Sydney Server Real Estate Blog

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More Inventory Please. S. FL Residential Market Warming Up!

Friday, June 8th, 2012
The residential resale inventory has dropped by nearly 63% as of March 2012, according to the Southeast Florida MLXchange service. A key reason for the decrease in the available inventory is the waves of discount buyers who are scooping up residential properties in South Florida, that have fallen an estimated 45% from the peak in 2006.

Leading the surge has been foriegn cash investors, who have chipped away at South Florida’s oversupply of new condo inventory from the boom in the region’s seven largest coastal markets of Greater Downtown Miami, South Beach, Sunny Isles Beach, Hollywood/Hallandale Beach, Fort Lauderdale downtown & beach areas, Boca Raton, Palm Beach and downtown West Palm Beach.
The reduction of inventory vs the demand is becoming a heated issue in the South Florida residential market, possibly changing the buy/sell climate but staying true to the region…VERY HOT!

Miami Housing Inventory History

Housing inventory in Miami, which is typically highest in the spring/summer and lowest in the fall/winter, peaked at 79,251 in November 2007. The lowest housing inventory level seen was 26,923 in June 2012.

Lenders Financing Residential Condo Construction For S. FLa

Wednesday, June 6th, 2012
Developers move forward with planning of at least 26 new condo towers in South Florida, signs are emerging that lenders are growing eager to finance residential-oriented projects, including condo towers that were blacklisted a few years ago.

Lenders have provided at least $775 million in financing for at least 17 projects in Miami-Dade County since November 2011. Financing a variety of residential purposes from condo construction to condo developer refinancing, condo bulk purchases to land loans for local, national, and international entities.
First quarter of 2012 indicate that South Florida is moving toward the next phase of the real estate cycle.

The Miami Herald recently reported that Swire Properties, real estate conglomerate with a major presence on Miami’s Brickell Key, closed a $140 million line of credit to fund the initial development of Brickell CitiCentre — the project is slated to include two residential towers. Other development entities were funded in Aventura and Miami Beach, according to Miami-Dade County records.

Source: Miami Herald