It may be easier to find foreclosed and distressed properties in Miami compared to other metro areas as on the whole as the Miami economy is still struggling to find it's footing. This is impacting real estate as households find it difficult to cope with high debt burdens. Since 75 percent of first quarter townhome and condominium sales across Florida were cash transactions, it appears that investments continue to drive the real estate market in the state. Foreign investors are particularly active in Miami compared to the national market, helping to increase the competition for desirable properties. These activities have contributed to eleven consecutive months of rising home sales reported in Miami as of March 2013.
Florida Realtors reported 3,487 closed sales on Miami single family homes in March 2013, at a median sale price of $240,000. Median sales prices were up 26.3% year over year. For some homebuyers and investors, Miami condominiums may represent a better opportunity; the March 2013 median sale price of these properties based on 4,431 closed sales was $117,750, with a similar 26.6 percent price increase year over year.
Condominiums Most Popular Property Type in Miami Real Estate
Miami is one of few areas where recent condominium sales have outstripped sales of single family homes, indicating that the conveniences offered by condominium living continue to be highly desirable to Miami homebuyers and renters. The number of area townhouses and condominiums sold in the first quarter of 2013 was up 2.9 percent over the same quarter a year prior.
Miami's location also attracts significant numbers of out of state buyers who live in Miami on a seasonal or vacation basis. Between these purchasers and investors, of all properties sold in Miami during March 2013, 43.6 percent were purchased by absentee buyers - those who indicate that a property bill should be sent to an address other than the property purchased.
Top Neighborhoods to Look for Miami Foreclosures
Miami foreclosures and distressed properties are potentially lucrative investments given the annual double-digit price appreciation recently posted for both single family properties and condominiums. Between the appreciation and increased real estate activity, properties in the lowest price segments are becoming scarcer; sales of properties priced below $100,000 dropped 11.2 percent in March over the previous year, while sales of properties priced below $200,000 dropped 3.3 percent during the same period. The impetus is therefore on buyers and investors to act quickly when a Miami foreclosure appears on the market in the right price range.
According to Metro 1 Properties, 2012 residential rental rates in the highly desirable Wynwood neighborhood were over $2 per square foot per month. This highly diverse and trending neighborhood is a well-integrated mix of residential, commercial, and industrial property, further enhancing the prospects for investors interested in purchasing Miami foreclosures for future rental.
The Little Havana neighborhood is centrally located, within walking distance of downtown and the upscale Brickell area. It is one of the most established neighborhoods in Miami, and as one of the larger districts can provide increased foreclosure opportunities for buyers. Both single family and multiple family properties are regularly listed in this neighborhood.
The Miami Association of Realtors predicts that future increases are in store for the Miami real estate market, leading to increased absorption of distressed properties. New plans for condominium complexes are also in the works to meet growing demand. For many buyers and investors, this shows that now is the right time to be purchasing Miami foreclosures.