Wealthy buyers from Latin America are helping to turn Miami into a property hotspot with the Wealth Report 2012 from real estate consultants Knight Frank showing that the Florida city saw growth of 19% last year.
Along with London and Vancouver, Miami is one of the most sought after locations for property investors and regarded as a safe haven for their cash.
But it is not just the wealthy who are buying in Miami. Other international buyers seeking a holiday home or a house that they can rent out are helping to make Miami a top spot for buying.
This means that demand for property is unprecedented, according to the Miami Association of Realtors. The total number of listings, including single family homes and condominiums, that pended in Miami-Dade County during the month of February increased 29% compared with a year ago and are up 14% on January.
‘Despite the significant decline of housing inventory in the Miami real estate market, we continue to see rising demand,’ said Martha Pomares, 2012 chairman of the board of the Miami Association of Realtors.
‘Rising pending sales point to increased future demand locally, as Miami continues to attract US migration, in addition to substantial international buyers and investors and second and vacation home buyers,’ she explained.
Total cumulative pending home sales, including single family homes and condominiums are currently 4.1% above what they were a year ago and 1% higher than the previous month.
Pending sales of condominiums were 3.1% higher year on year and 3% higher month on month while pending sales of single family homes were 5.4% up year on year and 7% up month on month.
Population growth in Miami coupled with declining supply, limited land available for construction and increasing demand will continue to drive appreciation, according to Patricia Delinois, president of the Miami Association of Realtors.
‘Miami continues to draw worldwide attention from buyers and investors who are taking advantage of the opportunities, lifestyle and local amenities our market has to offer,’ she added.
Increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalised within one or two months of signing.