House Hunters Target Luxury Miami Real EstateMarch 22, 2013
The types of houses in the highest demand current are luxury homes. Some of Miami’s richest neighborhoods are the ones exploding the market. This city was the hotbed for foreclosures and one of the centers of irrational housing choices, but now it’s becoming one of the most popular markets for luxury homes. Many of these homes are nowhere close to average and buyers are looking for anything but average.
One of the most popular property types found in Miami is the oceanfront properties. Many of these found in South Beach and Miami Beach are attracting foreign buyers looking for the lavish and the location. The Lincoln Road and Biscayne Bay areas are exploding with many buyers from Italy, Russia and other countries around the world. Over 75% of the condominium sales in these areas were cash transactions and many were not foreclosures.
Issues in the Luxury Market
The issue happening within the luxury market is a shortage of good deals. With more buyers bring large sums of cash to the closing table, they are looking for special deals, which are becoming harder to find. The demand for luxury properties along the coast of Miami has risen significantly over the past year.
How this Affects the Other Markets
With the luxury market exploding, many new investors are coming to the Miami area in search of deals in other types of neighborhoods, as well. This has caused a large amount of cash transactions as investors scoop up properties throughout the inland and coastal neighborhoods. Middle-class homes have seen an increase in demand, just as luxury homes have.
With the demand rising and foreclosures diminishing, many speculate the market has nowhere to go, but up. The only problem, there are far less homes for sale than a year ago and it’s becoming more difficult for the market to keep up with the demand.