Home Buying in Miami>Question Details

Fred Afif, Real Estate Pro in Miami Beach, FL

How long do you think the housing market will continue on the current upswing in Miami?

Asked by Fred Afif, Miami Beach, FL Mon Apr 8, 2013

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In my very own humble opinion, as long as we have distressed sales; the presence of short sales and REO continues to attract a large number of interested Buyers both local, nationwide and international.

On a personal experience, whenever a potential Buyer makes contact, the first line on their email or conversation is: I want to purchase a foreclosure property, or, Can you get me a deal through a short sale? or, I heard I can get a property for this much if it needs a lot of repairs, etc.

Needless to say, Buyers soon realize that over 70% of our distressed "inventory", its no inventory at all. All short sales are pending, over-priced Fannie Mae and Freddie Mac inventory, other REO selling above fair market value due to non-sense bidding wars....What's left for me to purchase?? Get my drift??

In the mean time, we all question the shadow/zombie inventory and whether incentives to underwater borrowers will be extended for another year....
2 votes Thank Flag Link Tue Apr 9, 2013
Thank you!
Flag Thu Apr 11, 2013
Great answer!
Flag Thu Apr 11, 2013
Hello Fred,

If the bottom was 2009-2010, then we are just starting to correct the crash.
There are less short sales, but FL is #1 in foreclosures yet.
There are more foreclosure sales then last year.
Also - the inventory is very small, which will help further.
Many buyers, who were on the fence, finally come to realize that they'd better buy now.
Baby boomers, domestically, are "making reservations" - for their retirement place.
The rates are below 4% - making financing super attractive to many.
Internationally, Miami is more and more popular. With the addition of Panama Canal improvement,
Miami will benefit further.
Luxury buyers from all over the world are drawn to Miami because of its new luxury condo boom.
I could go on...

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
2 votes Thank Flag Link Tue Apr 9, 2013
We are located in Cape Cod Massachusetts and we see our market changing for the better. We are finding there is not enough inventory.
1 vote Thank Flag Link Thu Apr 11, 2013
the question was directed to the MIAMI market, not Cape Cod - and you magically got a thumbs up for an irrelevant answer? who are you kidding?
Flag Fri Jun 14, 2013
No one can say for 100% certain how long this ascending market will last. The unemployment rate is still relatively high. Relatively large numbers of people are dropping out of the job market altogether. But the good signs are also plentiful. Banks have gotten savvy about releasing their foreclosed inventory in a trickle, rather than flooding the market with it; the foreclosure rate has declined, increases in buyer activity have driven home value increases in many area, resolving some of the appraisal issues that so plagued the market during the downturn. And looser lending guidelines with low interest rates are making it easier for buyers to, well, buy – when they are victorious over other offers, that is. "Three myths about market recovery" by Trulia.
1 vote Thank Flag Link Tue Apr 9, 2013
For a decade or two. Boomers are retiring and at an increasing pace. http://www.naplesrealestateguys.com/
1 vote Thank Flag Link Tue Apr 9, 2013
12 years cycle barring any Acts of God ... 33 years in the and seen at least 1 1/2 cycles, its historically a 20-yr (generational) cycle.
If you need anything further please feel free to call me during normal business hours at the contact info in our website link below. And please also send your email address and phone number, I'll be excited to help you with all your real estate needs and honored for the business opportunities.
1 vote Thank Flag Link Tue Apr 9, 2013
I cannot agree more with Marc and his intelligently explained view of the market.
The only thing I would like to add Is in my opinion not only are prices not going down,
they will probably spiral in 12 to 18 months when the inventory from foreclosures
starts drying up. There does not seem to be enough new construction going on
to cover the demand both from locals and foreign investors.

Maria Elena Ramirez Malca
Florida Gold Realty
954-608-8726
1 vote Thank Flag Link Tue Apr 9, 2013
According to prognosticators in our industry, the next downturn is not due until around 2020. As real estate agents, we tend to follow the trends, rather than predict them.

During the past year, we've watched housing prices in the area make gains from 9% to 27%. Prices increases of homes in Miami are close to the top of those numbers.

Home prices in Miami, as well as in most of the hot markets around the nation, are likely to increase with inflation, even if the market cools down a bit. However, unless more inventory comes into the market to meet the demand for homes, prices are likely to remain high based on the limited supply.

Typically, a six month supply of Miami homes equals equilibrium in the market. Right now, supplies stand at 4 months or fewer. In addition, large numbers of investors from all over the world feel that the United States is a safe haven for their cash.

Real estate, at the moment, is providing higher rates of return than just about anything else. Also, real estate is an investment that most people can easily comprehend.

So, for the moment, the Miami housing market is likely to remain hot, and prices do not appear to be headed down anytime in the near future.

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com

To find prices of currently available homes in Miami, go to:
1 vote Thank Flag Link Tue Apr 9, 2013
The properties are supposed to start to go back down while interest rates increase. But no one knows 100%. Kinda like the stock market.
0 votes Thank Flag Link Sun Jun 23, 2013
Fred,

All of my fellow agents presented informed opinions, but they all missed one critical factor. Miami's real estate market is equally dependent on the political stability and economic growth of Latin America. As long as folks from Argentina to Mexico feel their governments are not stable and well-managed, we will continue to see an influx of people looking to buy properties in Miami as "insurance" against the next currency crisis, crime wave, or political upheaval.

Today is a perfect example - there's an election in Venezuela. No matter who wins, it will effect the real estate market in Doral. I'm continuing to keep my finger's crossed that things will go well and there's a free and fair election.

Ann
0 votes Thank Flag Link Thu Apr 11, 2013
Nice post.
Flag Fri May 17, 2013
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