Bidding wars are erupting from Homestead to Weston as home sales and prices take off.
Foreign Investors with cash are fueling the South Florida real estate market and driving residential prices up in both Dade and Broward Counties. In March, 64% of closed sales were all-cash, the vast majority to international buyers, the Miami Association of Realtors said.
In Broward County, the median sales price of single-family homes rose 17% in April to $205,000 and condominiums also jumped 17% to $84,300 compared to a year ago. In Dade, single-family homes are up 8.2% to $183,000 and condos are up 30% to $150,000, according to the Miami Association of Realtors.
The inventory of residential listings has decreased 34% to 11,878 in Dade and 30% in Broward down to 11,086 in the past year. The number of distressed properties as a percentage of closed residential sales is down 20% in Dade and 24% in Broward from a year ago.
Latin American real estate investors paying in cash are finding property deals in Florida and helping to buy-up distressed homes. Their spending spree, driven primarily by newly wealthy Venezuelans and Brazilians looking to spend in Miami, is helping revitalize Florida’s property market. The buyers are motivated by shrinking market opportunities and soaring real estate prices in their home countries, and the result in 2011 was a 40% spike in home sales over the last year in Miami. Florida developers are responding to the increased interest by crafting more cash-focused financing options for foreign buyers.
Their pesos are being welcomed with open arms because they are helping to unclog the logjam of unsold and foreclosed houses, a jam-up many believe must be cleared before residential real estate can regain its equilibrium.
Meridian Trust Investments has been making successful real estate deals in the South Florida marketplace with buyers and sellers at all levels for over a decade. Our business continues to grow and flourish despite the challenges the real estate market has experienced. Our clients can consistently count on us to find the best deals, close on those deals and get the property ready to rent or resell.
Content Sources: www.miamiherald.com/2012/05/22/2812487/south-florida-real-estate-market-looks-hot-again, www.nuwireinvestor.com/articles/foreign-property-buyers-flock-to-florida-bring-cash