Miami Beach Real Estate Blog

A spectacular winter afternoon in Miami Beach!

Statistical Source: The Miami Herald 6/19/08

Everyone is well aware of Miami’s downtown building oversupply, but just how bad is it? In the last six years, 22,737 units were built or are now under construction in Miami’s urban core — more than double the number built in the nearly 40 previous years, it’s a large figure, but still less than many predicted. Perhaps no section of Florida has seen more building in recent years than downtown Miami’s urban core.

However, with the housing market turning in 2006, the credit crunch of 2007, and inexperienced developers having to cope with rising construction costs & mismanagement, many proposed projects never went beyond the planning stages. With few new projects starting in the past two years, the real scope and size of Miami’s downtown condo craze is starting to come into focus. Although the downtown market still has a vast surplus of condos- it is not 50,000 or 80,000 new units, it’s estimated that 22,000 new units. The bad news is that it is still 22,000 new units.

I recently came across an interview with Jim Cramer (from Mad Money on CNBC), which I believe accurately predicts future real estate trends for the Southeast Florida housing market. For anyone considering buying Miami Beach, South Beach, or even downtown Miami waterfront properties, NOW is the time to be making offers on well priced properties.

Cramer’s Key Points:

• Inventory is drying up & being steadily being absorbed
• Housing starts have been down for over two years
• New construction projects stopped two years ago
• Florida is generally one year ahead of market trends
• Interest Rate cuts have had a positive effect in absorbing excess inventory (at much reduced prices)

Watch Jim Cramer’s Interview Below:

Downtown Miami may soon be experiencing another remodeling job that will give way to some notable new places to check out per fairly recent news reports. What’s more, commissioners are looking to rid themselves of existing construction debts that just may spur the creation of the Florida Marlins stadium that has been gestating idly for years.

Opinion will surely be divided but these new developments may be the catalyst that will once again inspire further additions in real estate hotspots like infamous Brickell Avenue and beyond. The Performing Arts Center has been one of the few exceptions to the otherwise sluggish city expansion which has done a lot to attract tourism dollars and overall revenue.

It remains quite famous for its celebrated design district but the soaring downtown skyscrapers and densely populated streets can definitely improve on the natural aesthetic. Currently in the works among the aforementioned city developments is a lush museum park. Market complications aside, discerning buyers oftentimes demand to be surrounded by lush, serene settings and such a creation may in turn spur more people to explore downtown Miami real estate.

Getting back to the Marlins Stadium, should the purported project finally get the green light, those previously mentioned tourism dollars may start to flow in. There’s an even likelier chance some of those tourists vacationing in Miami or staying at a nearby South Beach condo hotel will turn around and make a down payment on a vacation or permanent luxury home.

The last component in the proposed development is a community of affordable houses. Everyone knows the condos and residences in downtown Miami cater largely, albeit not completely to people with high incomes. This project could entice buyers who have long wanted to live near the bustling downtown area but did not have the necessary funds to afford a place there. These future developments and the small positive turn the housing market is supposed to take this year may end up doing wonders for the area.

Las Vegas: a cornucopia of excitement, casinos and activities that have inspired the catchphrase â¬SWhat happens in Vegas stays in Vegas⬝. With a thriving real estate market, a luminous ambiance, and an effervescent atmosphere, tourists continue to flock to the city to experience Vegas⬔ inimitable charm.

For whatever reason, a trend among travelers is emerging where vacationers are choosing to forego the traditional hotel stay and are instead choosing to complement their indulgences by investing in a permanent or vacation home. It⬔s pretty safe to assume that the allure of â¬Ssin city⬝ plays an important, if minor role.

If Las Vegas is so great, it kind of comes as a notable surprise that a publication like Maxim has placed Vegas at fifth and has instead given the honor to Miami. Then again, it⬔s Miami and well, who doesn⬔t know about Miami? In fact, one could argue that Maxim is simply basing their opinions on the fact that the city has great beaches and yes, this is indeed true. But considering the lofty name they were up against, there has got to be more to its appeal than that, no?

Putting aside the criteria Maxim used to reach their conclusion, there do exist other factors in Miami⬔s appeal and why it could usurp Vegas⬔ position, its own real estate market notwithstanding. For one, Miami has a significantly broad appeal. Young adults venture off to the 24 hour celebrations on Ocean Drive and the downtown Miami area while retirees and baby boomers seem to have a certain affinity for the beaches located near ethnic restaurants and cafes. The profusion and variety of things to see and do caters to an extensive range of age groups.

So Miami has been deemed the top party city by a magazine, that⬔s great but that⬔s not what makes this distinction noteworthy. What is worth noting is the possible implications this could have in acting as another reason to visit and possibly invest in a condo or home in Miami and its neighboring cities. Though it may be suffering from a less than desirable housing market, it could theoretically act as that last deciding factor that inspires a young home seeker to buy a â¬Spad⬝ in Miami Beach and elsewhere.

Las Vegas certainly isn⬔t going anywhere and this list won⬔t make any earth shattering changes in lessening the city⬔s appeal or its tourism industry. It does nevertheless give one something to chew on in terms of the dynamics of how such things can affect a city⬔s real estate appeal, however slight it may be.