Donald Trump just told CNBC’s Maria Bartiromo that Miami’s real estate market is doing “very well.”
Coincidentally, we just got off the phone with Luis Marin, vice president of TSG Realty in Miami.
He confirmed that the market is heating up again — and had an interesting explanation for why.
First, banks have wised up and slowed putting distressed property on the market to a trickle, which has helped restrict inventory.
More importantly, there remains strong interest in investment and income properties (meaning buying to rent out apartments or subdivisions) from wealthy Latin Americans.
Interest is particularly strong from Venezuelans and even Argentinians, he said, because shifting government policies in their home countries makes investing in properties there more tricky. Basically, it’s a way for the wealthy in those countries to protect against domestic political uncertainty.
“The good thing about investing in South Florida, you’re investing in the first, best country,” Marin said. “You have more security fiscally; you’re not going to have trouble.”
According to the MIAMI Association of REALTORS, there have been seven consecutive months of price increases, with the average price for a single-family home rising to $194,250.
Plus, earlier today, we told you about the army of cranes that are poised to rise up all over South Florida.
Finally, Marin’s comments are borne out by the FHFA’s home price index for Miami, which has shot up nearly 5.5 per cent since the beginning of the year.