Sobe Luxury Homes Blog

MIAMI BEACH: South of Fifth (SoFi) prices climb – see why it’s a prime time to buy

Posted on September 22, 2011 by admin

Smart end users and investors alike are picking up units in “South of Fifth” extremely quickly these days. Unlike other areas of Miami, there is extremely limited supply and limited real estate in this coveted area of South Beach.  ”South of Fifth” is composed of only 5 blocks at the end of South Beach with unsurpassed ocean, views and limited land and it’s just a matter of time when this will be the neighborhood that only a select few will be able to enjoy and call home and this is why: 

In certain buildings, such as Murano Grande, ICON South Beach, Murano at Portofino, Apogee, Portofino and Continuum there is a very limited number of units for sale.  We have seen these buildings hold their value and now we are seeing the pricing climb.  These buildings are selling in the $550 (on a low end) to over $1,600 per sqft.  Pricing will vary by building, views, etc but over all it’s a seller’s market (some buildings have as little as 3% inventory in the resale market).

Christian and I , and members of our SoBe Luxury Homes team, have received unsolicited offers for customer’s units in an effort to get into this market - something unheard of 3 years ago.  We all know what happened to the market a few years back, yet Miami and Miami Beach remain very much in the game and SoFi tops all the desirable neighborhoods.

There are good buys, but certainly not in every building.  We are part of a round table made up of a select group of top brokers named “Condo Experts” (we meet once a month in a round table setting to discuss the market, trends and new sales) and the top prediction is that high end properties in South of Fifth will reach $2,000/sqft before year’s end. On the other hand select luxury buildings outside of South Beach and some areas in Miami are not having nearly as many transactions as we are seeing in South of Fifth.  However the volume of sales has picked up across the luxury market.

As in other areas in the country, the real estate business at the end of the day is ALL about location, location, location and there’s and very few neighborhoods in the country or even in the world are seeing the success we have been experiencing in South of Fifth.

 For a list of some of the best deals in SoFi please write to Ivan  ivan@sobeluxuryhomes  or call 305.490.0028 or Christian christian@sobeluxuryhomes.com or call 305.608.6681. 

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Condo Supplies Shrink, Prices Rise.

Posted on August 24, 2011 by admin

By Marily Bowden

Brickell’s condo inventory, boosted by more than 10,000 units during the building boom preceding the downturn, is approaching a normal supply, brokers say, and some price appreciation has begun.

According to a study for the Downtown Development Authority by Goodkin Consulting and Focus Real Estate Advisors at the beginning of this year, 32 new buildings delivered 10,326 units to Brickell.

Although it lists only buildings on the resale market, not those sold directly to developers, brokers say the Multiple Listings Service, or MLS, is a good indicator of market activity because most developer units have now been sold.

“Annecdotally, we hear that the remaining new units are selling at a healthy pace,” said Christian Basik, managing broker at Esslinger Wooten Maxwell’s Brickell office.

Icon Brickell, among the last new buildings to be delivered, has only about 150 of its 1,800 units left to sell, said Christian Kawas, a Realtor associate with the SoBe Luxury Homes team at Douglas Elliman Florida, and sales there are averaging about 40 a month.

On the resale front, Mr. Bascik said, inventory has dropped from 2,111 available units at the end of 2010 to 1,720 today – a 19% decrease.

“We now have 11 months supply of resale inventory,” he said. “Sale activity is 22% higher over a year ago. We certainly feel we are entering a healthier market.”

Carlos Villanueva, the Keyes Co.’s district sales manager, finds 921 active MLS listings for the greater Brickell market, including Brickell Key. Over the past six months, he said, there have been 408 closings, with 328 pending sales, for an absorption rate of 13.25 months.

On Brickell Avenue and Brickell Key alone, Mr. Kawas said, the MLS lists 849 properties selling at a pace of about 80 a month, leaving 10.50 months of inventory, “which is pretty much a balanced market.”

With consistent sales activity eating into inventory, sales prices are starting to recover. In the overall Brickell market, from the Rickenbacker Causeway to the Miami River and the bay to I-95, Mr. Basick quoted the average sales price for resale units from April through June this year at $267 a square foot. From September through November 2010, it was $235 a foot.

The average asking price per unit from April through June 2011 was $510,000, he said, but the average price of a sold unit was $340,000.

One cause for appreciation optimism is the reduction in the number of short sales, which keep assessments low.

“We’ve gone from a 15-month supply a year ago to a four-month supply,” Mr. Basick said.

“In general, Brickell is not now being affected by the foreclosure market,” Mr. Kawas said.

“It’s interesting that in Miami-Dade, of the 771 properties in foreclosure, only 34 are assessed at north of half a million dollars and most are outside urban areas.”

One unknown is the amount of “shadow inventory,” or lender-reclaimed units not yet put on the market, but Mr. Kawas said it’s unlikely there’s enough to have a negative impact.

“Those units sell within hours in most cases,” he said, “and when they do come back, it will be at a higher price point than the last batch.”

Brickell Key units are commanding the highest prices in the area. Mr. Villanueva found an average sales price of $1,010,080 among Brickell Key condos, more than double the average of $498,589 for Brickell and surrounding areas.

“Our trend righ now id definitely towards a high demand for bigger units,” said Nery Deza, office manager of Swire Realty, an affiliate of Swire Properties, the island’s developer. “As a result, our inventory is very low.”

Most sales are still cash deals, she said; buyers tend to be from Brazil, Venezuela and Mexico, with some Europeans in the mix.

While the newest product, Asia, is popular, Ms. Deza said, older buildings such as Carbonell, The Courts and the three Tequestas are also seeing a lot of activity.

“People are still finding value in older, established buildings,” Mr. Bascik said. “Yo get a bigger bang for your buck, particularly when it comes to views.”

“Expect for standouts like Santa Maria,” Mr. Kawas, said “older buildings on Brickell definitely have a lower price point.

“The advantage of the older buildings is larger spacecs, but it’s mostly the newer that are trending right now. The newer have much more turnover.”

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Paramount Bay – Developer Sales Launching Soon

Posted on August 23, 2011 by admin

UPDATE 8/24/2011

Building tours are available for qualified buyers.  Please ask us via email at christian@sobeluxuryhomes.com or 305 608 6681.  Currently if you want to reserve a unit it is possible with a refundable $25,000.00 deposit.  Sometime in September when contracts are ready, you will need a 10% downpayment and an additional 10% after the rescission period ends (15 days).

We are expecting the much anticipated developer’s sale to begin soon.  Our sources are telling us that prices willstart at $375 per SqFt for low floor units and go into the mid $400′s per SqFt.For more information on buying a unit at Paramount Bay please contact Christian Kawas at christian@sobeluxuryhomes.com or on my cell phone 305 608 6681.

Please read below for a full description of the amenities and features of
this 5 star building.

The high-rise building at Paramount Bay in Miami will be strictly a
residential oceanfront tower. With forty-six floors and three hundred and sixty
luxury condo apartments, Paramount Bay Miami will be home to some of the most
prestigious and sought after private oceanfront residences along Miami Beach
and Biscayne Bay. The typical floor plan sizes of condominium units along the
coast are roughly 600 to 1200 square feet. However, at Miami’s Paramount Bay
Condo Tower, the two bedroom and three bedroom suites range anywhere from 1200
to over 2000 square feet in size. These represent true luxury living in private
homes within a master-planned and beautiful condo tower real estate development
community. Currently, the luxury residence condos at Paramount Bay Miami will
range from $600,000 to over $2 million per private home.

Features

All condominium residences at Miami’s Paramount Bay real estate property
will feature 10’ ceilings, considered to be overheight. As well, large,
expansive glass windows from the floor to ceiling will emphasize modern living
and natural light. High-end appliances will be featured in the gourmet
European-style kitchens at the Paramount Bay homes. Marble countertops and
European cabinets made from exotic woods are just some of the unique and very
affluent features surrounding this Miami real estate property. Six foot glass
showers with oversized soaker tubs will allow you to truly relax and live life
to the fullest in the comforts of your own luxury private home at Paramount Bay
Miami. As well, there will be Jacuzzi relaxation tubs.

Amenities

• Heated sunset swimming pool

• Sun deck

• Outdoor living rooms featuring
outdoor beds, cabanas & chase lounges

• Spa and fitness center

• Multi-function party and
clubrooms

• Waterfront promenade

• Signature restaurant in the
historic mansion used in the film “Something About Mary.”

• Lounge billiards table and
state-of-the-art entertainment center

• Wired for high speed internet and
will be a wireless hot spot.

• Room service

• Dry cleaning

• Maid service

• Flow through floor plans in all
2+ bedroom units

• 8′ wide terraces

• 10′ ceilings

• Floor to ceining glass windows
and doors

• Wolf commercial style appliances

• Marble countertops

• European cabinets available in
exotic woods

• Floating vanities with double
vertical storage units

• Stone countertops

• Six foot wide glass showers

• Jacuzzi relaxation tub

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Buying a Foreclosure? Read This First – A Roadmap to Success

Posted on July 26, 2011 by admin

Buying a Foreclosure? Read This First
- A Road Map to Success

In today’s real estate market there are several ways of getting a deal. Given market conditions, there are various ways of buying real estate under market value; one of them is buying a foreclosed property, also known as bank-owned or REO (real estate owned).   There are also several other different ways to spot a deal including taking a close look at Resales and Developer Sales.

In the paragraphs below we have outlined a few tips on how to approach the foreclosures buying process, as it is considerably different than when buying a resale.  The transaction itself is not so different but the approach and search is.  We have also outlined other ways to find the best real estate deals in Miami.

The first thing you need to do is contact a Realtor that has closed a number of foreclosures and can guide you on what to expect. Also he must be well versed on the different areas of interest.  Another important reason to contact a Realtor is that they have access to the MLS (Multiple Listing Service).  This is different than what consumers can access on the internet.  Consumers are able to access certain MLS feeds, most feeds get updated weekly and in buying a foreclosure that is old information. Also sites like Realtytrac.com show you information on homes that have become delinquent with their mortgage and are in risk of foreclosure and that information is very premature since the process to foreclose can take up to 18 months.

Why Are You Buying?

Primary or Secondary Homes – If you are looking to buy a home to use as your primary or secondary residence, location becomes a priority.  Most neighborhoods only have a couple of foreclosures at a time and they quickly get sold.  This is what you should do:

  1. Ask your Realtor to send you a list of all REO or Foreclosed homes in the neighborhood you are searching, and see if some work.  If not,
  2. Ask your Realtor to put you on an alert on the MLS (Multiple Listing Service) since your Realtor should have access to this.  Depending on the neighborhood, foreclosures get released sporadically depending on when the banks get through the foreclosure proceedings.  BE PATIENT. If you don’t have time to wait, then,
  3. Ask your Realtor to get you a list of homes that are priced well on the resale market. (and not necessarily foreclosures?)

Buying to Invest – If you are buying for investment purposes and are flexible on location you will have several more options, but it will be important to be specific about the criteria you are looking for.

What to do

  • Give him/her an approximate budget such as $200,000-$300,000, instead of anything under $500,000 or anywhere between $200,000- $800,000.  These ranges are too large and property will vary tremendously.
  • Be as specific as possible with what type of property you want:  are you looking for a single family home, a studio or a large luxury condo?  Communicate this to your Realtor so that he can take your business objectives and use your time as effectively as possible.
  • Be clear, but realistic on what expenses you expect to carry and what kind of income you are expecting to return.  Due to SEC regulations, Realtors are restricted to talk about ROIs, however they can get you information on carrying costs for the real estate as well as rental rates for the area.
  • Ask for options:  If the property that you are looking for doesn’t exist in a particular neighborhood, ask your Realtor to scope similar foreclosed properties  in other neighborhoods.

Cash is King

When buying a foreclosure cash is king.  Although financing is possible, consult with your Realtor whether it is realistic to submit offers to foreclosed properties with a financing contingency.  It will depend on the area.  For example, in Miami-Dade County foreclosed properties are receiving dozens of offers within days of being listed, and banks will have to choose one out of many offers.  Most of the time they will pick the highest cash offer that comes in.  In most cases most offers for foreclosures are cash, so even if you submit a full price offer with financing, most likely someone else will win the bid for the property.

When writing the offer, consult with your Realtor on what he thinks of the asking price.  If the price is below market value and the home is getting heavy traffic offer full price and a quick closing.  Banks will pick your offer over anything under listing and will choose your contract over anybody else’s, closing in 30-45 days.

Alternatives to Buying Foreclosures

Developer Sales

If you haven’t had great luck with a foreclosure don’t give up on finding a grea investment.  Ask your Realtor if the area has Developer Selling Out inventory.  In Miami-Dade County for example, many developers renegotiated their loans with the banks and they were able to discount properties to up to 50% from preconstruction pricing, to compete with the foreclosure market.  So many people flocked to what are called developer sales and purchased the inventory at foreclosed prices.  The benefit… not only did you get a property at foreclosure price, you got a brand new unit, in a brand new building with a one year warranty.

Short Sales

Short sales are very tricky and not for everyone.  It is important to know what they are and if they fit your needs. We strongly believe they should be the last resource after 1.Foreclosures  2.Developer sales, and 3.Resales.

Short sales or pre-foreclosures are when the bank has not yet formally foreclosed on the real estate.  The seller decides to sell the property at less than what he owes the bank and cannot come up with the difference (deficiency). Therefore the sale needs to be approved by the bank.  In most short sales the process can take over a year.  In most cases the banks will start the process at the time there is an executed offer by the buyer and seller and they will give you an answer of whether they approve the sale in 6-8 months.

For a current list of available foreclosures in your neighborhood
please email Christian christian@sobeluxuryhomes.com

 

Foreclosure Statistics
for Miami-Dade County as of July 26, 2011

Total number of listings in the
MLS: 16,027

Total number of foreclosures in the MLS (homes and condos): 742

Number of foreclosed Single Family Homes by Price range:

  • Total available foreclosed Single Family Homes
    384
  • Under $100,000: 155 (40%)
  • $100,000-$200,000: 135 (35%)
  • $200,000-$300,000: 57 (15%)
  • $300,000-$400,000: 17 (4.5%)
  • $400,000-$500,000: 9 (2%)
  • $500,000 and up: 13 (3%)

Number of foreclosed Condos and Townhomes by Price range:

  • Total available foreclosed Condos and Townhomes
    358
  • Under $100,000: 177 (50%)
  • $100,000-$200,000: 92 (25%)
  • $200,000-$300,000: 43 (12%)
  • $300,000-$400,000: 19 (5%)
  • $400,000-$500,000: 9 (2.5%)
  • $500,000 and up: 19 (5%)

As per the above data, 75% of the foreclosure market takes places in the market below $200,000.  Also important to note the following trends:

  • In the last 90 days there have been a total of 2225 foreclosures that have closed (successfully sold) at a pace of 741 sales per month in Miami-Dade County
  • There are a total of 742 foreclosures available
    currently, and Miami Dade County is averaging 741 sales per month

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Entertainment Complex Coming to Midtown Miami

Posted on July 19, 2011 by admin

The vacant, heavily verdant area known to locals as “Jurassic Park” will soon be the home of a $60 million project including a 220,000 square foot retail center with a premium movie theatre and a 200-room boutique hotel according to the South Florida Business Journal. Continue reading →

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Progressive Sales Continue In Florida Real Estate Market

Posted on July 5, 2011 by admin

May marked the sixth consecutive month of statewide year-over-year sales increases for existing home and condos according to Florida Realtors®.  Miami in particular had a 20 percent uprising in home sales in comparison to 2010.  Industry leaders expect this trend to continue with favorable interest rates over the next several months. Continue reading →

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The Renaissance of Miami’s Icon Brickell

Posted on June 22, 2011 by admin

Miami’s Icon Brickell is experiencing an epic revival and fueling the energetic spirit of the downtown Miami real estate market.    Just one year ago, the Icon Brickell complex was on the brink of desertion, but today the shining towers are a tribute to the perseverance of those riding out the real-estate storm.  According to The Miami Herald, more than 930 condos have sold in two of the towers and a third tower has sold 518 of its 520 units, stating downtown Miami’s largest condo complex has gone from “nearly three-quarters empty to three-quarters sold.” Continue reading →

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South of Fifth to be Renovated and Renamed Ocean House

Posted on June 9, 2011 by admin

South of Fifth is being renovated, relaunched and renamed Ocean House.

South of Fifth, soon to be Ocean House, was Nichols Brosch Wurst Wolf & Associates‘ architectural masterpiece. The Residences at South of Fifth is an exclusive 28 unit boutique building by the ocean, standing on the sand in the most upscale residential corner of South Beach. A lavish interior architecture, with luxurious outdoor spaces, South of Fifths units vary in size from 1400 SqFt to 6300 SqFt.

Continue reading →

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LeBron Leading the Heat, Miami Leading the Market

Posted on June 7, 2011 by admin

Its getting hot and were not talking temperatures or basketball. Fresh off the e-press, Miami trumps as Americas top city for buying vs. renting (tying with Las Vegas) according to real estate website Trulia.com. With the previous ranking of 5th in the nation just last month, turn up the A/C because theMiami real estate mercury is rising.

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Foreign Billionaires Travel to the New Global City for Miami Beach Luxury Homes

Posted on May 24, 2011 by admin
With a storied history of transformation that has led to Miami being ranked among the most glamorous and desirable locations to live and vacation, along with the likes of New York and L.A., the city is holding true to its international roots as the place Where Worlds Meet.

With a storied history of transformation that has led to Miami being ranked among the most glamorous and desirable locations to live and vacation, along with the likes of New York and L.A., the city is holding true to its international roots as the place Where Worlds Meet.

Continue reading →

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