CEO of Miami Association of Realtors Addresses Issues Regarding South Florida Real Estate
The Miami International Real Estate Congress began on Sunday, November 4, and will run through Wednesday, November 7, at the Biltmore Hotel located within the city of Coral Gables in Miami. It aims to increase international awareness of Miami real estate by hosting agents worldwide and is considered to be the Miami Association of Realtors’ most significant event of 2012.
Teresa King Kinney, CEO of the Miami Asssociation of Realtors, took the time to address a series of issues regarding the local market in general.
On international interest in Miami real estate…
Kinney says that international property buyers continue to play a pivotal role when it comes to the local market which has essentially helped to fuel the recovery far better than any other area within the United States.
Furthermore, the demand for Miami real estate continues to grow. The Florida share of international activity within the United States dropped over the last year but in the case of Miami, an increase of over 10 percent was noted with almost a third of all international Florida activity taking place within Miami.
On where international property buyers seek real estate within South Florida…
Miami is definitely one of the most attractive locations for international property buyers and investors from all around the world but Latin American buyers remain in the lead with 70 percent of all international activity being made by Latin Americans. Western Europeans come in second with 18 percent. Other nationalities that are seen within the market include North Americans, Eastern Europeans, Asians, Africans, and Australians.
Latin Americans seem to prefer Miami over any other area within Florida by a margin of 65.8 percent making it unparalleled by any other market today.
Venezuelans are also more inclined to consider Miami with 67.4 percent who choose Miami followed by Fort Lauderdale with 16.3 percent for a total of 83.7 percent.
Brazilians, who account for 9 percent of property buyers within Florida, are also one of the top international property buyers with almost 50 percent who choose Miami followed by Fort Lauderdale at 18.6 percent for a total of 68.6 percent.
On potential obstacles that the market could faced in its continue recovery, key challenges, access to mortgage, and the likelihood of another cycle of condominium overbuilding…
One of the biggest obstacles would be the unnecessarily restrictive underwriting standards which prevent many qualified buyers from being able to obtain mortgages. By eliminating such restrictions, the market could experience a substantial boost.
As a culturally diverse global city that offers such as strategic location within the United States alongside its significant role in banking and the corporate world, Miami will surely continue to attract local and international property buyers and investors for many, many years.
The demand for housing with the region is very clear. Even the rental market is strong with its almost 100 percent residential occupancy rates within the Downtown Miami area which has been seeing an increase in its population. Even the dynamics of the market are unlike those from the previous boom as far as the capital which is being used in order to fund new development projects. Many new development projects are being funded by heavier deposits from purchasers. The region’s ability to absorb such high levels of inventory is unlike any other area making any new constructions no big issue.
On whether banks will be able to sell off distressed residential holdings without cause of disruption on the broader market…
Shadow inventory is not expected to create such a significant impact on the market because it will most likely be absorbed as soon as it hits the market since buyers, investors, and the market in general are eagerly looking forward to the additional inventory becoming available.
Also, a study conducted by Florida Realtors indicates that the concern being shown over shadow inventory within the state is seemingly overrated. Distressed sales are down by 12 percent within the Miami-Dade County area compared to levels during the previous year. The demand for distressed properties also remains strong.