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THE TRUTH ABOUT FLORIDA REAL ESTATE MARKET



MIAMI ART BASEL KICK OFF



Are you ready for Miami Art Basel? The main event of the year opens wednesday but a lot of fairs such as Art Miami, Scope, Design Miami, Untitled start today.

This year, Miami celebrates the 20th annual Art Basel Miami Beach.I decided to give you my entire schedule for this Art Week. Maybe I will meet you at one of these events.

November 29th: Scope opens on the beach at 12pm. Then, I will have a look at the collector preview in Design Miami followed by Untitled. Finally around 5.30pm join me for the opening of Art Miami on the other side of the bridge.

November 30th: I will go to the opening of Art Basel at the convention center at 4pm. Then, I'm going to a preview and cocktail party at the Bass Museum.

December 1st: I will spend my day at the Convention center and celebrate the Ink Miami Pulp Party in 1850 Collins Avenue at 6pm.

December 2nd: I will enjoy a director-led tour of the edition of NADA Miami led by Heather Hubbs followed by an evening at the Bass Museum.

December 3rd: I will discover the exhibition De La Cruz Collection, "Together, at the same time" on 41th street.

December 4th: I will enjoy a delicious coffee at the Margulies Collection.



THE TRUTH ABOUT FLORIDA REAL ESTATE MARKET



During the last decade, Florida has known a housing bloom thanks to its high level of migration and the attractive interest rates. During that period, the volume of sales was high. Nevertheless, lots of expertss predicted that this tendency would stop. We were right. The tendency has reversed. Unfortunately, you don't see lines of people anymore waiting for open houses. The majority of us, expect demand to return this winter but who knows?

The nationwide market is slowing down.

Nevertheless, even if the nationwide market is slowing down, people will continue investing in Florida. Experts have noticed that South Florida is still appealing despite a recession. History proved it. After the Great Recession, South Florida recovered more quickly than the other state. People will continue to move to our beautiful state mainly to reduce their exposure to taxes.

Even if the real estate market in Miami has been affected less than other cities, it is still affected. I noticed that more homes sit on the market longer compared to the last year.

The price of affordable properties is more likely to decrease. Stakeholders are more sensitive to rising interest rates. On the contrary, the luxurious real estate market trend could be different. Buyers are less affected by the hike in interest rates. The actual economic situation is affecting them, but they can still afford to invest. Last year, we recorded $4 billion sales of luxurious properties. In the first half of this year, the luxurious market recorded $1,7 billion in sales of homes.

Another reason why the market is slowing down are the new challenges developers face. It is more and more difficult to launch new real estate projects due to growing construction costs, the lack of labor and rising rates.



WHICH IS THE MOST ATTRACTIVE STATE FOR FOREIGN BUYERS?



For a long time, the United States has been one of the favourite destinations for expatriates.

Florida remains the preferred destination for worldwide homebuyers. People from Latin America, Europe and Canada are especially interested in our beautiful state.

The ranking of the most attractive state for international buyers is:

1/ Florida (24%)

2/ California (11%)

3/ Texas (8%)

4/ Arizona (7%)

5/ New York (4%)

Each state attracts its own customer profiles. Investors buy in Florida to own vacation properties in a warmer state. California and New York attract buyers who look for a property near to international airport and an economic hub. And Texas is one of the five preferred destinations thanks to its affordable properties.

We can notice sales volume generated by foreign homebuyers in 2021 has reached its lowest peak. However, even if the number of sales drops, the dollar volume of worldwide buyer purchases jumped 8.5% over $59 billion in March 2022. Most of these investments are coming from China, Canada, India, Mexico, Brazil and Columbia.



THE EVOLUTION OF DOWNTOWN’S REAL ESTATE MARKET



What I love in my job is understanding real estate’s evolution. In order to achieve it, I have picked a sample of 11 Condominiums in Downtown and analyzed their sales evolution over the last year. The sample was composed of 900 Biscayne, Marina Blue, Paramount Bay, Marquis, Icon Bay, Biscayne Beach, One Miami, Ten Museum Park, Quantum and 1800 Club.

Following my analysis, I have concluded that the average number of units sold for these buildings dropped by 22% in 2022 compared to 2021. Thankfully some condos, such as Icon Bay, 10 Museum Park, and 1800 Club have stood out in increasing the number of sales.

How can we explain this trend? the average Price/Sqft in this building sample has increased. Over the last year, it has risen by almost 25%. Moreover, there is less and less inventory on the market. The lack of diversity in the inventory and increased prices can demote potential buyers.



DEAL OF THE MONTH: THE YACHT CLUB AT PORTOFINO UNIT #1609



Price: $1,030,000

Sqft: 1,080Sqft

2 beds / 2 baths unit

Furnished condo

Sunrise view

Ocean view