Miami is a melting pot: a mixture of cultures, people, races and ethnicities that culminate into a feast for the eyes and a unique flavor all its own. Despite the string of malevolent hurricanes that have plagued the coast the real estate market in Miami-Dade County is still teaming with activity. Dade County saw more than 10.9 million visitors wander through its boundaries last year: Miami, South Beach and other popular venues there in, a 4.8 percent gain from 2003.
The hurricane season had a lingering effect on the state of tourism but didn't hamper its progress. The three percent increase in tourism last year saw another 76.8 million people travel to the sunshine state. They came to visit, relax, spend money and in some cases make preparation for a permanent move.
Miami's Real estate market is still proving to be a hot bed of activity that has seen decreasing inventories a buzz with action. Despite damage done what's left of available properties have decreased in numbers while increasing in value. It appears "that sky rocketing costs, diminishing land, and chart busting growth" along with the weather have conspired to produce a shortage of "affordable homes." These significant factors have enhanced the wide range of properties in Miami and surrounding markets. In Palm Beach the median price of a home is now $339,000, up 31 percent from last year. The hurricanes merely "exacerbated the problem," the lack of available, affordable property, diminishing an already dwindling supply. "Price wars are raging" and homes are normally going for far more than their asking prices. Of course it's good news for Realtors but for those faced with the task of buying a home for whatever reasons they will be forced to pay more. As with many resort areas "police officers, teachers government workers and low income workers" are at an extreme disadvantage considering the prospect of owning their own home in a market like Palm Beach or Miami Beach where prices will rise more before they fall and affordable housing will be a less of a priority.
Last spring the resale of single family homes rose by 19 percent in Miami-Dade County. "House hunters" were rushing to lock into cheaper rates while they could but the real drive behind Miami's market was the exploitation of downtown, the beach and older neighborhoods and a growing number of condo developments. Condominiums and beach front properties are still an increasing part of the market that caters to a healthy "domestic and international second home market." According to Miami's Downtown Development Authority there are about 10,000 residential units "slated to open" in Miami's Brickell area by 2006. The Related Group of Florida will open The Plaza on Brickell with more than 1,000 units. Neo Lofts is another "199 unit loft style condominium, housing one to two bedroom units," 713 to 1620 square feet, that
were priced at $1 12 ,000 that opened in May of 2002. With 9,000 "completed but unclosed condos in Dade County" for the first quarter of 2004 the inventory is rising but there is still steady demand.
A large portion of condominium units that have been sold aren't complete. There is still a frenzy of local and vacation home buyers ready to purchase their piece of Miami Beach paradise. It is not unusual for would be buyers to camp out "over night in front of sales offices, pestering brokers, developers and scooping up multiple units in the real estate version of scalping." A 39 year-old spa owner from San Francisco recently descended on Miami Beach for the weekend to buy a second home. She arrived at the office at 8 AM on the Saturday she visited. She left with what she felt was a bargain of "350,000 for a two bedroom, two bath unit." At the end of the day she checked back with the office on behalf of a friend to find the price had risen to $380,000 for the same unit.
Despite the rampant development of condominiums the demand for their use as primary residences or vacation property shows no signs of slowing down. They are not only luring second home buyers but first time buyers, empty nesters, and one-time renters that prefer the convenience and security of condominium living. Miami Beach's prime location makes it a premiere attraction but even in neighboring Wynwood developers are converting warehouse buildings to 36 unit loft structures, private art studios, museums and galleries. More condo developments are scheduled to turn up on Miami Beach to exploit the location, views,
escalating property values and lack of inventory of the like.