A recent boom in the Miami housing market can be expected to keep Florida Realtors occupied, as foreign homebuyers are looking to tie their assets to U.S. properties.
Home sales in the specified market experienced a 34 percent uptick from February to March, and the average home price of non-foreclosed houses reached $190,000 in the latter month, according to RealtyTrac.
Homebuyers out of Venezuela in particular are looking to invest in Miami houses, given the political uncertainty after the passing of President Hugo Chavez, according to CNN. Wealthy citizens of Venezuela had been buying properties in Florida since Chavez's election in 1998 to safeguard their assets, but recent unrest seems to have created another increase in buying.
Property data reveals that sales of Miami single-family homes in the first quarter increased by 10.3 percent as compared to the previous year, according to the news source. An increase in home sales conducted with cash implies a strong presence of out-of-country buyers in the housing market.
Miami luxury condos enter the market
Downtown Miami saw five new projects beginning the construction of condominiums in the first week in May, CNN notes. Le Parc at Brickell was one such building, offering condos at a minimum of 622 square feet for $280,000 and at most 1,566 square foot units priced at $699,000.
The Astor Companies may end up capitalizing on the housing boom first, according to GlobeSt.com. The company developed a total of 59 condominiums in 2007, and now, after completing $300,000 renovations to the units, is putting them on the market, just in time to benefit from renewed interest.
"With high demands for luxury units in the Miami urban core and adjacent areas, buyers will see the value in purchasing an existing top notch product in a great building without having to wait for construction to be completed," Peter Torres, vice president of Astor, told the source.
Behind the boom
This is not the first time Miami has heard of foreign homebuyers. The Miami Association of Realtors reported that the market has seen an increase of French interest in city property, hot on the heels of domestic homebuyers in April. The group collected data on the amount and location of origin of searches on the association's website. Brazil was ranked third in terms of search volume, and Venezuela ranked sixth, up from their 2012 position.