The tour bus rolled over in a corner near Brickell Avenue on Saturday morning, while the guide pointed to a point that everyone got up to see: one of dozens of condominium towers under construction.
“I Think preconstruction condominiums as futures contracts,” the group said Peter Zalewski, founder of Condo Vultures and website CraneSpotters.com and preconstruction condos. “In New York traded shares. In Chicago traded on futures. In Miami trades in condos. ”
The condo market Brickell Avenue in Miami has become such an international sensation, expert condos Zalewski released the weekend during Art Basel tour buses for investors, realtors and anyone intrigued enough to spend $ 75 for a quick look. The tours were so popular that they were often duplicated in the mornings and afternoons, and recently added a boat trip along Biscayne Bay.
Far from castigating the last fiasco of overbuilding, developers of Miami seeking a new lap. Encouraged by foreign investors with large amounts of cash, 47 condominium projects are under construction east of I-95 in Miami-Dade, eight in the Brickell area, and many more in previous stages.
The new buildings, many designed by leading international architects, with the latest equipment, large terraces with outdoor kitchens and private pools.
This generation of condominiums have even higher prices during the last boom, sometimes in the range of eight digits. Overall, prices of existing condominiums have risen from their lows widely up to a new higher level of properties for sale.
In the zip code 33131 Brickell Avenue, the median condo price increased in 2013 by 22 percent to $ 415,000, compared to a year earlier, according to an analysis of the Miami Herald and the Center for Investigative Reporting in Florida. The median price of condos is less than 14 percent of its 2007 peak of $ 480,000. It has grown 60 percent from its low of $ 260,000 in 2009.
Despite the notorious crash of condos in Miami, when speculators defaulted contracts preconstruction units amid plummeting prices, Brickell condos were quite solid investments. The median price in the main zip code Brickell gained 44 percent since 2003 and is 14 percent below the peak.
Although their prices are extremely changeable, Brickell condos got more profit than a detached house in the 33146 zip code of the city of Coral Gables stable. In 33146, the housing prices were among the most stable in the South Florida during the crash (down by 36 percent from highest to lowest point) and the median price rose 33 percent since 2003, but still 22 percent below its peak.
As Brickell’s gone running out of space, the wave of condo construction has spread Biscayne Boulevard through Edgewater, which is well advanced in its transformation from impoverished neighborhood to an urban center fashionably luxury highrise that leverage the water views and central location.
In recent months, the resale market Miami condo is showing signs of coming to a stop. After a long short supply, a surge of resale units have flooded the market in recent months, giving buyers more choices and greater freedoms.
Despite the market recovery, traditional mortgage lenders remain wary of condominiums, both in Miami and the rest of Florida. FannieMae has stricter loan guidelines created especially for condominiums in Florida, which require, among other things, accumulated to a higher value than other residential mortgages.
In Florida it easy to get a loan for a second home that a condo that is the primary residence. A conventional mortgage for a condo investment in Miami? Never mind that.
“This is discrimination in federal housing market,” said Grant Stern, president of Morningside Mortgage. “People who establishes regulations for condominiums not understand the Florida market.”
Or maybe yes.
Much of the new condo building is far beyond the reach of most Miamians, even if they could get a mortgage, underlining the growing gap between rich and poor.
The current boom of luxury condominiums has revived the debate on the issue of housing affordability. “This can not be a city of millionaires,” said Mark Sarnoff, Commissioner of the City of Miami and president of the Downtown Development Authority (DDA), in a confrencia held in March in the old post office building at 100 NE 1 Outside Ave, homeless began to settle in for the night in their blankets and flattened cardboard boxes.
PAYMENT IN CASH QUEEN
Almost all demand preconstruction condo comes with plenty of foreign cash, willing to give advance 50 percent or more of the price during construction. Many come from Venezuela, Argentina, Brazil and Russia in search of a safe place to invest your money.
Supporters of deposit funding model buyer claims that it will prevent the kind of speculation that led to the crisis last time, when buyers with small deposits had plans to resell the units as they were ready. Only time will tell.
Almost all units delivered to buyers in the MyBrickell building Related located at 31 SE 6 Street, in the zip code 33131 they were put up for sale shortly after the building was finished in January, according to an analysis by Zalewski.
No need to worry, said Carlos Rosso, president of Related condominium development.
“I do not think that’s worrying at all. We know that buyers are people from Latin America. Some are renting their units, and others are trying to sell, “Rosso said. “The units are renting extremely quickly, and everyone has completed the purchase and came over here. What if we’d like to see more end users? Of course “.