Colombia Tops Foreign Investment List as Miami Sees Surge of New Interest Amongst Brazilian Buyers

2017 has seen a surge of new interest amongst Brazilian buyers after they pulled back in 2015 and 2016, while also seen continued strength from Colombian buyers. Miami has long been a common home for South American flight capital, as wealthy South Americans seek to move their assets out of their countries due to crime and political instability. Colombia has seen an increase in flight capital and Miami has seen a spike in interest from their wealthy buyers over the past several years as their government formally ratified a peace deal with FARC, a guerrilla activist group,  after it was rejected by voters (On June 27, 2017, FARC officially demilitarized and handed over their weaponry to the UN). Brazilians have seen a volatile economy, crime and political turmoil effect their country. Unfortunately these same political factors, along with a strengthening Brazilian Real against the dollar put a slowdown on Brazilian buyers in Miami over the past 2 years (2015, '16). Now amid further uncertainty, many wealthy Brazilians have once again set their sites on moving their assets to the United States via Miami.

According to the MIAMI Association of REALTORS, Colombia leads all foreign countries in searches for Miami real estate, followed by Venezuela and Brazil. Colombia and Venezuela remained unchanged year over year as Brazil moved up from 5th, passing the United Kingdom and Argentina. According to Mansions Global, Turnberry Ocean Club is reporting that 21% of their international buyers have been Brazilian and One Thousand Museum is reporting that over 20% of their pre-construction buyers are Brazilian. Three Hundred Collins has seen 25% of their current pre-construction sales go under contract to Brazilian buyers and the building is over 80% sold.

“As Miami evolved from a tourist city to a global metropolis, we’ve seen more diversified foreign home buyers search and buy properties here. It’s no longer just South America. It is home buyers in India, China, Turkey, France and other countries who want to live the Miami lifestyle,” said Christopher Zoller, 2017 MIAMI Chairman of the Board. 

Top 10 Countries Visiting Miamire.com in March 2017:

1. Colombia
2. Venezuela
3. Brazil
4. Argentina
5. India
6. Canada
7. Philippines
8. Dominican Republic
9. France
10. Spain

Douglas Elliman Releases Q1 2017 Market Reports, Shows Continued Strong Growth Across South Florida

Douglas Elliman has released their Q1 2017 South Florida Market Reports for Miami Mainland, Miami Beach, Boca Raton, Fort Lauderdale, Palm Beach, Wellington, Delray, and Jupiter/Palm Beach Gardens. The data was compiled in partnership with Miller Samuel, who is a leading independent appraisal firm. Reports reflect price and sales trends along with current market conditions and emerging market trends. The data through Q1 2017 reflects the continued strong growth of South Florida real estate as it continues to be a destination from flight capital from both northern states and International buyers.

MIAMI BEACH/BARRIER ISLANDS HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price slipped 5.8% to $385,000
- Average sales price jumped 10.4% to $999,241
- Number of sales rose 0.6% to 815
- Days on market was 143, up from 97
- Listing discount was 12.1%, up from 8.8%
- Listing inventory increased 6.4% to 6,166

LUXURY CONDO
- Median sales price increased 14.2% to $3,025,000
- Days on market was 207, up from 119
- Listing discount was 13.1%, up from 10.1%
- Listing inventory increased 11.8% to 1,188 units
- Entry threshold began at $1,600,000

LUXURY SINGLE FAMILY
- Median sales price surged 56.5% to $11,425,000
- Days on market was 261, down from 352
- Listing discount was 20.4%, up from 12.8%
- Listing inventory fell 14.5% to 165 units
- Entry threshold began at $6,250,000

5446 North Bay Road, Miami Beach. Listed for $29 Million by Brett Harris of Douglas Elliman.

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MIAMI COASTAL MAINLAND HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
OVERALL MARKET
- Median sales price increased 12.5% to $292,500
- Average sales price rose 0.3% to $405,266
- Number of sales fell 2.7% to 3,487
- Days on market was 81 up from 76
- Listing discount was 5.6%, unchanged
- Listing inventory fell 19.9% to 10,186 units

LUXURY CONDO
- Median sales price fell 27.5% to $785,000
- Days on market was 154 days, up from 110
- Listing discount was 7.8%, down from 8.4%
- Listing inventory slipped 8% to 2,535
- Entry threshold began at $520,000

LUXURY SINGLE FAMILY
- Median sales price declined 12.8% to $1,200,000
- Days on market was 138 days up from 113
- Listing discount was 7.7%, up from 7%
- Listing inventory declined 15.9% to 924 units
- Entry threshold began at $825,000

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FORT LAUDERDALE HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price increased 5.1% to $1,112,500
- Days on market was 48, up from 45
- Listing discount was 6.8%, down from 4.3%
- Listing inventory increased 6.2% to 344
- Entry threshold began at $785,000

LUXURY SINGLE FAMILY
- Median sales price increased 13.3% to $1,950,000
- Days on market was 189, up from 150
- Listing discount was 11.2%, down from 13.6%
- Listing inventory increased 3.8% to 359 units
- Entry threshold began at $1,200,000

5446 North Bay Road, Miami Beach. Listed for $29 Million by Brett Harris of Douglas Elliman.

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BOCA RATON HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO
- Median sales price slipped 3.7% to $780,000
- Days on market was 73 days, up from 101 days
- Listing discount was 7.3%, down from 7.5%
- Listing inventory increased 27.6% to 305
- Entry threshold began at $485,000

LUXURY SINGLE FAMILY
- Median sales price jumped 18.4% to $2,365,000
- Days on market was 162 days, down from 165
- Listing discount was 9.5%, up from 15%
- Listing inventory jumped 39.2% to 565
- Entry threshold began at $1,272,500

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DELRAY BEACH HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price declined 12% to $1,399,000
- Days on market was 100, down from 136
- Listing discount was 7%, down from 13.5%
- Entry threshold began at $1,125,000

LUXURY CONDO
- Median sales price jumped 19.6% to $580,000
- Days on market was 103, up from 78
- Listing discount was 5.1%, down from 5.7%
- Entry threshold began at $400,000

Grand Opening of the Douglas Elliman Delray Beach Office

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WELLINGTON HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY SINGLE FAMILY
- Median sales price declined 33.3% to $1,000,000
- Days on market was 146, down from 160
- Listing discount was 15.5%, up from 12.2%
- Listing inventory increased 13.4% to 271
- Entry threshold began at $625,000

LUXURY CONDO
- Median sales price declined 28.1% to $345,000
- Days on market was 132, up from 99
- Listing discount was 5.5%, down from 6.1%
- Listing inventory declined 22% to 46
- Entry threshold began at $330,000

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PALM BEACH HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
LUXURY CONDO AND SINGLE FAMILY
- Median sales price dropped 29.1% to $7,475,000
- Days on market was 239, up from 74
- Listing discount was 13.2%, up from 14.4%
- Listing inventory surged 38.7% to 86
- Entry threshold began at $5,400,000

Hammock House at 3503 Banyan Circle, Coconut Grove Listed for $5.95 Million with Michael Light and Rafael Montejo of Douglas Elliman.

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JUPITER / PALM BEACH GARDENS HIGHLIGHTS

Key Trend Metrics (compared to same year ago period)
JUPITER SINGLE FAMILY
- Median sales price declined 5.9% to $447,000
- Days on market was 73, up from 74
- Listing discount was 5.1%, up from 6.1%
- Listing inventory increased 4.2% to 499

JUPITER CONDO
- Median sales price increased 17.7% to $282,500
- Days on market was 210, up from 201
- Listing discount was 5%, down from 5.7%
- Listing inventory increased 81.7% to 318

PALM BEACH GARDENS SINGLE FAMILY
- Median sales price increased 16% to $479,000
- Days on market was 91, up from 79
- Listing discount was 6.6%, up from 6.4%

PALM BEACH GARDENS CONDO
- Median sales price increased 4.3% to $220,000
- Days on market was 59, down from 60
- Listing discount was 5%, down from 5.3%

About Douglas Elliman:

Douglas Elliman was established in 1911 and has grown to become the largest regional and the nation's fourth largest real estate company. Douglas Elliman has a current network of more than 6,000 agents in over 80 offices throughout Manhattan, Brooklyn, Queens, Long Island (including the Hamptons and North Fork), Westchester and Putnam Counties, as well as South Florida, California, Connecticut, Colorado and New Jersey. In addition, through a strategic partnership with Knight Frank Residential, Douglas Elliman's powerful network extends to 488 offices in 59 countries. Read our PROFILE Exclusive Interview with Douglas Elliman CEO, Florida Brokerage Jay Parker. 

Hammock House at 3503 Banyan Circle, Coconut Grove Listed for $5.95 Million with Michael Light and Rafael Montejo of Douglas Elliman.

Miami Leads U.S. Cities in Mortgage Denial Rate at 19.4%

Miami has the highest mortgage denial rate amongst U.S. cities according to Case-Shiller with a 19.4% denial rate. Miami is followed by Tampa Bay, New York and Las Vegas at 12.6%, 12.3% and 11.6% respectively. In Miami 15,887 homebuyers sought a mortgage and 3,086 were denied. These numbers do not include deals in which the mortgage was not actually closed, but merely approved. According to Miami Agent Mag the actual rate of approved and funded mortgages is closer to 61.6%, meaning a denial rate around 38.4%. This looks to stand to get worse as inventory levels and prices rise. Parts of Miami are also still effected by the mortgage market collapse of 2007, and many of these properties do not meet standards for mortgage underwriting. Additionally many residents carry too much debt and/or lack collateral to qualify for a mortgage. In the condo market, a shockingly mere 13 of 9,307 condo buildings in Miami-Dade and Broward counties were approved for FHA loans. 

PROFILE Exclusive: Market Update with Demetri Demascus, REALTOR® & 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.

Miami Falls to 10th in Average 1 Bedroom Rental Prices Amongst U.S. Cities

Miami has fallen to tenth amongst U.S. cities when it comes to most expensive one bedroom rental prices according to Zumper. According to their study Miami has an average rent of $1,800, down .6% from last month and down 3.7% from the same time last year. Two bedrooms have remained stable at $2,500 both year over year and month over month. Seattle passed Miami to 9th after seeing major growth and San Francisco ($3,380), New York ($3,000), and Boston ($2,250) remained the top three although rents in those three cities were down across the board.