According to the Miami Association of Realtors, strong demand for real estate in vibrant Miami resulted in a third consecutive record sales year and two years of double-digit price appreciation.
“Record demand for Miami properties from both domestic and international buyers resulted in another sales record in 2013,” said 2014 Chairman of the Board of the MIAMI Association of REALTORS Liza Mendez. “We expect strong demand to continue in 2014 for Miami real estate but are encouraged that more homeowners are listing homes for sale, creating more balance between buyers and sellers.”
There were 30,041 homes and condos sold in Miami-Dade County in 2013, setting a new annual record that is 8% higher than the previous record set in 2012. Sales of single-family homes last year totaled 12,901, an increase of 12.5% compared to the previous year’s total of 11,463. Condominium sales increased 4.6%, from 16,383 in 2012 to 17,140 in 2013.
Starwood Capital Group CEO Barry Sternlicht also said Florida’s lack of income tax is attractive to companies and high-net-worth individuals. “Everyone wants to come here,” he said. “Also, you have really low taxes. We’ve noticed. My generation, which is the tail end of baby boomers, we’re coming. We’re changing our addresses and we’re coming to low-tax states.”
Outside investments are good, but Related Group CEO Jorge Perez said one thing Miami needs is more local buyers. Calling it “the hottest city in the world,” Miami has no problem attracting international money, he said. “South Florida has become, as opposed to just being fun in the sun, a serious city, a great city,” Perez said. “In terms of problems in South Florida, we still don’t have the local buyers for our private properties we’re building.”
South Florida’s rental market also remains strong, Camden Property Trust President Keith Oden said, “We love this market,” Oden said. “We think there is a lot of underlying strength here, and 2014 looks to be another strong year.”