New Condo Proposals Abound Right Now in South Florida

South Florida condosAn interesting trend has happened recently on the South Florida real estate market. Evidently, condo developers have been enthusiastically proposing new projects lately, proposing an average of almost 1,000 new units monthly for the tri-county coastal region since October 2012.

This is not only a sign that developers are feeling optimistic about the economy but also a sign that there’s about to be some incredible new real estate available in South Florida!

Real Estate for Sale in South Florida

According to the recent article I was reading in The Miami Herald, it has only taken roughly 10 months for developers to propose 20,000 new units in Miami Dade, Broward and Palm Beach counties.

Here’s what else the recent article revealed:

  • Since the fourth quarter of 2012, developers announced nearly 90 new buildings with a combined 9,500 units in South Florida.
  • At least three additional condo high rises with an estimated 1,200 units in the planning stages.
  • All put together, South Florida could ave at least 145 towers and nearly 20,700 units proposed for Miami-Dade, Broward, and Palm Beach counties.
  • The last South Florida condo boom of this magnitude started in 2003 and ultimately resulted in 245 towers and almost 49,000 units in the region.
  • Miami-Dade County has the largest concentration of proposed projects with more than 90 towers and nearly 15,285 units planned.
  • Broward County has 26 towers and less than 2,125 units proposed.
  • Palm Beach County is a third with 23 towers and nearly 2,100 units proposed.
  • Broken down further, the Hollywood and Hallandale Beach market in Southeast Broward County has proposed 11 towers with nearly 1,450 condo units.
  • Sunny Isles Beach on the barrier island in Northeast Miami-Dade County has proposed 10 towers and nearly 1,200 units slated to be developed.
  •  West Palm Beach has proposed seven towers and nearly 1,170 units
  • The city of Miami Beach has proposed with 17 towers and nearly 1,100 units.
  • And Bal Harbour, Surfside, and Bay Harbor Islands market in Northeast Miami-Dade County have proposed 14 condo towers with nearly 1,000 units.

Part of the reason that developers are moving so fast to develop new condos is because the inventory of available condo buildings is dwindling fast.

Experts predict that the current supply of existing condos for sale could be exhausted by the second half of 2014.

Some of the projects that developers are proposing include:

  • A 713-foot-tall tower with at least 60 stories at 600 Biscayne Blvd.
  • A 710-foot-tall tower with at least 60 stories at 700 Biscayne Blvd
  • A 610-foot-tall tower with 55 stories at 24 SW 4th St. on the north bank of the Miami River.

Still, despite all this talk about new South Florida developments, these companies have a large hurdle to overcome first: getting loans from the banks, which have tightened their lending policies in recent years.

That’s why experts believe that it is those developers who can drum up sufficient support from would-be condo buyers that will ultimately find success on the South Florida real estate market.

South Florida Condos for Sale

What do you think of the recent flurry of activity on the South Florida condo market? I would love to hear your thoughts!

In the meantime, if you’re thinking about investing in a South Florida condo, please contact me, Scott Patterson.

I’ll be happy to assist you by letting you know about available condos for sale, answering any questions you may have as well as telling you about nearby condo communities in such communities as:

  • Aventura, Florida
  • Hallandale, Florida
  • Davie, Florida

Until next time,

Scott

 

Celebrities Move Over, There is More Money Coming to Town

In 2013 the amount of real estate that is being sold is truly record breaking in Miami-Dade and Broward Counties. Prices are up in every sector of the market, and most especially in the luxury condominium and luxury home markets. The inventory is so incredibly tight that homes that are priced correctly are receiving multiple offers as soon as they are listed or even before if it is a pocket listing. One thing that observers are remarking on is the continued demand. With nearly 160 new projects in developments and international cash buyers ready to put large cash down payments on pre construction condo developments, there is little doubt that this market is still on fire.

 

Celebrities are even taking advantage of the sellers market. Billy Joel sold his home last week for just under $14 million on La Gorce Island, and this week Rosie O’Donnell sold her Star Island Mansion for just under $13 million. Billy Joel will likely break even on the purchase after brokers fees are paid, however O’Donnell will nearly double the money made on the property, since she bought the property in 1999 for $6.75 million and sold it for $12.65 million. While the home was listed last year for $19.5 million, and was reduced, she was advised correctly to sell. Matt Damon also sold his home on North Bay road at an advantage. At the very least this indicates the market is back to 2006 conditions, if not approaching another level, reaching the top echelon of investor.

 

Celebrities are selling, not to leave Miami per se, but because it would be fiscally irresponsible not to. The property values are sky rocketing, and taxes will likely be raised, especially for non-homesteaded waterfront home owners. So who is buying all this incredibly expensive real estate? The answer is billionaires. Alex Rodriguez sold his home on North Bay Road to a group of the Saudi Royal Family, and Billy Joel sold his home to the largest share holder of Saks Fifth Avenue and the owner of Tod’s Shoes. So not only are the celebrities and big name athletes selling their homes, they are making profits, and making way for a newer and vastly more wealthy crowd. This real estate market is most certainly the market to watch, and if you are looking to take part in it, contact us today.

 

Property Insurance Reform to Affect South Florida Waterfront Real Estate Owners

South Florida insurance ratesThe Business Journal recently had an interesting article about how the state’s reforms to Citizens Property Insurance Corp. will ultimately have a huge effect on those living on South Florida’s coasts.

For those of you who aren’t aware, Citizens Property Insurance Corp is a state-run insurer.

According to the recent legislation that the state government approved, protocol for Citizens Property has changed to help reduce enrollment, which officials say will make it less vulnerable during a storm.

This is sure to have a large impact on waterfront property owners all of South Florida!

What South Florida Home Owners Should Know About the Law Change

Under the recent change, residents will be limited to 10 percent annual premium hikes, although new enrollees would have to pass through a number of other insurers before choosing Citizens.

Experts are saying that because of this change, rates will increase overtime since homeowners would need to select private coverage within 15 percent of that offered by Citizens.

Eventually, more insurance providers will be attracted to the area, experts say.

As soon as the Citizens reform was passed, shares from the Fort Lauderdale-based Unviersity Insurance Holdings increased to its highest level in a year.

Universal Insurance Holdings is the largest private insurer in Florida.

Here’s how else the reform will affect circumstances in Florida: Some experts believe Citizens’ policy limit reductions will cause the maximum coverage to decrease from $2 million to $1 million, eventually falling to $700,000.

Some experts think the changes are coming at a bad time and may curb the housing market recovery in South Florida.

After all, investors may think twice if they’re forced to choose private insurance with higher premiums, experts say.

That could in turn call the housing market recovery to slow down or stop altogether.

What’s more, the reform forbids Citizens from covering new coastal construction after July 1, 2014. This may have a direct impact on such South Florida coastal communities.

Still, some experts say the changes to coastal construction coverage may actually end up benefiting the less expensive condominiums in Brickell and Downtown Miami.

South Florida Luxury Real Estate For Sale

What do you make of the recent legislative changes concerning Citizens Property Insurance Corp?

I am always happy to offer straight-forward advice and providing you with such useful home-selling resources as:

Until next time,

Scott

 

South Florida Real Estate Market Recovery Ranked Best in the Nation

South Florida real estate salesThe South Florida real estate market is experiencing a larger bounce back than most housing markets around the nation.

Evidently, Palm Beach County, Broward County and Miami-Dade County are all seeing major jumps in their median sales price – making them some of the fastest improving markets in the country!

This is obviously great news for luxury South Florida home sellers who are hoping to get a respectable price for their South Florida property!

South Florida Home Sales

Here’s a breakdown of recent South Florida real estate market activity:

  • Broward County’s median price was $127,000, up 21 percent from the year before.
  • During that previous year, the median sales price in Broward County was $105,000.
  • That jump in Broward County was the highest jump of any housing market in the nation!
  • In Miami Dade County, the median sales price was $165,000, up 20 percent from the year before.
  • During that previous year, the median price in Miami-Dade was $138,000.

Although a lot of South Florida homes lost nearly half their value during the housing crisis, experts are now saying that the market is bouncing back from that drop.

Helping the situation is a lot of demand from investors as well as a shrinking supply of available South Florida homes for sale.

Rising rental prices are also driving more home buyers to the market.

List Your South Florida Home on the Market Now

South Florida home sellers who have been hesitant to list their home on the market in recent years can start doing so with confidence.

After all, given the recent data, it appears that home sales prices in the area are on a steady climb.

For help listing your home on the South Florida real estate market, please contact me, Scott Patterson.

I’m an experienced area REALTOR who can help you set the right list price on your home and create an effective marketing plan tailored to you.

For now, be sure to browse some of my online home-selling resources, such as:

Until next time,

Scott

More Canadians Flocking to South Florida to Invest in Real Estate

Canadians investing in South FloridaFor the last several years, the focus on the South Florida real estate market in terms of international investors has been on Brazilians.

Now it appears that there’s another country whose citizens are entering the South Florida real estate market en masse: Canada.

According to a recent article I read, more Canadians are coming to the South Florida real estate market on account of a strong Canadian dollar and a weaker American dollar.

Translation: Canadians are seeing this as a prime opportunity to get a great return on their investment.

South Florida Real Estate for Sale

As Canadian baby boomers are looking for a place to invest their dollar, they’re finding a fantastic welcoming in South Florida.

Given the strong Canadian dollar and the already great deals to be found on the South Florida real estate market, it’s an obvious choice, experts say.

In fact, Canadians have become the No. 1 international visitors to Florida and the largest foreign buyers of second homes in the state of Florida, according to recent data.

Broken down further, 3.3 million Canadians visited the state in 2011, up 7 percent from 2010.

During that time, they spent $4 billion, up nearly 14 percent from the year before.

In Broward and Palm Beach counties alone, snowbirds from Canada and other places spent more than $2 billion last year!

This winter season, their tourist spending should rise about 2 percent.

And that’s just in tourism dollars!

Home investment-wise, Canadians are major players on the South Florida real estate market.

This is great news for the South Florida real estate market because these investments are breathing new life and energy into the market and making it more stable and robust.

Invest in South Florida Real Estate Today!

Contact me, Scott Patterson, to learn about the various available listings in such South Florida real estate markets as:

Until next time,

Scott