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Inside South Florida - 13

June 6th, 2022

Miami-Dade real estate posts 10th-Highest total home sales month in history

Source Miami Realtors

Miami-Dade and Broward May Single-Family numbers

Source Miami Realtors

May new home sales up 10.7%

After four consecutive monthly declines, new home sales posted a solid gain in May as some buyers rushed into the market before the Federal Reserve’s anticipated June interest rate hike.

Sales of newly built, single-family homes in May increased 10.7% from an upwardly revised reading in April, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Source: Florida Realtors

Second home demand has fallen

According to a report from Redfin demand for vacation homes has fallen below the pre-pandemic baseline for the first time in two years, with mortgage-rate locks for second homes down 4% from before the pandemic in May, that’s down from a revised rate of 3% above pre-pandemic levels a month earlier, and 70% above pre-pandemic levels a year earlier.

Home flipping

Attom’s first-quarter (1Q) 2022 U.S. Home Flipping Report finds that, as a percentage of sales, home flips have increased in all of the last five quarters, but profit margins have been dropping for the past six quarters.

Among all flips nationwide, the gross profit on typical transactions – the difference between the median purchase price paid by investors and the median resale price – stood at $67,000 in the first quarter of 2022. While that’s up 5.5% from $63,500 in the fourth quarter of 2021, the first increase since late 2020, it was 4.3% less than the $70,000 level recorded in the first quarter of 2021. Read More

1 in 4 sellers cutting price

According Altos Research, Rising rates and economic shifts have slowed down super-eager buyers as the market shifts to “much more normal conditions.”

Tenants continue Moving to South Florida in search of Class A Office Space

For the second quarter in a row, net absorption in Miami totaled over 200,000 square feet, with the majority occurring in Miami’s central business district (CBD). Driven by expansions, Class A product accounted for approximately 85 percent of total absorption in the first quarter. Read More

Bidding wars have long been a staple of hot housing markets (WSJ)

Now, these contests are becoming more commonplace in the rental market. Real-estate agents from New York to Chicago and Atlanta say they see more people than ever making offers above asking to lease homes and apartments that they will never own. An increasing number of white-collar professionals—some of whom recently sold homes—are reluctant to buy because of record-high home prices, rising mortgage rates and limited supply. They are renting instead, helping to drive a frenzy for leased properties of all kinds, and helping fuel the trend of offering above asking rents, Will Parker reports.

New Developments

Aimco proposes apartments in Edgewater

Aimco has proposed a 60-story apartment tower along Biscayne Bay in Miami’s Edgewater neighborhood. The developer (NYSE: AIRC) owns 1.1 acres at 555-640 N.E. 34th St. through multiple affiliates, including Biscayne North LLC.

Totaling 712,032 square feet, the new tower would have 241 apartments, a 4,696-square-foot restaurant on the water, and 380 parking spaces. Most of the units would be over 1,000 square feet. Source: South Florida Business Journal

Mainstreet NCC Flagler LLC, an affiliate of Mainstreet Capital Partners, proposed the Flagler Sky View apartments in Fort Lauderdale’s Flagler Village neighborhood.

The 30-story project, on a 0.7-acre site at 501 N.E. Fourth St., would total 441,654 square feet. It would have 270 apartments, 2,680 square feet of commercial space and 322 parking spaces. There would be co-working space on the first floor, and an amenity deck with a pool on the seventh floor. Source: South Florida Business Journal

Okan Group broke ground in downtown Miami on Okan Tower, which would be the tallest building in Florida.

Located at 555 N. Miami Ave., the condominium, hotel and office tower would soar 70 stories – or 902 feet high. The tallest building in Florida is currently Miami’s Panorama Tower, at 868 feet.

Also the Tower would feature the highest pool in the U.S., said Kasim Badak, CEO of Okan Group’s development arm in Miami. He said it would be a $400 million project.

Okan Tower will have the 316-room Hilton Miami Bayfront hotel, 236 short-term rental condo units managed by Hilton, 163 “sky residences” condos, 14 two-story lofts, and 64,000 square feet of office space.

Badak said the condo units will range from 450 to 2,000 square feet. Prices start at $600,000.

The developer said Okan Tower should be completed in 2026.

Airbnb OMG

Airbnb will distribute US$ 10 million towards the construction of exotic homes. In all, there will be 100 properties, of the most different formats. Read more

MIA airport

Over 725,000 travelers are expected between June 30th and July 4th. MIA said it is currently averaging 145,000 travelers a day, up nearly 20 percent from the same time period during last year's holiday weekend.

With the additional travelers, officials are encouraging people heading to the airport to be dropped off or use ride-sharing services with garages expected to fill up by Thursday.

Officials are also urging travelers to arrive at least three hours before domestic flights to give enough time for checking in. Passengers are encouraged to do airline check online.


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