Miami Florida real estate continues to be in very high demand. Miami home buyers are reserving new condos as fast as developers announce new projects. Miami real estate investors are buying small shopping centers, warehouses, apartment buildings and condo hotel units. Mortgage lenders have plenty of money available to finance transactions at interest rates that remain near historic lows.
Celebrities have chosen secluded portions of Miami real estate to be there homes. Among those snapping up Miami real estate are Madonna, Sly Stallone, Jennifer Lopez, Will Smith and more.
The rich and famous are particularly drawn to South Florida and Miami real estate because of the exclusive locations such as Star Island, Palm Island and Fisher Island. Locals are more than happy to take advantage of the situation, and regularly take vacationers on tours of these locations so they can get a glimpse of celebrity-owned Miami property.
The Miami real estate boom is being fueled by an influx of foreign buyers, and by business executives relocating to the South Florida for work.
According to the South Florida Sun Sentinel, analysts’ fears about a housing bust are belied by the continued surge in demand for Miami real estate and real estate in other parts of South Florida. In spite of rising prices, Miami real estate saw a 4% increase in sales across Miami Dade County over the past year.
In response to Alan Greenspan’s comments about “froth” in the housing market, Merrill Lynch released a report indicating that Miami real estate was the hottest of them all. Miami real estate is some of the least affordable in the nation, when compares with local median incomes. However, the influx of foreigners and relocated businessmen means that lots of the newcomers to the area do not rely on local incomes, which is helping to increase the median home prices still further.
So what could bring the good times for Miami Real Estate to an end? The steady rise in long term interest rates is one potential problem. This would make new homes and commercial properties more expensive to buy. Misjudgments by inexperienced developers could make new buildings tough to fill. A new terrorist attack could reduce the flow of international buyers.
