Today’s buyers are now placing frequent offers and soon find that sellers only accept 5 to 10% off the asking prices. What about 30 to 40 cents on the dollar? Where are the foreclosures, bank-owned and desperate sellers the media portrays along our South East Florida Coast? Well, I’m here to tell you that the blood bath has already occurred along the Atlantic. Properties are going under contract, and demand is rising again. A lot has to do with the winter season, weak dollar, and end users wanting a piece of oceanfront and willing to pay market value. I expect a rebound on Oceanfront by the 4th quarter, yet a continued lag with new inventory like the new Trump Towers and Jade Beach & Jade Ocean. Look for great deals coming up!
Property inventory went sky high in the past 2.5 years as speculators took a big step back and the media beat up on S.E. Florida real estate. The mortgage market went south with the subprime crisis as sellers soon noted the smoke & mirrors that they succumbed to… Prices on average dropped 25% since 4th Q 2005 after an intense 2 years at 29% appreciation. The most recent stats show the sale price to list price ratio at 95%! The sellers (the 1% rule) who are aggressively priced to the market are, in fact, getting offers with Pending sales on the rise in 2008. Trump Palace 4806 is getting an offer each week.
Blood Bath in Miami Beach
Well, it’s a steal at $1.199 with new marble floors going in, and now we see the serious offers rising from 29% to 13% requested off the asking…(it’s in line to sell 1Q at full price)! My forecast is a clear separation between the mainland and the oceanfront as Downtown Miami takes a continued tumble. International buyers are taking advantage of oceanfront real estate. Real estate that was softened by the weak dollar tends to move fast with cash offers. We welcome Canadians and Europeans who look for Florida sunshine and the strengthening Loonie and Euro (now 33% off USD). It’s a strong Buyer’s market in South Beach real estate and Sunny Isles. Those that gamble on the market pay today’s market prices and are in it with a positive 3-year + outlook.
Let me know your thoughts; I appreciate your responses and opinions. Contact me here today for more information on our local markets.