South Florida real estate is seeing a massive boom, and it looks like it won’t be going anywhere anytime soon. While markets like San Francisco and New York try and manage re-pricing in the long term, South Florida property is massively rising as buyers shell out hefty sums for the region’s premium property. Options such as Broward County hard money lending are likely helping buyers secure offers quicker.
For example, over in Miami Beach, a sale was recently closed for a two-story home in the trendy “SoFi” area boasting over 6,000 square feet. The property has five bedrooms, six bathrooms, a pair of sunrise terraces plus a sunset terrace, and even a movie theater plus an office hidden away in a glass wine vault. Dubbed “The Beach House”, the sale price was just over a whopping $15,000,000.
The Beach House is one example of properties that are seeing massive bidding wars practically the moment they go on the market. There is an influx of people moving from cities that may be accustomed to living in a building and their families may not feel as protected and secure without getting the assets afforded by a building, even if the single-family market is in high demand.
Well-known names have also contributed to South Florida’s real estate boom. American businesswoman Ivanka Trump and her husband purchased a 30+ million dollar plot overlooking the water on Miami Beach’s upscale neighborhood of Indian Creek. The couple joins American football quarterback and recent Super Bowl winner Tom Brady, who purchased a $17M home on the island with his Brazilian supermodel wife Gisele Bündchen.
The bulk of buyers for most high-end properties were overseas, primarily from Latin America, Russia, and Asia, during the times when South Florida has seen real estate booms in the past. However, those figures are now 70 percent domestic since the onset of the pandemic, compounded by the fact that many foreign consumers are still unable to visit the United States.
Even more jaw-dropping is the price recently paid by a foreign buyer for a home in Palm Beach. The buyer shelled out $140M in cash for a gargantuan 20,000+ square foot lot in Palm Beach. The sale made history as Florida’s most expensive home.
It will be possible to see the real estate bubble in South Florida as mostly circumstantial in certain ways, which traditionally has caused anxiety because conditions shift, particularly in highly fluid real estate markets such as Miami. Thanks to options like Florida hard money lending, the buying boom may continue well into 2021.