Miami-Dade’s real estate market reaches record high prices again (sales, HOA fees)

[MiamiLIFE]

Originally Posted by Corrie22

https://www.youtube.com/watch?v=Vh-P5bs8vpQ

I wonder what was up.....the roads are not crowded any more...plenty of parking everywhere....stores and restaurants practically empty

....all the droves left

Amazing! I am taking my sister to lunch today. Best thing is there will be no wait for a table. Zombie Land here. No one around anymore. All the jobs and people have left the area.

[elchevere]

No signs of cooling down and with multiple offers, often cash buyers:


https://www.nytimes.com/2023/06/26/n...manhattan.html


Mr. Martinez, a tech worker, expected that to cool down Miami real estate. But instead, he is finding himself in stiff competition for one- to two-bedroom apartments near the ocean. He has made seven or eight offers and is willing to put 25 percent down, but he keeps losing, often to people paying cash instead of taking out a pricey mortgage.

“Because of interest rates at 7 percent, I didn’t think it would be this competitive — but that doesn’t matter to cash buyers,’ Mr. Martinez said, noting that he’s competing with foreign bidders and other young people who show up to open houses with their parents in tow, suggesting Mom or Dad may be helping to foot the bill.

Home prices fell nationally in late 2022, but they have begun to rebound in recent months, a resurgence that has come as the market has proved especially strong in Southern cities including Miami, Tampa and Charlotte.

[Corrie22]

Don't know if it's projection....or just wishful thinking

...but these ”experts” keep predicting Miami's failure...on everything

and they keep being wrong!

[elchevere]

Originally Posted by Corrie22

Don't know if it's projection....or just wishful thinking

...but these ”experts” keep predicting Miami's failure...on everything

and they keep being wrong!

I liken it to rooting against and hoping certain sports teams having historic years will fail but end up watching them go all the way to a championship. Hard to stop momentum sometimes. Of course this will not last indefinitely, but enjoying good times while they last.

[Insource Funding]

I concur, and this trend is primarily influenced by local real estate agents. However, it's important to note that even though there might be a limited three-month supply of homes listed on the MLS (Multiple Listing Service), it doesn't necessarily imply that properties are unavailable elsewhere...

A considerable number of individuals prefer to engage in "For Sale By Owner" transactions. However, it's worth noting that such properties are not considered part of the available inventory since they are not listed through a licensed real estate agent

Originally Posted by Corrie22

I love when they say house prices are going up....only a 3 month supply....low inventory....strong buyer demand

...and at the same time say it's the least affordable

to who! LOL.....it's obviously affordable to someone

[roadtrip75]

High housing prices are a bad thing.


This is being driven by inflation and foreign buyers. Both of those causes are artificial. This is a problem created by bad policy.

[gixxer1000]

Originally Posted by roadtrip75

High housing prices are a bad thing.


This is being driven by inflation and foreign buyers. Both of those causes are artificial. This is a problem created by bad policy.

This simply isn't the case. It's not inflation driving the prices up as much as its lack of supply. Miami Dade county has about 1M households and only enough single family homes for about 50% of those households. This is down from about 54% in 2009.

The issue is that we can't add a meaningful new supply of single family homes. We've been stuck at the roughly 500k single family home supply for a couple of decades and we've added considerable households since then.

If you look at the permitting of new homes most of it is renovations of existing older homes. Then you add to that many inner city homes are getting replaced with multifamily buildings. The result is a huge increase in the value of single family homes.

The unafforadbility is going up because every year you need a smaller percentage of households to afford them.

On the rental side as rental rates have gone up so has the development of new buildings. Inflation has been an issue here as constructions cost have risen and has been slowing construction lately. But all the new construction will keep the rental rates from continuing to go higher.

On the singld family side there isn't an new supply to moderate the demand. In the coming decades single family homes will be reservered for the very wealthy. This will be similar to Manhattan where families looking for affordability will need to head out to remote areas. This is no different than a family living in Bloomfield NJ with one of the breadwinners working in Manhattan.

[bentlebee]

Currently the high assessments and the construction to repair many buildings will be a deterrent for many buyers.

At 1090 NW NORTH RIVER Drive on the Miami River the Condo’s have a $ 87,000 assessment. The owners are offered a payment plan for 18 years which will bring the total assessment including interest to $ 147,000.

Who will buy any of these Condo’s in the next years as the future buyer has to sign on the dotted line to take over that assessment loan.

The current owner is looking to ren tat one out and good look to any rente as there is a lot of construction to be done.

This is just one example of many buildings around Florida that will have construction going on or starting soon due to the new requirements.

Buyer and tenant be aware of where to live.

The building I just mentioned is currently on the market for $7800!

You get for free, noise of construction, loud music from boats on the river and walls that aren’t sound proof.

[roadtrip75]

Originally Posted by bentlebee

At 1090 NW NORTH RIVER Drive on the Miami River the Condo’s have a $ 87,000 assessment. The owners are offered a payment plan for 18 years which will bring the total assessment including interest to $ 147,000.

The building I just mentioned is currently on the market for $7800!

No, it isn't. Those condos sell for over $1 million. The $7800 price is monthly rent.

[1insider]

Originally Posted by bentlebee

Currently the high assessments and the construction to repair many buildings will be a deterrent for many buyers.

At 1090 NW NORTH RIVER Drive on the Miami River the Condo’s have a $ 87,000 assessment. The owners are offered a payment plan for 18 years which will bring the total assessment including interest to $ 147,000.

Who will buy any of these Condo’s in the next years as the future buyer has to sign on the dotted line to take over that assessment loan.

The current owner is looking to ren tat one out and good look to any rente as there is a lot of construction to be done.

This is just one example of many buildings around Florida that will have construction going on or starting soon due to the new requirements.

Buyer and tenant be aware of where to live.

The building I just mentioned is currently on the market for $7800!

You get for free, noise of construction, loud music from boats on the river and walls that aren’t sound proof.

Next year in the Florida condo market is going to be very interesting as the milestone inspections and new reserve studies get done and the increases to monthly fees become defined. A lot of buildings who already had to increase fees to cover higher master insurance policies are going to have to increase fees again when the structural reserve study is done. We ain't seen nothing yet.