It’s a 90 percent cash sales market among the International commercial real estate investors. The editor of HousingPredictor reports that 65 percent of all condo and house sales in Miami are cash sales. This popular Florida port city is rapidly recovering while the rest of the state is still mired down amidst short sales and foreclosures.
Miami and any other Florida city you can name are truly a tale of two cities in the sense that one is up and the other is not. Miami’s story is a rags to riches one as pertaining to real estate sales. Condos, for example are selling on average at $270,300. Only one year earlier, they were going for an average of $214,012. Most sales are going to International buyers who can manage a cash sale.
Approximately 50 percent of houses that are mortgaged are in the distressed category, statewide. This includes foreclosed, about to be foreclosed and short sales. A short sale is defined as one in which the homeowner is left with a sale price that is lower than what they owe on the mortgage.
Of that 50 percent, 65 percent of those will be in the foreclosed or short sales group. This is not the case in Miami as in the rest of the state of Florida. Miami has a brighter picture.
Home prices show encouraging signs in Miami and condos show even better ones. There is now a five-month supply of available homes for sale, which is lower than other cities. A limited supply is good for the market’s recovery. The Miami sales of residential and commercial real estate set sales records in 2011. Investors find this tropical city the outstanding example of recovery in the state of Florida.