying away from condominium and apartment auctions. At present, housing analysts note potential buyers are adopting a wait-and-see attitude, anticipating what happens next to the market, and on what the Federal Reserve’s next move would be.
How Miami Beach Is Weathering The Slump
Amid the current slump in real estate markets and the effect it’s made on global markets, there still appears to be a demand for affordable pre-constructed houses in a good location such as Miami Beach. This helps to explain why just last weekend, the downtown Miami real estate market had to extend their open house transactions beyond midnight.
On good thing to note is that, during first half of this decade, there was a record low set in mortgage rates, more growth in employment opportunities, burgeoning growth in Miami’s population, and an ever-increasing interest from overseas visitors, immigrants, and investors. Despite the positive attributes, Miami real estate developers and brokers are still asking for government support. Industry observers here are thinking that perhaps the state legislature could help adjust taxes imposed on home developers.
Still, many developers are saying that real estate prices are comparatively exorbitant, and that that property developers couldn't manage to lower prices without government support. The real estate market in Miami Beach is projected to ease, which is a positive sign that the real estate market is stabilizing.
With housing projects created to target middle-income earners, sales are expected to rise significantly next year. Market analysts note that the housing market will continue to provide a strong foundation to the economy even as the market adjusts to the current slump.
Vanessa Arellano Doctor