Second-quarter 2018 saw increased sales, higher median prices and more new listings for Florida’s housing market, according to the latest housing data released by Florida Realtors®. Many local markets continued to report a lack of for-sale inventory, which impacts sales and puts pressure on rising median prices. Closed sales of single-family homes statewide totaled 80,711 in 2Q 2018, up 1 percent from the 2Q 2017 figure.
“During the second quarter of 2018, Florida’s economy and jobs sector continued to grow,” said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale. “In June, the state’s unemployment rate was 3.8 percent while the U.S. unemployment rate was 4.0 percent. On another positive note, Florida’s 2Q 2018 homeownership rate was 65.1 percent.
“Despite tight inventory levels, it’s encouraging to see that new listings for single-family homes over the quarter rose 4.9 percent year-over-year, while new condo-townhouse listings rose 3.9 percent. If that trend continues, it will hopefully help ease buyer demand and slow the pace of rising prices.”
The statewide median sales price for single-family existing homes in 2Q 2018 was $256,150, up 6.7 percent from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $189,900, up 8.5 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Looking at Florida’s condo-townhouse market, statewide closed sales totaled 34,376 during 2Q 2018, up 4.7 percent compared to 2Q 2017. The closed sales data reflected fewer short sales – and rising traditional sales – over the three-month period: Short sales for condo-townhouse properties declined 41.4 percent while short sales for single-family homes dropped 45.2 percent. Meanwhile, traditional sales for condo-townhouse units rose 6.8 percent and traditional sales for single-family homes increased 4.3 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written.
“Through the second quarter, low inventory levels kept the number of single-family sales just barely ahead of last year’s pace, whereas a greater selection of condos and townhouses on the market allowed for a nearly 5 percent increase in sales versus last year,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “Competition for existing homes remains fierce, with over half of successful single-family home sellers in the second quarter getting above 96 percent of their initial listing prices.”
He added that the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) dropped during the three-month-period.
“Half of the single-family homes that sold in the second quarter were only on the market for 35 days or less, compared to 39 days or less in the same quarter last year,” O’Connor said. “Among condo and townhouse sales, there was a similar-sized drop in this regard, from 50 to 44 days.”
Inventory was at a 3.9-months’ supply in the second quarter for single-family homes and at a 5.5-months’ supply for condo-townhouse properties, according to Florida Realtors.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.54 percent for 2Q 2018, up from the 3.99 percent recorded during the same quarter a year earlier.
To see the full statewide housing activity reports, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the 2Q 2018 data report PDFs under Market Data here.
Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 180,000 members in 54 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.
Wednesday, August 15, 2018
Sunday, August 12, 2018
Miami Condo Sales Takeoff in Mid 2018!
According to the Miami Association of Realtors, Miami-Dade County existing condominium sales surged 5.6 percent in 2Q 2018 as median prices for all properties rose for the 26th consecutive quarter.
Miami condo transactions jumped 5.6 percent, from 3,818 in 2Q 2017 to 4,033 in 2Q 2018. Miami existing single-family sales decreased 2.6 percent, from 3,882 to 3,782. The change is due to a lack of single-family home inventory in lower and mid-price points.
"Miami condo home buyers are finding great opportunities particularly in the $250,000 to $600,000 range," MIAMI Chairman of the Board George C. Jalil said. "Miami condo sales in the $250,000 to $600,000 range increased 15.7 percent year-over-year, which helped fuel the sector's robust quarter."
Total Home Sales Increase in 1Q 2018
Total existing Miami-Dade County residential sales increased 1.5 percent year-over-year in 2Q 2018, from 7,700 to 7,815.
Total sales volume accounted for $3.9 billion in 1Q 2018, an increase from the $3.3 billion sales volume a year ago. The sales do not include Miami's multi-billion dollar new construction condo market.
Non-distressed sales comprised 94 percent of all closed residential sales in 2Q 2018 vs. 90 percent in 2Q 2017. Only 6.3 percent of all closed residential sales in Miami were distressed in 2Q 2018, including REO (bank-owned properties) and short sales, compared to 9.7 percent in 2Q 2017. In 2009, distressed sales comprised nearly 70 percent of Miami sales.
Short sales and REOs accounted for 1.5 and 4.8 percent, respectively, of total Miami sales in 2Q 2018. Short sale transactions decreased 36.8 percent year-over-year while REOs fell 33.6 percent
Miami Luxury Homes Sales Jump 18.2 Percent
Total luxury home sales ($1 million and above) jumped 18.2 percent, from 500 in 2Q 2017 to 591 in 2Q 2018.
Condo luxury sales fueled the $1-million-and-above transaction surge, increasing 37.1 percent in 2Q 2018. Single-family luxury transactions increased 5.9 percent in 2Q 2018.
A rise in sales among mid-priced condos also played a key role in 2Q 2018. Miami condo sales in the $250,000 to $600,000 range increased 15.7 percent year-over-year, from 1,213 sales to 1,403.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.54 percent for 2Q 2018, up from the 3.99 percent recorded during the same quarter a year earlier.
Miami Median Prices Rise for 26th Consecutive Quarter
The median price for single-family homes in Miami-Dade County increased to $350,000 in the second quarter, a 6.6 percent jump from $328,300 in the same period last year. The median price for existing condominiums increased 5.2 percent year-over-year from $229,000 to $240,875.
Median prices have now increased for 26 consecutive quarters, a streak spanning 6.5 years.
Statewide, the median sales price for single-family existing homes in 2Q 2018 was $256,150, up 6.7 percent from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $189,900, up 8.5 percent over the year-ago figure.
The national median existing single-family home price in the second quarter was $269,000, which is up 5.3 percent from the second quarter of 2017 ($255,400) and surpasses last year's second quarter as the new peak, according to the National Association of Realtors.
Hot Markets Overview Reveals Strong Demand and Limited Supply in Many Local Areas
Months' supply of inventory is a strong indicator of real estate activity. Top Miami neighborhoods with the lowest months of supply of inventory in 2Q 2018:
Single-Family Homes
Richmond Heights, a small community south of Kendall, had 8 months supply
Miami Gardens, a north Dade community along the Broward line, had 2 months supply
South Miami Heights, a south Dade community west of Cutler Bay, had 2.3 months supply
Palm Springs North, a northwestern Dade community south of the Broward line, had 2.3 months supply
Palmetto Estates, a South Dade community west of Palmetto Bay, had 2.4 months supply
Condominiums
Naranja, a south Dade community north of Leisure City, had 8 months supply
The Crossings, a South Dade community west of Kendall, had 0 months supply
Tamiami, a South Dade community west of Kendall, had 2.5 months supply
Three Lakes, a South Dade community west of Kendall, had 2.7 months supply
Hialeah Gardens, a North Dade community west of Hialeah, had 2.7 months supply
National, State Home Sales in 2Q 2018
Nationwide existing-home sales, including single family and condos, decreased 1.7 percent to a seasonally adjusted annual rate of 5.41 million in the second quarter from 5.51 million in the first quarter, and are 2.4 percent lower than the 5.55 million pace during the second quarter of 2017, according to NAR.
Closed sales of single-family homes statewide totaled 80,711 in 2Q 2018, up 1 percent from the 2Q 2017 figure, according to Florida Realtors. Looking at Florida's condo-townhouse market, statewide closed sales totaled 34,376 during 2Q 2018, up 4.7 percent compared to 2Q 2017.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
At the current sales pace, the number of active listings represents 6.0 months of inventory for single-family homes and 13.9 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Miami real estate had 21,470 active listings in the second quarter, a 1.7 percent increase from the 21,119 listings at the same time last year. The inventory for single-family homes increased 2.5 percent, from 6,052 to 6,206. Miami existing condo inventory grew 1.3 percent, from 15,067 to 15,264.
Miami Homes Selling Close to List Price
The median percent of original list price received was 95.9 percent for single-family homes and 93.5 percent for condos in 2Q 2018.
The median time to contract for single-family home listings was 44 days, a 10.2 percent decrease from 49 days in 2Q 2017. The median time to contract for existing condos was 77 days, a 4.1 percent increase from 74 days in 2Q 2017.
The median time to sale for single-family homes decreased 7 percent, from 100 days to 93. The median time to sale for existing condos stayed the same at 116 days.
Miami Cash Sales Almost Double National Figure
Cash sales represented 38.1 percent of Miami closed sales in the second quarter of 2018, compared to 38.6 percent in 2Q 2017. About 20 percent of U.S. home properties are made in cash, according to the latest NAR statistics. The high percentage of cash buyers reflects Miami's top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 52.2 percent of all Miami existing condo sales and 23.1 percent of single-family transactions.
Miami condo transactions jumped 5.6 percent, from 3,818 in 2Q 2017 to 4,033 in 2Q 2018. Miami existing single-family sales decreased 2.6 percent, from 3,882 to 3,782. The change is due to a lack of single-family home inventory in lower and mid-price points.
"Miami condo home buyers are finding great opportunities particularly in the $250,000 to $600,000 range," MIAMI Chairman of the Board George C. Jalil said. "Miami condo sales in the $250,000 to $600,000 range increased 15.7 percent year-over-year, which helped fuel the sector's robust quarter."
Total Home Sales Increase in 1Q 2018
Total existing Miami-Dade County residential sales increased 1.5 percent year-over-year in 2Q 2018, from 7,700 to 7,815.
Total sales volume accounted for $3.9 billion in 1Q 2018, an increase from the $3.3 billion sales volume a year ago. The sales do not include Miami's multi-billion dollar new construction condo market.
Non-distressed sales comprised 94 percent of all closed residential sales in 2Q 2018 vs. 90 percent in 2Q 2017. Only 6.3 percent of all closed residential sales in Miami were distressed in 2Q 2018, including REO (bank-owned properties) and short sales, compared to 9.7 percent in 2Q 2017. In 2009, distressed sales comprised nearly 70 percent of Miami sales.
Short sales and REOs accounted for 1.5 and 4.8 percent, respectively, of total Miami sales in 2Q 2018. Short sale transactions decreased 36.8 percent year-over-year while REOs fell 33.6 percent
Miami Luxury Homes Sales Jump 18.2 Percent
Total luxury home sales ($1 million and above) jumped 18.2 percent, from 500 in 2Q 2017 to 591 in 2Q 2018.
Condo luxury sales fueled the $1-million-and-above transaction surge, increasing 37.1 percent in 2Q 2018. Single-family luxury transactions increased 5.9 percent in 2Q 2018.
A rise in sales among mid-priced condos also played a key role in 2Q 2018. Miami condo sales in the $250,000 to $600,000 range increased 15.7 percent year-over-year, from 1,213 sales to 1,403.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.54 percent for 2Q 2018, up from the 3.99 percent recorded during the same quarter a year earlier.
Miami Median Prices Rise for 26th Consecutive Quarter
The median price for single-family homes in Miami-Dade County increased to $350,000 in the second quarter, a 6.6 percent jump from $328,300 in the same period last year. The median price for existing condominiums increased 5.2 percent year-over-year from $229,000 to $240,875.
Median prices have now increased for 26 consecutive quarters, a streak spanning 6.5 years.
Statewide, the median sales price for single-family existing homes in 2Q 2018 was $256,150, up 6.7 percent from the same time a year ago, according to Florida Realtors. The statewide median price for condo-townhouse properties during the quarter was $189,900, up 8.5 percent over the year-ago figure.
The national median existing single-family home price in the second quarter was $269,000, which is up 5.3 percent from the second quarter of 2017 ($255,400) and surpasses last year's second quarter as the new peak, according to the National Association of Realtors.
Hot Markets Overview Reveals Strong Demand and Limited Supply in Many Local Areas
Months' supply of inventory is a strong indicator of real estate activity. Top Miami neighborhoods with the lowest months of supply of inventory in 2Q 2018:
Single-Family Homes
Richmond Heights, a small community south of Kendall, had 8 months supply
Miami Gardens, a north Dade community along the Broward line, had 2 months supply
South Miami Heights, a south Dade community west of Cutler Bay, had 2.3 months supply
Palm Springs North, a northwestern Dade community south of the Broward line, had 2.3 months supply
Palmetto Estates, a South Dade community west of Palmetto Bay, had 2.4 months supply
Condominiums
Naranja, a south Dade community north of Leisure City, had 8 months supply
The Crossings, a South Dade community west of Kendall, had 0 months supply
Tamiami, a South Dade community west of Kendall, had 2.5 months supply
Three Lakes, a South Dade community west of Kendall, had 2.7 months supply
Hialeah Gardens, a North Dade community west of Hialeah, had 2.7 months supply
National, State Home Sales in 2Q 2018
Nationwide existing-home sales, including single family and condos, decreased 1.7 percent to a seasonally adjusted annual rate of 5.41 million in the second quarter from 5.51 million in the first quarter, and are 2.4 percent lower than the 5.55 million pace during the second quarter of 2017, according to NAR.
Closed sales of single-family homes statewide totaled 80,711 in 2Q 2018, up 1 percent from the 2Q 2017 figure, according to Florida Realtors. Looking at Florida's condo-townhouse market, statewide closed sales totaled 34,376 during 2Q 2018, up 4.7 percent compared to 2Q 2017.
Balanced Market for Single-Family Homes, Buyer's Market for Condos
At the current sales pace, the number of active listings represents 6.0 months of inventory for single-family homes and 13.9 for condominiums. A balanced market between buyers and sellers offers between six and nine months of supply inventory.
Miami real estate had 21,470 active listings in the second quarter, a 1.7 percent increase from the 21,119 listings at the same time last year. The inventory for single-family homes increased 2.5 percent, from 6,052 to 6,206. Miami existing condo inventory grew 1.3 percent, from 15,067 to 15,264.
Miami Homes Selling Close to List Price
The median percent of original list price received was 95.9 percent for single-family homes and 93.5 percent for condos in 2Q 2018.
The median time to contract for single-family home listings was 44 days, a 10.2 percent decrease from 49 days in 2Q 2017. The median time to contract for existing condos was 77 days, a 4.1 percent increase from 74 days in 2Q 2017.
The median time to sale for single-family homes decreased 7 percent, from 100 days to 93. The median time to sale for existing condos stayed the same at 116 days.
Miami Cash Sales Almost Double National Figure
Cash sales represented 38.1 percent of Miami closed sales in the second quarter of 2018, compared to 38.6 percent in 2Q 2017. About 20 percent of U.S. home properties are made in cash, according to the latest NAR statistics. The high percentage of cash buyers reflects Miami's top position as the preeminent American real estate market for foreign buyers, who tend to purchase with all cash.
Cash sales accounted for 52.2 percent of all Miami existing condo sales and 23.1 percent of single-family transactions.
Thursday, August 9, 2018
Building a New Construction Home in Miami? How Much Does It Cost?
Deciding to build a home is exciting—it's no wonder that more than 1,000,000 new residences are projected to go up this year. Still, if this thought has crossed your mind, you have also probably wondered: How much does it cost to build a home, anyway?
According to data from the National Association of Home Builders, the median price of constructing a single-family home in 2015 was $289,415, or $103 per square foot. And according to the U.S. Census, the median size of a newly built single-family house in 2015 was 2,467 square feet. That price can vary widely based on where you live, though. (Want a more targeted estimate? Go to realtor.com®/local to find out the price per square foot in your area.)
So why does building a home cost so much? Let's break down the costs, shall we?
Related Articles
How to Buy Land: Tips to Pick the Perfect Plot
6 Building Mistakes That Can Turn Your Custom Dream House Into a Dump
More New Homes in the Pipeline for Buyers
The main costs to build a home
There are a few main costs involved in the construction of a home, says Andy Stauffer, owner and president of Stauffer and Sons Construction. Sure, each time you build a home, costs are a little different, but here are the biggies:
The shell of the house, which includes walls, windows, doors, and roofing, can account for a third of the homes total cost, or $95,474.
Interior finishes such as cabinets, flooring, and countertops can eat up another third of the budget, averaging $85,642. Use this calculator to plug in your ZIP code, exact square footage, and level of finish to come up with a general budget for various projects.
Mechanicalthink plumbing and heatingruns around 13%, or $37,843.
Kitchens and bathrooms are the most expensive rooms to build, especially when the average cost for finishes like cabinets and countertops alone is $16,056. So if you're looking to save money, ask yourself whether you really need that third full bathroom, or will two plus a half-bath do?
Architect and engineer drawings will run about $4,583.
Additional costs to build a house (not included)
Now you know the basic cost to build a home, but the expenses don't end there. Here are a few extra costs you'll need to be aware of that aren't factored into the above price:
The cost of a plot of land to build on averages $3,020 per acre. That said, the average home is built on only 0.2 acres, so unless you want a lot of space in a highly desired neighborhood, that alone won't break the bank.
Excavation and foundation work are by far the most variable cost when building a home, according to Morgan Franklin of Kentucky's LexHomeHub. In other words, you never know what youre going to find until you start diggingbe it bad soil or massive boulders. If excavation and foundation work goes relatively smoothly, the average cost for both is $33,447.
You'll need a building permit, of courseit averages $908 nationally.
Other costs you'll incur before you hammer even one nail include land inspections ($4,191) and an impact fee, levied by the government to cover the costs a new home will incur on public services like electricity and waste removal ($1,742).
Why build a home?
That's a fair question—particularly since you can buy an existing single-family house for a median price of $223,000, or $66,415 less than building one. You will also save yourself the headaches that inevitably come with construction.
Still, building a home does have its advantages. Everything from pipes to the heating and cooling systems will be new. That means no costly repairs in the near future—and so a newly built home could end up costing less in the long run. Plus, of course, you get to design your home to your exact specifications. If you have very clear ideas of how you want your home to look, this blank slate could be worth every penny. (That said, designing your dream home from scratch has its challenges, too, so make sure to not make these mistakes.)
According to data from the National Association of Home Builders, the median price of constructing a single-family home in 2015 was $289,415, or $103 per square foot. And according to the U.S. Census, the median size of a newly built single-family house in 2015 was 2,467 square feet. That price can vary widely based on where you live, though. (Want a more targeted estimate? Go to realtor.com®/local to find out the price per square foot in your area.)
So why does building a home cost so much? Let's break down the costs, shall we?
Related Articles
How to Buy Land: Tips to Pick the Perfect Plot
6 Building Mistakes That Can Turn Your Custom Dream House Into a Dump
More New Homes in the Pipeline for Buyers
The main costs to build a home
There are a few main costs involved in the construction of a home, says Andy Stauffer, owner and president of Stauffer and Sons Construction. Sure, each time you build a home, costs are a little different, but here are the biggies:
The shell of the house, which includes walls, windows, doors, and roofing, can account for a third of the homes total cost, or $95,474.
Interior finishes such as cabinets, flooring, and countertops can eat up another third of the budget, averaging $85,642. Use this calculator to plug in your ZIP code, exact square footage, and level of finish to come up with a general budget for various projects.
Mechanicalthink plumbing and heatingruns around 13%, or $37,843.
Kitchens and bathrooms are the most expensive rooms to build, especially when the average cost for finishes like cabinets and countertops alone is $16,056. So if you're looking to save money, ask yourself whether you really need that third full bathroom, or will two plus a half-bath do?
Architect and engineer drawings will run about $4,583.
Additional costs to build a house (not included)
Now you know the basic cost to build a home, but the expenses don't end there. Here are a few extra costs you'll need to be aware of that aren't factored into the above price:
The cost of a plot of land to build on averages $3,020 per acre. That said, the average home is built on only 0.2 acres, so unless you want a lot of space in a highly desired neighborhood, that alone won't break the bank.
Excavation and foundation work are by far the most variable cost when building a home, according to Morgan Franklin of Kentucky's LexHomeHub. In other words, you never know what youre going to find until you start diggingbe it bad soil or massive boulders. If excavation and foundation work goes relatively smoothly, the average cost for both is $33,447.
You'll need a building permit, of courseit averages $908 nationally.
Other costs you'll incur before you hammer even one nail include land inspections ($4,191) and an impact fee, levied by the government to cover the costs a new home will incur on public services like electricity and waste removal ($1,742).
Why build a home?
That's a fair question—particularly since you can buy an existing single-family house for a median price of $223,000, or $66,415 less than building one. You will also save yourself the headaches that inevitably come with construction.
Still, building a home does have its advantages. Everything from pipes to the heating and cooling systems will be new. That means no costly repairs in the near future—and so a newly built home could end up costing less in the long run. Plus, of course, you get to design your home to your exact specifications. If you have very clear ideas of how you want your home to look, this blank slate could be worth every penny. (That said, designing your dream home from scratch has its challenges, too, so make sure to not make these mistakes.)
Wednesday, August 8, 2018
Keystone Point North Miami Real Estate58 homes for sale.
KEYSTONE POINT REAL ESTATE FACTS:
Total Homes for Sale: 53
AVERAGE HOME VALUES BY CITY
Bal Harbour $1,043,000
Bay Harbor Islands $289,300
Golden Glades $203,600n
Indian Creek -
Miami Beach $383,700
For more information, or for a FREE HOME EVALUATION, call: (786) 525-9430.
Lazaro Lopez, PA
Fortune Int'l Realty
1390 Brickell Ave, Suite 104
Miami, Fl. 33131
(786) 525-9430
http://www.LazaroLopez.com
Total Homes for Sale: 53
AVERAGE HOME VALUES BY CITY
Bal Harbour $1,043,000
Bay Harbor Islands $289,300
Golden Glades $203,600n
Indian Creek -
Miami Beach $383,700
For more information, or for a FREE HOME EVALUATION, call: (786) 525-9430.
Lazaro Lopez, PA
Fortune Int'l Realty
1390 Brickell Ave, Suite 104
Miami, Fl. 33131
(786) 525-9430
http://www.LazaroLopez.com
Thursday, July 26, 2018
South Florida Luxury Condo sales up, home sales rise despite low inventory...
The luxury condo market, a recent sore spot in South Florida due to over development in places like Miami Beach and the Miami mainland, saw strong sales activity and price increases.
Luxury condo inventory in Miami Beach and the barrier islands fell 20% from a year ago. It’s a positive sign that new development, which wound down in 2016 amid tough market conditions, will likely pick up again soon.
The median sales price for a luxury condo in Miami Beach soared to $3.37 million in the second quarter, up 47.6% from $2.28 million last year. Luxury single-family homes on Miami Beach hit $10.76 million in the second quarter, up 34% from $8 million last year.
In mainland Miami, the median price for luxury condos rose 6% year-over-year to nearly $815,000.
Fort Lauderdale’s luxury condo market is moving twice as fast as it was a year ago. And high-end condo markets heated up in Delray and in Palm Beach, which by the end of June had only six months of condo inventory, according to the report.
The strength in areas north of Miami underscores a shift in buying patterns. The historical focus of the second home buyer was Miami, Miami Beach. While that market hasn’t experienced any pain as a result of the shift to the north, buyers from other markets are recognizing the value opportunities in Broward County and elsewhere in South Florida.
South Florida logged robust home sales, especially among luxury condos, in the second quarter of 2018, according to reports Thursday from Douglas Elliman.
Palm Beach saw the greatest number of sales in a single quarter in three years, with 160 homes changing hands on the exclusive island north of Miami. Luxury condo sales in Miami Beach and the barrier islands increased more than 13% compared to this time last year, while luxury condo sales and prices soared in Fort Lauderdale, according to market reports prepared for the brokerage by appraisal firm Miller Samuel.
We’re seeing overall and consistently strong gains in each of our markets. Some of the boost in South Florida are snowbirds leaving high-tax states like New York and Connecticut for good in response to the federal tax overhaul that Congress passed in December.
By the end of June, Miami Beach had 31 months’ worth of luxury condos on the market, down from 44 months a year ago. “The pace of the market feels faster, it’s not fast but it’s faster. The second quarter also marked a jump in the size of units trading hands a sign that big spenders are back in play and looking for more lavish homes.
Luxury condo inventory in Miami Beach and the barrier islands fell 20% from a year ago. It’s a positive sign that new development, which wound down in 2016 amid tough market conditions, will likely pick up again soon.
The median sales price for a luxury condo in Miami Beach soared to $3.37 million in the second quarter, up 47.6% from $2.28 million last year. Luxury single-family homes on Miami Beach hit $10.76 million in the second quarter, up 34% from $8 million last year.
In mainland Miami, the median price for luxury condos rose 6% year-over-year to nearly $815,000.
Fort Lauderdale’s luxury condo market is moving twice as fast as it was a year ago. And high-end condo markets heated up in Delray and in Palm Beach, which by the end of June had only six months of condo inventory, according to the report.
The strength in areas north of Miami underscores a shift in buying patterns. The historical focus of the second home buyer was Miami, Miami Beach. While that market hasn’t experienced any pain as a result of the shift to the north, buyers from other markets are recognizing the value opportunities in Broward County and elsewhere in South Florida.
South Florida logged robust home sales, especially among luxury condos, in the second quarter of 2018, according to reports Thursday from Douglas Elliman.
Palm Beach saw the greatest number of sales in a single quarter in three years, with 160 homes changing hands on the exclusive island north of Miami. Luxury condo sales in Miami Beach and the barrier islands increased more than 13% compared to this time last year, while luxury condo sales and prices soared in Fort Lauderdale, according to market reports prepared for the brokerage by appraisal firm Miller Samuel.
We’re seeing overall and consistently strong gains in each of our markets. Some of the boost in South Florida are snowbirds leaving high-tax states like New York and Connecticut for good in response to the federal tax overhaul that Congress passed in December.
By the end of June, Miami Beach had 31 months’ worth of luxury condos on the market, down from 44 months a year ago. “The pace of the market feels faster, it’s not fast but it’s faster. The second quarter also marked a jump in the size of units trading hands a sign that big spenders are back in play and looking for more lavish homes.
Wednesday, July 18, 2018
Brickell City Centre seeks 2M-square-foot expansion
Brickell City Centre has submitted an expansion to build on two additional city blocks.
The proposal would amend the Special Area Plan regulating the development, and increase the SAP area from 11.4 acres to 13.9 acres.
In total, four more towers are now planned at Brickell City Centre, including One Brickell City Centre, North Block, the Tobacco Road site, and Associated Photo property.
The plans have just been recently submitted to the city, have not yet been reviewed, and are subject to change. As of now, the two new towers include:
650 SMA (Tobacco Road site):
54 story tower, with 10-story podium
588 residential units (of which 42 will be under 750 square feet)
89,130 square feet of retail/commercial
839 parking spaces
1.66 acre project site
Associated Photo:
62 story tower, with 12-story podium
384 residential units (of which 144 will be under 750 square feet)
3,200 square feet of commercial/retail
363 parking spaces
.73 acre project site
Parking will be in garages above ground. Most of the existing parking at Brickell City Centre is below ground, and One Brickell City Centre and the North Block are planned to have below grade parking.
Arquitectonica is the project architect.
Saturday, July 7, 2018
Florida was the top state where outside investors purchased and sold commercial property...
Foreign Investment in U.S. Commercial Real Estate Remains Strong, China and Mexico Top Investors
Florida was the top state where outside investors purchased and sold commercial property last year; California was third
WASHINGTON — Nearly one-fifth of Realtors® practicing in commercial real estate closed a sale with an international client in 2017, and 35 percent said they have experienced an increase in the number of international clients in the past five years, according to a report from the National Association of Realtors®.
NAR’s 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017. The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million.
“The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, bringing Realtors® confidence that increased sales and leasing activity will continue to occur in 2018,” said Lawrence Yun, NAR chief economist.
“Since 2016, world economies have regained their footing and have pressed toward higher ground. Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors,” Yun added.
Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year (69 percent in 2016), 18 percent reported closing a deal for an international client (20 percent in 2016). Among survey respondents who closed an international transaction, 46 percent closed a buyer-side transaction, 13 percent a seller-side transaction and the remainder closed both types of transactions.
Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57 percent) were of properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas.
Nineteen percent of Realtors® said they completed a lease agreement on behalf of a foreign client, down from 22 percent in 2016. The median gross lease value for international lease transactions was $200,000 ($105,000 in 2016) with most space typically under 2,500 square feet.
The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent).
Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.
International commercial buyer and seller transactions typically tend to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000.
“Realtors®’ international clients found U.S. commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country,” Yun stated.
The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR's 2017 residential survey found that half of buyers paid in cash.
For those not using all cash, 25 percent of commercial deals involved debt financing from U.S. sources. A majority of buyers purchased commercial space for rental property (39 percent) or for business investment purposes (34 percent).
NAR’s commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.
Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business.
The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
Tags: Real Estate
Florida was the top state where outside investors purchased and sold commercial property last year; California was third
WASHINGTON — Nearly one-fifth of Realtors® practicing in commercial real estate closed a sale with an international client in 2017, and 35 percent said they have experienced an increase in the number of international clients in the past five years, according to a report from the National Association of Realtors®.
NAR’s 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017. The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million.
“The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, bringing Realtors® confidence that increased sales and leasing activity will continue to occur in 2018,” said Lawrence Yun, NAR chief economist.
“Since 2016, world economies have regained their footing and have pressed toward higher ground. Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors,” Yun added.
Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year (69 percent in 2016), 18 percent reported closing a deal for an international client (20 percent in 2016). Among survey respondents who closed an international transaction, 46 percent closed a buyer-side transaction, 13 percent a seller-side transaction and the remainder closed both types of transactions.
Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57 percent) were of properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas.
Nineteen percent of Realtors® said they completed a lease agreement on behalf of a foreign client, down from 22 percent in 2016. The median gross lease value for international lease transactions was $200,000 ($105,000 in 2016) with most space typically under 2,500 square feet.
The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent).
Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.
International commercial buyer and seller transactions typically tend to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000.
“Realtors®’ international clients found U.S. commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country,” Yun stated.
The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR's 2017 residential survey found that half of buyers paid in cash.
For those not using all cash, 25 percent of commercial deals involved debt financing from U.S. sources. A majority of buyers purchased commercial space for rental property (39 percent) or for business investment purposes (34 percent).
NAR’s commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.
Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business.
The National Association of Realtors® is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
Tags: Real Estate
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