MIAMI, FL - Commenting on the latest figures, Loxley McKenzie, Managing Director of Colordarcy said, “Apartments and condos in Miami are currently in high demand. Colordarcy has seen a surge in enquiries with prices relatively inexpensive for one of the world’s most dynamic cities.”
"Only two property markets in the world have managed to outpace Miami for growth. With some way to go before we can say that prices have recovered to the long term average rate of home price inflation, there is almost certainly more growth to come.”
Miami condominium sales increased 5.5% to 1499 in June which compares to the 1421 sold in June 2012 according to the latest data (Source: Miami Association of Realtors 'Miami Condo Inventory Slightly Rises, Remains Insufficient to Satisfy Demand', Jun 26, 2013). Colordarcy highlight that Miami apartment and condo prices have now been rising for 19 consecutive months.
There is currently only 5.8 months of supply of condominiums in Miami-Dade which puts into perspective why prices have been rising so consistently.
Analysts at Colordarcy point out that despite low stock levels, apartments in Miami are available from just $69,000 which makes prices exceptionally low by European standards. This brings potential yields for buy-to-let investors up to the 8% mark as rents continue to rise steadily in the city (Source: Rent Jungle, July 2013).
The balance between the cost to rent compared to the cost to buy is tilted in favour of those buying, yet locals are often unable to secure finance to invest leaving foreign investors to benefit from the high monthly rents currently being charged to tenants.
It currently costs in the region of $1,642 a month on average to rent a one-bedroom apartment in Miami with two bedroom apartments averaging $2,268 per month. (Source: Rent Jungle, July 2013).
McKenzie added, “Low property prices, high rental yields and month on month increases in property prices are making Miami a magnet for property investors at the moment.”