Fernando's report: Market conditions this week for Sunny Isles Beach, Golden Beach and adjacent areas..

Wednesday, July 06, 2016

Sunny Isles Beach, FL. Market conditions in real estate for the Sunny Isles Beach - Golden Beach Area seem to be settling after four long months of price re-accommodation.
A perfect storm was caused basically by unforeseen electoral campaign scares, the disappearance of high output markets as Brazil and natural adjustment forces. The market was near a complete halt after years of flourishing increase.

The week in numbers.

100 Bayview Dr. # 1907
just sold for $ 470,000.
The last 7 days were marked by intense "end of the month" activity, Sunny Isles Beach-Golden Beach had 46 "Price decrease" properties, 31 "New listings" and 35 "Expired". Only 14 properties
went "Pending Sale". Just 9 were entered as "closed". This could configure a "buyers market" and a great opportunity for buyers with fat wallets to really make a good deal in the area.
No rentals were executed during the week, what marks clearly that most of rentals are way above the spending capability of the average family in the area.

What is affecting the market.

True to be told, there is plenty of credit money for local buyers. Low rates and even 1 % down payment plans are available. The fact is that the intense political threats provided by presidential candidates  caused a substantial "brain froze" in usually active purchasers. The locals, entered on a  "postponing of long term decision" state of mind, that hopefully will end after November.
Our beloved foreign investors, usually more trained dealing with political instability, also watch with caution the announcements of "border walls" construction and banning of entire religions, wondering how much of that is pure demagogue noises and also how could that affect their investments. So they are also on hold too, at least for now.

Segments in motion.

Believe it or not, the segment below $ 200K in adjacent areas is ON FIRE. Some houses receiving as much as 20 offers within 48 hrs.
Young purchasers are getting tired of burning their money in rent and decided to step up. Some of them even venturing as landlords in the multifamily market.
In this segment. inventory is getting sold before showings happens, even in what used to be called "ugly houses". Not so ugly anymore. More like hot doughnuts with chocolate on top.
New ownership usually brings improvement to the area in the years to come. So we should expect that areas like Golden Glades, North Miami Beach and Miami Gardens Dr. will have a positive impact out of this almost free money bonanza.
If you are in this segment of the market, prepare for real bidding wars and paying at least 10 % above asking price.
Have a great week!

Fernando Pettineroli

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