Real Estate NewsLetters Archive

SURGE IN THE HOUSES PRECONSTRUCTION SALES

Nowadays we are experiencing a seller's market with an increasing demand for houses and particularly for new constructions. We have reached the highest point of sold houses under construction since 2005 with a rise of 38.5% (almost 1 million homes) of new construction sold in October 2020.

The low mortgage rates and the increasing desire for houses have created a shortage of inventory which has pushed prices up. The housing market is over the roof, and even more when we look at new constructions. From the houses sold in April 2020, 20% were for preconstruction houses which shows a strong market that will alleviate the low inventory.

This pattern is also positive for the economy as it shows stability which pushes job creation for the construction industry, as well as the home goods industry, as people need to start buying furniture, appliances, and much more when moving to their new houses.

Even if the pandemic has created a lot of uncertainty, house prices are expected to remain high, as homebuilders are facing high-cost materials and labor and limited available land, which won't allow an extreme growth of the supply in the short and medium-term. To reduce the risk, builders are now waiting to receive executed offers before starting building.

New developments of single-family homes are up 73.6% from April to October 2020, compared to 37.6% for multi-family homes. Developers are focusing on what is selling now, which certainly are houses.



PANDEMIC RELOCATES WALL STREET TO MIAMI

Wealth is coming south and relocating to Miami. Financial and tech institutions are taking advantage of the many assets Miami has to offer by relocating here.

Miami is an incredible spot for financial firms for several reasons including low corporate taxes, no income taxes, flight connections, good life quality, an international and urban environment, not to mention the perfect weather and lively lifestyle.

Firms like Goldman Sachs, Blackstone Group, Icahn Enterprises, and Starwood Capital Group, have announced their plans to open offices in Miami which will have a beneficial effect on the economy due to the rose of job creation.

It is not news that Miami has been trying to transform into a financial and tech hub for the past years. These past years, all the efforts start to deliver benefits and have bounced this past 2020. As per a 2019 report, the full-time employees working for investment advisers companies located in Downtown Miami increased by 55% since 2014.

Even though the Miami leasing activity for office spaces had a rough time after the pandemic hit the U.S., the relocation of these enterprises is now helping neutralize the effect.



MIAMI IS NOW THE HOT SPOT FOR CELEBRITIES

As we have mentioned several times in our previous newsletters, Miami's real estate market is booming, as more and more people are relocating from other big cities every day due to the pandemic.

However, this trend has extended to celebrities and top financial executives. Starting with Ivanka Trump and her husband Jared Kushner who just closed a $30 million lot at the exclusive Indian Creek Island.

Another big name coming to Miami is the top model Gisele Bundchen and her husband Tom Brady who are planning to join Ivanka and Jared at Indian Creek Island. They have reported a property purchase of over $17 million.

Miami has a large inventory of ultra-luxury properties of $20 to $40+ million, which makes it a perfect spot for celebrities and high-income earners looking to scape lockdowns in other U.S. cities, especially those coming from the Northeast.



PALAT RESTAURANT

Palat Restaurant located in Upper Buena Vista neighborhood is a must if you are a lover of Italian food, just like me.

Homemade pasta, fresh seafood, modern decor, outdoor patio, outstanding service, and a great selection of music are a few reasons that make me go back every time! This is a definite hidden gem, with strict covid measurements.

My definite recommendation is the Frittura Panza as an appetizer which is a platter of fresh shrimp, octopus, and calamari, and then for the main, you need to try the spaghetti alle vongole or the tagliolini caccio e peppe (be ready to share this one). Last time I went, I didn't try the dessert section, but my friend ordered a Tiramisu and I couldn't hold myself to try it, and it was definitely worth it!

DEAL OF THE MONTH: YACHT CLUB AT PORTOFINO #3110

Price: $850,000

2 beds / 2 baths

Breathtaking Bayviews

1,090 sqft

9 feet ceiling

$779/sqft

Maintenance fees: $1,046/ month