Trend for Real Estate in South Florida
I want to offer you for discussion my article which was posted today on globalrealtypartneers.com. I have used the artiche from Miami Herald from January 18,2012 and charts from aboutinflation.com for taking information.
Real estate trend for next few years in South Florida is obviously going up! We will try to support this statement by two charts taken from the Miami Herald in the January business section and from the web site www.aboutinflation.com. At this point we will just assume that the data provided by those 2 sources are correct. At the end we will provide you data taken from third independent resource.
As you can see from the chart below that the prices for real estate in Florida has fallen below the 2003 level and since then is stabilizing. The chart also shows us that the US real estate index is about 15-18 % below the historical linear real estate graph for Miami real estate trend.
Now we want to discuss part of the article taken from the Miami Herald at January 18th.
Comparing the housing bubble in Miami to the nations.
South Florida’s housing crash may be old news, but recent data offer some valuable perspective.
The Federal Housing Finance Agency maintains appreciation indices for metropolitan areas, which are similar to the famous Case-Shiller index but more local. By stacking up Broward and Miami-Dade’s indices to the nation’s, the warning signs are hard to miss.
The chart anchors all three indices to the first quarter of 2000, so the numbers show appreciation since then. Real estate got out of hand across the country, with appreciation peaking nationally at 166 percent in 2007. But in Broward, values soared 272 percent. Miami-Dade did even better, up 283 percent.
It’s easy to see how quickly values collapsed, but the chart also points out something that tends to be overlooked amid the wreckage of real estate. Home values are still ahead of where they were in 2003.
From January 2012 when this article was written, we see a strong appreciation in real estate in Miami, especially for Miami exclusive real estate. We see that developers are selling the new pre-construction projects above $1,200 per foot in such projects as Mansions at Acqualina at Sunny Isles,Porsche Design Residences, and Oceana at Key Biscayne. Only new development, Chateau Beach in Sunny Isles re-released at $780/$800 per foot with an ocean view.
Related to the secondary market or already developed market, local property has actually held its value better than the average home in the United States. According to the FHFA, the average U.S. home is worth about 40 percent more than it was at the start of 2000. In Broward, the average home is worth 49 percent more. In Miami-Dade, it’s 56 percent more valuable.
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