March 29, 2020
South Florida housing crunch unlikely to ease in 2020

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Florida Trend Real Estate

South Florida housing crunch unlikely to ease in 2020

| 1/6/2020

South Florida housing crunch unlikely to ease in 2020

As we kick off a new year, South Florida is at the forefront of a surge in home values that leads the nation, putting pressure on many buyers who can’t afford the homes they want. It’s a far cry from the market a decade ago, when home values were plunging and the share of mortgages in delinquency was at an all-time high. Now, the re-emergence of South Florida as a leading-edge high value market will keep posing problems for buyers. [Source: South Florida Sun-Sentinel]

The cold spell blanketing Florida’s luxury condo market will continue in 2020, experts say

Sellers are experiencing sobering price corrections. The average price of a luxury condo in 2019 was 82 percent of its original listing price, compared to 88 percent in 2018, according to multiple listing service data compiled by Berkshire Hathaway HomeServices EWM Realty. [Source: The Real Deal]

Industrial space is growing in South Florida, and rates are still rising

Warehouse supply is expected to grow at the same rate in the new year as it did in 2019. But it still won’t be enough to satisfy demand in Miami-Dade and Broward, say experts. The primary driver: e-commerce, said George Pino, the president of the Doral-based commercial real estate brokerage company State Street Realty. As online sales increase, companies need to stockpile goods near consumers for quick delivery. [Source: Miami Herald]

Developers fail math class in student housing sector

High supply and lackluster student enrollment is putting stress on the student housing sector, with some analysts saying developers sought high rents for new apartments but missed the mark. Around 3.9 percent of student housing-backed CMBS debt was more than 60 days past due at the end of November, a 1.1 percentage point increase from last year, according to Fitch Ratings Inc. [Source: The Real Deal]

Art is fast becoming Miami’s must-have amenity in luxury real estate

Art is fast becoming Miami’s must-have amenity in luxury real estate. Miami developers and real estate agents are targeting art collectors as buyers for their new oceanfront condominium towers and multi-million dollar homes. It’s not surprising Miami is home to Art Basel one of the world's most prestigious and well-attended art fairs making it the perfect location to incorporate art within a signature lifestyle. [Source: ]

STAT OF THE WEEK
$76 million
More large-scale office and retail development is coming soon to Miami’s artsy neighborhood. New York-based Rose & Berg Realty Group snagged a $76 million loan to build the Class A office and retail complex Gateway at Wynwood. [Source: The Real Deal]

ALSO TRENDING:

› Welcome to ‘real’ North Beach. Is the anti-South Beach finally ready for prime time?
The neighborhood long touted as Miami Beach’s Last Frontier, its next inevitable hot spot, has been stubbornly stuck in the past. Though North Beach never hit the skids like South Beach did decades before, the area — particularly its commercial and multi-family districts — continued a slow and steady decline.

› Good news, bad news on Tampa Bay area home prices and wages
The Tampa Bay area’s home prices rose nicely in 2019, and the outlook for 2020 continues to be strong. Wage growth has not kept up. That’s the composite picture painted by three surveys released last week by companies that track real estate and jobs data both nationwide and on the state and metro level.

› Naples-based Premier Sotheby's International Realty appoints former president as new CEO
A Naples-based real estate firm that is involved in many of the area's luxury home sales has rung in the new year with a leadership change. Headquartered in Naples, Premier Sotheby's International Realty is a Sotheby’s International Realty affiliate ranked as the 34th largest real estate brokerage company in the country.

› Realtors Association breaks ground on new facility in Kissimmee
The real estate business is booming in Osceola County. And so is the Osceola County Association of Realtors. The association is bursting at the seams at its current location on Shady Lane in Kissimmee, and on Friday, it broke ground on a new building.

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