Miami Has Become a Global Gateway much Like NY or San Francisco

Miami has become known as a "global gateway," much like New York and San Francisco, that attracts deep-pocketed investors from all over the world, said Neisen Kasdin, a real estate development attorney and former mayor of the city of Miami Beach.

The influx of buyers, combined with the economic recovery in the U.S., has created a dramatic turnaround in Miami's housing market. Sales of single-family homes in Miami climbed 10.3% during the first three months of 2013 compared with 12 months earlier and prices jumped 23%, according to the Florida Association of Realtors.

Our local real estate markets enjoys great stability since most sales are cash. About 45% of single-family home sales and 77% of condo sales were made in all cash, reflecting the heavy foreign presence. More than 90% of sales to foreigners in Miami are made in cash.

All but 600 of the 23,000 bubble-era condos that once languished on the Miami market have been sold, according to the Miami Association of Realtors. "Two years ago, Miami was the poster child for distressed real estate in the United States," said J. Miller, "It has now morphed into a luxury brand."

Perhaps the most prominent factor on this influx of foreign money has been the political changes in South America. It was not only Chavez but also the Left-of-center politicians elected in Bolivia and other Latin American countries have encouraged wealthy citizens of those nations to look for a safe haven in Florida as well.  The buying began in earnest when Hugo Chavez started running the country in 1998. While the Socialist president was considered a hero among the working-class, many wealthy Venezuelans considered him a tyrant. The fears of unrest surrounding his October 2012 reelection triggered another infusion of Venezuelan cash into the Miami real estate market. Local real estate agents joked at the time that Chavez should have been named Miami's "Salesman of the Year".  After Chavez died in March of this year, the ensuing election that put his successor, Nicolas Maduro in office also stirred up fears -- and more home buying in Miami.

Now another equally important factor contributing to the growth of our local real estate market is the favor that the city enjoys in the eyes of deep-pocketed investors. Investors from Brazil and Argentina, where the economies are booming, are also putting their excess cash in safe Florida real estate. And as mentioned during the past weeks Europeans as well as Asians have began to make their own mark Miami. That old inventory is gone and as a result many projects are under construction in the recently born global gateway. *Notes taken from CNNMoney.

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