The Miami real estate market continued its historic summer by registering its second-highest single-family home sales month in history in July, according to a new report by the 38,000-member MIAMI Association of REALTORS® (MIAMI) and Multiple Listing Service (MLS) system. Miami-Dade County had 1,354 single-family home sales in July 2015, nearly eclipsing its record of 1,390 transactions established last month.
Miami single-family home transactions surged 10.2 percent year-over-year in July 2015, from 1,229 to 1,354. Existing condominium sales increased 4.8 percent, from 1,403 to 1,471, which is noteworthy considering the continued rise of Miami pre-construction condo sales.
When diving into Miami real estate, take time to properly access the market before you go out and make a real estate purchase. It is best to compile information on at least 50 properties from your target area and put this into a spreadsheet. Compare things like the costs of repairs, desirability of location and potential return on your investment. This will help you weed out the bad from the good. Here on Miami Just Listed we help you by providing you with a simple to use property organizer.
A global city with the second-largest financial hub in the country, Miami continues to draw increased demand from international and domestic home buyers. South Florida’s improving job market and historic low mortgage rates are encouraging more end-users to buy property here.
Learn as much as you can about real estate before putting any money into the market. This is something you must do and must do well and Miami Just Listed provides with all the tools to assist you in the process.
The interest rate for a 30-year fixed-rate mortgage averaged 4.05 percent in July 2015, down from the 4.13 percent average recorded during the same month a year earlier, according to Freddie Mac.
Location is an important part of real estate investing. Property condition and other factors are usually subject to change. Properties in areas that are depreciating are generally bad investments. When buying real estate, make sure you check out the property value and area.
Miami Residential Real Estate Sales Rise
If you’re going to try getting into real estate, you need to consider how much time you’re able to spend on property management. There are always going to be things that come up with tenants that can eat away at your valuable time. If you can’t handle it, you may wish to get a company that manages property to do it.
Total existing Miami-Dade County residential sales, including single-family and condo markets, rose 7.3 percent to 2,825 last month compared to 2,632 a year ago.
Listen more than talking when negotiating. By dominating the negotiations with your own talking, you might miss out on a great opportunity. If you listen closely, you are more likely to get a good deal.
Median Prices Register Growth
You want to try and think about what properties are going to see a value increase when you are making investment decisions. Purchasing a home near a body of water, for example, is generally a good idea. Consider the long-term costs and think about the possibilities.
Single-family home prices, which again increased in July, remain at 2004 levels despite four years of consistent year-over-year increases. Condo prices also increased in July 2015, marking 49 months of growth in the last 50 months. The median sales price for single-family homes rose 8.6 percent, up to $278,000 in July 2015 from $255,950 in July 2014. The median sales price for condominiums increased 2.6 percent in July to $195,000 from $190,000 a year ago.
The rent you collect should cover just about all of the mortgage you pay. This is a great way for you to break even. There is nothing worse than needing to cover the mortgage yourself because the renter’s payment cannot cover it.
Despite the increase in median prices, Miami’s residential properties remain more affordable than other world-class global cities, according to the National Association of Realtors 2015 Profile of Home Buying Activity of International Clients. NAR analyzed the cost of a 120-square meter condo in a number of foreign cities based on prices reported in the Global Property Guide and compared the prices against the median price of a condo in several major U.S. cities. A 120-square meter condo in Miami-Fort Lauderdale-Miami Beach cost $149,900 on average, according to NAR. The price for the same condo in London ($960,840), Hong Kong ($776,280), and New York ($1.6 million) were at least five times higher.
If you buy a rental property, it is vital that you wisely choose your tenants. The prospective tenant needs to be able to afford both rent for the first month as well as a deposit. If they can’t get the cash, they may not be able to pay the rent. So, the best idea is to rent to someone else.
Miami Real Estate Continues Selling Close to List Price
When figuring out a home’s value, consider how easy it would be to rent it out. This increases your overall yearly profit margins. Later, you can resell the property for a larger profit.
Miami single-family homes and condominiums continue to sell close to asking price, reflecting strong consumer demand. The median number of days on the market for Miami single-family homes decreased 4.7 percent to 41 days in July 2015 from 43 days in July 2014. The average percent of original list price received was 95.6 percent, an increase of 0.4 percent from a year earlier.
Don’t get real estate located in bad neighborhoods. Make sure you pay attention to the location of the property you are buying. Make sure you have done your homework. A good deal on a house that’s nice may be because the area it’s in is bad. It may be hard to sell and it may be easily vandalized.
The median number of days on the market for condominiums sold in July 2015 was 59 days, the same number recorded in July 2014. The average percent of original list price received was 93.8 percent, a 0.3 percent year-over-year increase.
Understand the neighborhood prior to making any purchasing decisions. Location is essential to your investment and more important to whether it has special attributes or zoning laws you need to know about. Speak with neighbors to get a sense of whether this property is good for rental purposes and can quickly be rented out.
National and State statistics
Enlist the experts for assistance. Before you make a bid on any property, be sure you seek advice from someone that’s a pro when it comes to real estate. Talk to a real estate agent or a real estate appraiser, for example. These experts will assist in your decision making.
Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops increased 2 percent to a seasonally adjusted annual rate of 5.59 million in July from a downwardly revised 5.48 million in June, according to the National Association of Realtors (NAR). Sales have now increased year-over-year for ten consecutive months and are 10.3 percent above a year ago (5.07 million).
Look for rising property values in your desired area. Consider the number of vacancies for the rentals in the area. Depending on your plans for the property, you should address these two questions. You want to buy on the low end when flipping, and you don’t want to affect your rental profits negatively by setting your expectations high only to find out you can’t get enough renters.
Statewide, closed sales of existing single-family homes statewide totaled 26,916 last month, up 21.8 percent over July 2014, according to Florida Realtors. Florida’s condominium sales jumped to a total of 10,235 transactions, up 13.9 percent compared to July 2014.
If you are looking into rental property, learn about the going rate for rent in the area you are looking at. If you want to rent out a property quickly, you’ll need to make sure that the rent is in line with similar rentals in your neighborhood. Potential tenants will be less interested in your property, making you need to wait longer to start earning money.
The national median existing-home price for all housing types in July was $234,000, which is 5.6 percent above July 2014. July’s price increase marks the 41st consecutive month of year-over-year gains.
Sacrifices may need to be made. A lot of time goes into real estate investments. You may need to give up some free time to be successful in real estate investing. Once your goals are met you can look into these things.
The statewide median sales price for single-family existing homes last month was $199,900, up 8.1 percent from the previous year, according to Florida Realtors. The statewide median price for townhouse-condo properties in July was $150,000, up 9.1 percent over the year-ago figure
If you have time to hold properties for some time before you resell them, target purchasing homes in areas with lots of foreclosures. Eventually, their values will rise again, and if you buy low, you turn a tidy profit. Remember that it may take some time before it is possible to sell and recoup your outlays.
Miami’s Cash Buyers Represent More than Twice the National Average
You don’t want to use up too much time when considering any certain real estate investment. Any deal that eats up your schedule is not actually going to be a deal in the end. Instead, start looking around for other deals.
Cash deals represented 48.2 percent of Miami’s total closed sales in July 2015. That is more than double the national average as just 23 percent of all U.S. housing sales were made in cash in July, according to NAR. Cash transactions represented 54.4 percent of total Miami deals in July 2014. Miami’s high percentage of cash sales continues to reflect South Florida’s historic ability to attract international home buyers, who tend to purchase properties in all cash.
Always try to keep extra money allocated for paying the mortgage on the property in case it becomes vacant. Keeping money back for this type of thing will help you be at ease because you’ll have the mortgage covered while waiting for new renters.
Condominiums comprise a large portion of Miami’s cash purchases as 62.1 percent of condo closings were made in cash in July compared to 33.1 percent of single-family home sales.
Research the neighborhood for vacancies before you buy it. If you look around and see lots of empty rental properties in the area, chances are good yours will stand empty too.
Distressed Property Transactions Decline in Miami
Learn how to talk like a real estate expert. You should always sound like you are a professional. You may be taken advantage of if the seller senses that you’re new. It is important that you use the lingo to your advantage. If you sound and seem professional, you will be able to negotiate better.
Distressed property transactions again declined in Miami. Only 26.1 percent of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 31.5 percent in July 2014.
Your real estate investment education is going to cost you sooner or later. It will take time, but will be extremely beneficial for your career. It might be in terms of consequences from future mistakes. Figure out all you can from the sources that are out there to do your best.
Short sales and REOs accounted for 5.1 percent and 21.0 percent, respectively, of total Miami sales in June. Short sale transactions decreased 31.8 percent year-over-year while REOs decreased 4.1 percent. Nationally, distressed sales were 7 percent of sales in July, down from 9 percent a year ago.
A property manager can save you time. Even though you will need to pay a fee to the property management firm, the time you save from dealing with those trivial problems from the tenants would be worth it.
Active Condo Listings on the Rise
To have success in real estate investing, become a negotiating expert. You can save big bucks if you do it right. Read books, take a class and do what you need to to barter well.
Seller confidence continues to result in more properties being listed in Miami. Active listings at the end of July increased 3.8 percent year-over-year, from 17,167 to 17,820. Active listings remain about 60 percent below 2008 levels when sales bottomed. Inventory of single-family homes decreased 4.7 percent from 6,181 active listings last year to 5,890 last month. Condominium inventory increased 8.6 percent to 11,930 from 10,986 listings during the same period in 2014.
Don’t try renovating properties because the latest trends are to do so. Different people like different styles and features in a house. You are smarter to stick with standard features, classic style and neutral colors. Remember that not everyone shares your taste.
At the current sales pace, there is a 5-month supply of Miami single-family homes, a decrease of 11 percent from 5.6 months in July 2014. There is an 8.8-month supply of condominium inventory, up from 7.8 months in July 2014, an increase of 12.1 percent. A balanced market between buyers and sellers offers between six and nine months supply of inventory.
If you are fixing up a property, keep your style and trends to yourself and away from the property. People prefer homes that offer neutral colors so they can make it their own. Keeping things classic and simple allows them to visualize they way it will look when they live there and can decorate it as they wish.
New listings of Miami single-family homes increased 1.8 percent from 2,076 in July of last year to 2,114 last month. New listings of condominiums decreased 0.3 percent to 2,729 last month, compared to 2,738 during the same time period in 2014.
Nationally, total housing inventory at the end of July declined 0.4 percent to 2.24 million existing homes available for sale, and is now 4.7 percent lower than a year ago (2.35 million). Unsold inventory is at a 4.8-month supply at the current sales pace, down from 4.9 months in June.
Below you can search hot Miami Beach investment property deals for under $1 million. For more information call (305) 788-9393.
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Miami data last updated at July 24, 2017 6:09 PM ET