The increase of Miami condominium construction has named the city a new state bird as some 25 thousand new units are developing into the skyline. The prices of these units have increased approximately 30 percent per year. It is expected that another 40,000 units be currently in the drawing board of real estate construction.

During the next two and a half years, developers are planning to build a four- to five-year supply of new condominiums. Just about 1,000 people for each day move to Florida. With the long-term supply of condominiums, there could be no doubt an adjustment of the oversupply of condos.

According to a recent report, Miami is ranked as the hottest housing market in the nation for the third consecutive year.

For economists, however, they continue to analyze the home-price-to-income ratio. The higher the given ratio, the more the homebuyer has to stretch their budget to make payments.

Since 2001, home prices in Miami have increased up to 85 percent while the per capita income growth has averaged below 3 percent. However, the booming real estate market in Miami reflects the demographic changes of the area. Of the 1,000 people who move to Florida each day, more or less 30 percent move to the southern part of the state.

At the same time, the reason for the hot condominium market in Miami is that it has become a gateway to the Latin American commerce, which is expected to expand over the years.

Condominiums are being developed all throughout Miami indicated the diminishing amount of space for developments. Compared to 42 percent of single-family home sales, condos are now leading to 58 percent.

The demand for the condominium market in Miami has grown for the last two years. With the fast-paced market, it is expected that sellers, buyers and real estate agents are preparing to slip condominiums. Flipping the condominium would allow the owner to sell and resell the contracts even before the building is built.

Since the demand for condominium is anticipated to increase once the buildings are done, reselling is a way to address the demand. Real estate brokers foresee that an estimate of 80 percent of the buyers of each unit has an interest in reselling.

According to a Florida-based Realty Group, condo flipping has helped fuel one of the biggest residential real estate boom in Miami history. Currently, there are 60,000 to 70,000 condominiums in various stages of planning, development and construction in downtown Miami.

Many people will agree that the main factor of the booming real estate in Miami is due to the scenic waterfront locations and year-round temperate climate in which Florida alone could offer.

By Paulene Calinawan

Miami Real Estate

Sarasota Real Estate