The collapse of the US housing market in 2008 led to a huge number of condos that were unable to be sold in Miami, Florida, but the market now appears to be strengthening and some 500 condo units in a Midtown complex are being marketed by an investment group.
Ronald Krongold, a longtime investor in Miami, was positive about how the real estate market was moving. "We bought right," he commented recently. "We're able to sell at a good profit, but less than anyone else."
Developers are now coming back into the reviving Miami market, as demand from investors grows and inventories that were available during the tough years fall. Analysts have estimated that at least 90% of the 22,000 new condos that were built in and around Miami during that time have been sold. Goodkin Consulting, which produced a study in the summer, estimates there are now around 2,200 that remain unsold.
In the downtown area there are a number of high-rise projects being sold, as demand from investors is motivating builders to cash in.
Interestingly, although the Miami market is bounding ahead, there does not appear to be much demand from local buyers. Overseas buyers from countries such as Brazil, Venezuela and Argentina are beginning to see some competition from buyers in Canada and New York, according a real estate broker. Demand for rentals is high too, as locals are still quite wary of buying real estate given the recent history.
