When is Miami real estate getting back in shape?
Last week my team and I went to a conference in Brickell City Centre about the future of Miami real estate. The verdict: Miami will get back in shape within 2 years.
Let's have a look at the past to predict the future. Did you know that if you bought a condo in 1993 for around $250,000, it would be worth $900,000 nowadays. On average the return in Miami has been a 9% per year over the past 25 years.
Now scarcity drives any market, in other words, when the inventory goes down, the prices increase. So by studying the existing inventory in Miami and the rate at which it sells we will confirm that in 2020 the prices will go back up.
Let's first look at the supply of the preconstruction market. You have to know that it takes more or less 4 years between the beginnings of the sales of a building to its delivery. To give you an idea 24 buildings were delivered in 2014, 18 were delivered in 2015, 14 in 2016 and 10 in 2017. Eighty three percent of these buildings are sold out. Only 3 buildings are supposed to be delivered in 2019 and 3 in 2020. This will create a scarcity of new construction which will create an increase in price.
On the other hand the resales market is also absorbing quietly its inventory. In 2017 81% of the total new listings were sold. If you look at the total condos available only 1.47% are up for sale.
To conclude, you have 2 years to buy your deal or you'll have to wait for the next cycle !
OSTERIA BAIOCCO - FOR THE LOVE OF ITALIAN FOOD
I am half-Italian and I love it when I can find good genuine italian food that reminds me of home. This restaurant just opened earlier this year and it is a fantastic Italian restaurant in the MiMo neighborhood (nex to Soyka).
Here are my recommendations: Start off your night with La Panzanella "Maremmana" and you will blown away by the delicate taste. The Paccheri Con Ragu di Agnello e Cacio is simply divine as well ! The pasta is cooked perfectly "Al Dente". For desserts, try the simple Tiramisu which is incredible to the taste bud ! I love to bring my friends here where we know that we will have a good time in a beautiful scenery.
CONDO-HOTEL PROJECTS: SMART BRICKELL
In the last newsletter, we introduced to you The Yotelpad. If you are interested in the idea of investing in condo-hotel, take a look on this project as well: Smart Brickell. Smart Brickell encompasses three different philosophies: smart use, smart design, and smart tech. The building is being built with the promise of using only the best technologies for its owners and guests.
Since it is a condo-hotel project, owners are able to have a lease back program where they can rent their property through the building's hotel services or have their own independence of renting the unit. The units on this project begins at $318,000 to $400,000. The project is due for completion on 2020. Click on our website link here to know more about this project
DID YOU KNOW ? A FEW INTERESTING FACTS
Florida is the second fastest growing state in the U.S after Texas.
Florida's population increased last year by 900 people/day
According to Forbes, 8 of the top 15 fastest-growing cities by population, wages and employment are in Florida.
Miami average occupancy rate for condo rentals is at 96.65%
The current condo rentals vacancy rate is reported extremely low at 2.2%
TOP 5 EVENTS IN JUNE
Miami has exciting events happening this month. Here are some events that you should be on the look out!
Miami Film Month: June 1 - 30
Throughout the whole month, you can watch movies for only $8 and some of them are free! Check out the participating local art house cinema to see if promotion applies
City Theatre's Summer Shorts: June 1 - 30
Come and watch a 10 minute short play in this annual festival. Ticket starts at $39/person and the event is happening in Brickell
Carnaval Miami Fishing Tournament: June 16
Time to brush up your fishing skills and participate in the fishing competition happening in Key Biscayne. May the best angler wins!
Motorcycle Road Racing Championship: June 2 -3
The Homestead Miami Speedway is hosting the Champion Cup series. You can watch the motorcycle racing on this weekend with your family
Redland Summer Fruit Festival: June 23 - 24
It's the tropical fruit season, come to this fun event in Homestead and sample rare fruits and tasty cuisine !
DEAL OF THE MONTH: 10601 NE 6TH AVE
Listed at $1,150,000
4 Bedrooms / 2.5 Baths
Home on the golf course
Miami Shores neighborhood
Click here for more info