PROFILE Exclusive: Market Update with Demetri Demascus, REALTORĀ® & Founder of The Demascus Group X SRG
PROFILEmiami had the exclusive opportunity to sit down with Demetri Demascus, a top-producing REALTOR at Spectrum Realty Group as well as an investor and developer in the Miami market, to get his opinion on the fast movement that the Miami real estate market has seen over the last year as well as how to how to navigate uncertain market conditions.
PM: What have you seen over the last year in the Miami real estate market?
DD: The market has been grinding to a halt. Anyone who says it isn't just really is not looking at the data. Yes there are still new projects selling, but even developers topping off their buildings are feeling the pressure from buyers still needing to close on the final 50% or so of their purchase. There are less buyers pulling the trigger; thus, less offers which is starting to pull prices down.
PM: What factors are influencing this?
DD: The world is very different than it was five years ago and many of the economic and political shifts have effected Miami's real estate market. Miami is a haven for a lot of flight capital, meaning as soon a foreign family has money, they are coming to the United States. Safety is their main priority as people escaping foreign countries are looking for safer, more stable investments. They are afraid of keeping their money in unstable economies or in countries with corrupt, unstable governments and politics.
The weakened purchasing power of foreign economies has also directly negatively affected the residential real estate market in Miami-Dade as well as the stronger U.S. dollar, which is making local markets unaffordable. Some investors are also adversely effecting real estate values as they profit off of currency fluctuation and lock in what appear to be losses in real estate for gains in currency.
PM: How do you recommend people navigate the uncertainty?
DD: With crisis comes opportunity. Yes lots of people are worried and upset about the values of their properties, which means they may be feeling the squeeze to sell. What most real estate shoppers do not realize, is that a "buyers market" is actually a bad market. You want to buy when real estate is at its lowest and sell when it is at its highest. Why not take advantage of the low pricing and some of the opportunities that are out there. People who are scared of the "market crash" or who have been effected by unstable foreign markets will sometimes sell their home quick and below market value, giving you the opportunity to cash in on deals that would not otherwise be available. Buy some properties while their value is weak so that you can profit when their value is high.
PM: Are there any neighborhoods that are exciting to work-in as the rest of the market seems to pull back?
DD: Yes, there is always excitement no matter how the economy is. Right now there is a lot going on in Park West and Coconut Grove. Park West is a fairly new neighborhood which is second after Fisher Island when it comes to average monthly rent. It is the area where Museum Park is and includes Marquis Residences, Ten Museum, 900 Biscayne and Marina Blue. This is a young, vibrant group of buildings and residents as well as will only improve as One Thousand Museum and Paramount World Center race towards completion.
Also Coconut Grove is night-to-day. This area has always had pockets of luxury, but the neighborhood got lost in time as Brickell and Miami Beach have cannibalized a lot of the market over the past twenty years. Slowly parts that have ben known as "the hood" have seen many sales close to $1 million and new construction has completely transformed the neighborhood. New restaurants, stores and high-end luxury-condo buildings have . This is surely an area that will continue to grow as it truly is one of the most lush, beautiful, neighborly communities in South Florida.
PM: Do you think South Florida and Miami real estate will continue to grow?
DD: When people look at the market right now they see two major driving factors. One is the weather and landscape. Miami is beautiful because you have the sun, sand, beach, bay, etc. There will always be a desire to live in a major city that offers such an outdoor lifestyle. The second is the attractive cost of prime real estate. No where else in the world right now can you buy such prime real estate for such discounted prices, at times near $400 SF. That is attractive to any investor no matter who you are.
Read our 2017 Market Outlook with Demetri Demascus from July 2016.
Office location: 4141 NE 2nd Ave, STE 106-B Miami FL 33137
About Demetri Demascus & The Demascus Group X SRG:
The Demascus Group X SRG was founded in 2016 to provide our clients with modern, full-service real estate experience. The Demascus Group X SRG provides each client an individualized program tailored to their needs matched with with unprecedented support. Our services range includes sales and brokerage services, investments, property management and portfolio management. We cultivate and maintain strong partnerships with the top real estate attorneys, title companies, contractors, architects, banks and mortgage brokers and give our clients full access to our network to help them succeed. Demetri Demascus has over 8 years of experience in real estate across various markets as a residential and commercial broker, real-estate developer, manager and investor. He has set record prices in Miami working with his clients. Demetri Demascus is a member of the Miami Association of REALTORS and has knowledge in the South Florida Real-Estate Market. He is also the managing partner of Trilogy Partners, a real estate investment firm. Visit Demetri & The Demascus Group X SRG at www.demetridemascusmiami.com.