International Investors Fuel Miami Condo Boom
25 July 2011
Whereas in the past many of the Miami condos were bought by US consumers, using 90% for 100% mortgages, most of today's buyers are foreign and are purchasing with cash. The total worth of sales of residential property in the US to foreign buyers for the year ending March 2011 was $82 billion, up from the $66 billion the previous year. Sales to international buyers were split evenly between those who had recently immigrated and non-resident foreigners and Miami is one of the most popular markets.
This is because Miami is finding favour with those from emerging economies in Latin America, such as Colombia and Brazil, and combined with a weak US dollar, this is making property purchases irresistible. The result is that Miami is now the top international property market in the US, and there has been a 54% increase year-on-year in condo sales to June 2011, with the majority being sold to international buyers.
Condominium sales are increasing throughout the whole of Florida, and are up by 8%, while sales of single family homes have fallen by 4%. Recent figures show that the effects of foreclosures and short sales on the property prices of condominiums and single family homes are lessening, with 57% of all closed residential sales in Miami Dade County being classed as distressed in June, compared to 60% a year earlier.
The total housing inventory is also declining from 25,190 in June 2010 to 16,252 in June 2011. The average price of a single family home in Miami Dade County dropped just 2% from $342,051 in June 2010, to $335,289 last month. The average price for condominiums in Miami Dade County increased by an incredible 35.2% from $253,303 in June 2010 to $342,256 last month.