Rental Properties in great Demand in the Miami Real Estate Market

Developers are really busy these days as there is an increasing demand for Rental properties in Miami. This could be a golden opportunity for investors who would like to see a quick safe return on their investment. Miami’s roller coaster real estate market is booming again after its worst crash left dozens of unfinished buildings and failed condo projects.

Related Group of Florida, Adler Group and Area Property Partners LP, are among builders developing amid a shortage of rental properties as the economy improves. The average rent for a two-bedroom apartment increased 6 percent to $2,568 a month in the third quarter, compared with the year ago period, according to Condo Vultures LLC, a brokerage and consulting firm.

“There’s a boom in Miami that we’ve never seen before,” said Stephen Ross, chairman and founder of New York-based Related Cos. and owner of the Miami Dolphins football team, at the Bloomberg Commercial Real Estate Conference in New York on Nov. 13. “Miami is probably the hottest real estate market in the U.S. from a residential perspective.”

With most of the unsold, unoccupied condo towers that dominated the Miami skyline as recently as two years ago converted to rentals, the number of multifamily developments is soaring, according to Dallas-based Witten Advisors LLC. The research firm forecasts as many as 3,000 rental units per year may be added through 2015 in Miami-Dade County, which includes the metropolitan area and downtown, more than double the average annual totals of the past three years.

Rental activity in greater downtown Miami, including for condos and apartments, jumped 12 percent in the third quarter to 1,650 from a year ago, Bal Harbour, Florida-based Condo Vultures estimates. *Notes taken from Nadja Brandt in an article for Bloomberg.com

To Buy, Sell or Rent Properties in Miami go to http://www.JuanSolerRealtor.com  

The Miami Real Estate market remained a Solid Investment

Most financial analysts agree that Miami Real Estate is and will be a very solid investment for your portfolio.  

According to Jason Burroughs, the Miami real estate market continues to boost as it approaches a complete year of noteworthy price increases driven by higher sales and an inventory shortage, according to the latest report from the Miami Association of Realtors. Regardless of very limited inventory, total residential sales in Miami-Dade County moved up 24.2% in October versus a year earlier. The sales of existing condominiums in Miami-Dade moved up 13.1% while sales of single family homes grew 41.9%.

Martha Pomares, chairman of the board of the Miami Association of Realtors, said that strong demand for Miami properties is driving robust price appreciation. She added that demand from investors, foreign and vacation buyers as well as US and local residents continues to be very strong.\

To Buy, Sell or Rent Properties in Miami go to http://www.JuanSolerRealtor.com  

Miami and U.S. home prices rose last year by most in 6.5 years

According to Associated Press economics writer Christopher S. Rugaber, U.S. home prices jumped by the most in 6 1/2 years in December, spurred by a low supply of available homes and rising demand.

He also pointed out that  Home prices rose 8.3 percent in December compared with a year earlier, according to a report Tuesday from CoreLogic, a real estate data provider. That is the biggest annual gain since May 2006. Prices rose last year in 46 of 50 states.

Home prices also increased 0.4 percent in December from the previous month. That’s a healthy increase given that sales usually slow over the winter months.
Steady increases in prices are helping fuel the housing recovery. They’re encouraging some people to sell homes and enticing would-be buyers to purchase homes before prices rise further. Higher prices can also make homeowners feel wealthier. That can encourage more consumer spending.

To read the full article go to the Florida Association of Realtors website.

To Buy, Sell or Rent Properties in Miami go to http://www.JuanSolerRealtor.com  

Miami Pending Sales Continue to Increase in December, Rise 8.4% Year-Over-Year

Miami, FL – The total number of listings, including single-family homes and condominiums, that pended* in Miami-Dade County during the month of December increased 8.4 percent, from 2,834 to 3,073, year-over-year but decreased nine percent compared to the previous month, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) systems.  The number of single-family and condominium listings that pended in December increased 11.2 percent and 6.3 percent respectively compared to December 2011.

“Following another record sales year in 2012, the Miami real estate market continues to reflect strong demand from both U.S. and foreign buyers,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS Natascha Tello. “It is truly remarkable that we continue to experience such high sales levels despite the lack of housing supply in Miami-Dade County.”

While the number of new listings rose for condominiums, fewer single-family homes were listed in December than the previous year.  The housing shortage in Miami-Dade County persists as active inventory remains below what is considered a balanced market.  

In December, 1,306 single-family homes and 2,014 condominiums were listed, reflecting an 8.2 percent decrease and 3.9 percent increase respectively when compared to December 2011.

“The Miami real estate market needs more properties for sale to satisfy demand,” said 2013 MIAMI Association of REALTORS Residential President Fernando I. Martinez. “Given the strong demand and rising prices, it is a great time to sell a home in Miami.  Sellers who have been waiting to sell, should seize the opportunity.”

Sellers Offering Few Discounts
Limited supply coupled with rising demand is yielding offers that are increasingly closer to asking price, as sellers offer fewer discounts.  In December, single-family home and condominium sales received 94.2 percent and 96.2 percent respectively the averages of the original list price, compared to 91 percent and 94.6 percent in December 2011.  The increase in percent of original list price received is an indication that rising demand is absorbing inventory more rapidly.

Nationally, the Pending Home Sales Index, a forward-looking indicator based on contract signings, fell 4.3 percent to 101.7 in December from 106.3 in November, according to the National Association of Realtors. The index is 6.9 percent higher than the 95.1 reported in December 2011.

Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. “Pended sales” are defined as only the sales that pended during a particular month. * Source: Miami Association of Realtors. 

To Buy, Sell or Rent Properties in Miami go to http://www.JuanSolerRealtor.com  

30-Year Fixed Mortgage Rates Hit Five Month-High in US, Says Zillow

According to Zillow this week, 30-year fixed rate mortgages in the US are currently at 3.42 percent, up 14 basis points from 3.28 percent at this same time last week. After jumping to 3.45 percent on Friday, the 30-year fixed rate stayed flat over the remainder of the weekend before dropping to the current rate this morning.

"Mortgage rates spiked to a 5 month-high last week as markets reacted to positive domestic and international economic news. Another strong weekly jobs report suggested the U.S. economic recovery is picking up steam," said Erin Lantz, director of Zillow Mortgage Marketplace. "Abroad, markets welcomed news that many banks were planning to pay back the European Central Bank earlier than expected, suggesting some underlying strength in a European economic recovery."

If we continue to see the steady stream of strong economic indicators this week, we anticipate rates will rise slightly higher," added Lantz.

Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgage Marketplace site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.

The rate for a 15-year fixed home loan is currently 2.71 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 2.43 percent.

Source: World Property Channel

To Buy, Sell or Rent Properties in Miami go to http://www.JuanSolerRealtor.com