The Competitive Real Estate Market in Miami, FL

Miami has in no doubt been affected by the pandemic for the last two years. The same can especially be said about the real estate market. The dramatic decrease in buyers during the beginning of the pandemic has caused long-term implications. What is now occurring is a sudden increase in buyers, but a decrease in properties to buy. This in turn has led to a highly competitive market in the biggest city in Florida.

Miami, host to one of the biggest real estate markets in the country, has become victim to lower property counts but a massive increase in buyers. This, unfortunately, has the expected effect:  low supply, high demand. As a result, prices have soared. Despite all of this, closings have increased tremendously from last year. Miami Beach has had almost four times as many closings as it did last year. However, supply is down as there is currently only around four and a half months’ worth of active listings. In comparison, there was almost ten months’ worth in the beginning of the year and around thirty-eight last year. Clearly there is a shortage of properties but that is not stopping price increases and the number of buyers that want to take advantage before anything drastic happens.

Miami has become one of the most sought out places to work now that the option to work remotely is available and lockdown has been easing, however this could all change if the recent increase in COVID cases continues.

Let CMC Group help find your luxury residence by contacting us today!

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Miami Real Estate Continues To Surge

2021 so far has been a turbulent year as COVID continues and people are still uncertain when it will all end. Despite being more than a year into the pandemic, some areas such as the housing market are bouncing back. This is especially apparent in the Miami real estate scene. Increasing supply accompanied by very increasing demand is creating a highly competitive market, even in the wake of COVID. This surge can be attributed to a number of different components.

For starters, potential sellers are getting more comfortable with the idea of selling their homes during the pandemic. Although nerve-racking at first, both parties have found just how easy it is to complete the transaction. Sellers are feeling more confident in making big financial decisions now that businesses and vaccine availability is on the rise.

The economy is starting to bounce back so more listings are being created. A new wave of buyers is starting to arrive which means more people are confident with making big purchases in today’s market. Numbers have already shown that more money is being poured into listings everywhere, especially Miami.

However, as a result of the huge influx of listings and potential buyers, prices have considerably increased. Compared to last year, more houses and properties have been sold, but the prices have increased. This may have negative consequences on the housing market as buyers may be less enthusiastic about purchasing properties which can therefore throw off the balance of an already delicate market.

CMC Group offers luxury real estate all over Miami and is eagerly awaiting your inquiry! Contact us today!

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Luxury vs. Everyday Residential: How Do They Compare in Real Estate

Houses, apartments, and other properties rely on real estate agents to showcase them for potential buyers. Luxury and everyday residential real estate both have the same goal of housing people in the market to buy a home, but they are very different with what they advertise and provide.

Space

Space is a huge difference between the two with luxury providing more space and more amenities than residential typically. The rooms tend to be bigger in not only space, but height as well.

Prices

Everyday residential tends to be cheaper in price than luxury with what it provides. This leads to having more investors and buyers as the competition is higher as opposed to luxury with less investors but more exclusive clientele.

Location

Desirable locations tend to be in less populated areas, accompanied by more upscale living standards and certain attractions or businesses being close by. Residential is more flexible with locations as they can show up anywhere in suburban or urban areas.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Covid: How It Has Affected Residential and Commercial Real Estate

Covid has affected the economy in ways that no one could have predicted. The way things work has changed, especially in real estate. The market was hit hard in some places but turned out to be more resilient in others. Here’s how Covid has affected both residential and commercial real estate:

Commercial

Commercial selling has been found to be more versatile than expected. During the beginning of the pandemic, listings went down as most people stayed home, but as things started to open up again, the need for social interaction and being on-site grew. The demand for commercial listings increased as a result, with investors largely not dropping out at all, but particular things buyers and investors were looking for in those places changed. Now they are looking for listings that can accommodate social distancing, air circulation, and other pandemic musts. In addition, listings for specific needs like storage, pharmacies, and other stores have gone up. The buyer’s demands have changed and so has commercial real estate with it.

Residential

Residential real estate has been greatly affected by the pandemic in comparison. During 2020, the demand for residential listings plummeted and no one was buying properties. This created a pause in the market as no one wanted to spend anything big as the future was still uncertain. However, 2021 has seen a return to more demand from potential buyers, and unfortunately, supply could not keep up with demand. There is more competition in the market than before so prices have increased significantly. Since 2020 saw prices on houses freeze, 2021 now has increased prices coming back in full swing. This issue along with fewer listings has created a highly competitive market in real estate and one can only hope that supply can increase from here.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Design: What Styles are Popular in Luxury Residences Right Now

Luxury residences are special in their own way. Not because of the price spent to acquire it, but because of the living space itself. Luxury apartments, condos, and homes all have special care put into each detail to achieve a living space thousands of investors and potential buyers want. Over time, the trending interior styles of luxury homes have changed to fit with both the times and the clientele. Take a look at some popular styles for luxury residences trending right now:

Quiet Design

This particular style, known as “quiet design,” is a style which specializes in creating a calm and simple atmosphere for those who want to wind down or relax from the day’s events. This consists of having furniture with simplified shapes, nature-inspired color palettes, natural materials, and soft, organic curves. Ironically, luxury items are kept to a minimum and are only used sparingly.

Nature

With the added time inside these days comes the need to create a space which has an outdoor aesthetic to it. More and more people are starting to bring the outside in by using more nature-inspired color schemes, more natural fabrics and botanical prints. These styles are usually, if not always, accompanied by house plants or other components of nature for decoration.

Gallery

Wall art takes center stage for gallery styles as this particular style revolves around making art pieces more noticeable. Acquiring a gallery-like style means quite literally turning a living space into a showcase for art. Sought-after pieces of art to feature in the home have changed over time with this style as owners and designers tend to now lean more towards art that adds depth and texture, color, and even scenery to rooms.

CMC Group, based in Miami, is one of the best luxury developers in the city! Visit us online or call at 305.372.0550 today!

Residential and Commercial Real Estate: The Impact of the Pandemic

Residential and commercial real estate have been deeply affected by COVID-19. Both the market and the people who participate in it have proven to be versatile and resilient in these hard times.

Commercial

Commercial real estate, despite having been on pause for 2020, has made a comeback. Demand has gone back up as lockdowns are lifted and people want to be in a physical office now more than ever. Buyers changed what they desire in listings such as air circulation and open space for social distancing, and the market had to adjust accordingly. 

Residential

The residential market, like commercial, froze in place during the opening months of the pandemic. Presently, however, there is an issue of high demand and low supply as the market struggles to keep up with an increasingly competitive clientele. Prices have also gone up compared to last year as there were no changes in numbers in 2020.

Overall, the impact of the pandemic has brought many opportunities for investors leading to a saturation of the market.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Growing Population: How It Impacts Real Estate

As the population continues to grow in the United States, so does the real estate market. With more people in need of homes, real estate must adjust to the fluctuations in population in order to meet the high demand. During 2020, Miami had experienced an influx of people traveling to and around the city in hopes of enjoying quarantine protocols in warmer weather. According to Forbes, the real estate market in southern Florida was in “Super-Boom” mode. However, with this growth comes challenges to real estate agents and investors, for they must keep up with the high demand.

How fast are we growing?

According to the U.S Census Bureau, the United States has a population of approximately 330.2 million citizens, in which the number has been on a steady incline since 1920. For Miami in particular, 2.7 million people reside in Miami-Dade, and more are looking to move for retirement or other reasons.

What does this mean for real estate?

A growing population puts pressure on all sectors of the economy. Because the population in Miami is growing, economies must match that growth to prevent falling behind. When the demand for houses increases, so will the prices of homes. Additionally, an overall growing population can cause a shift in demographic populations, changing the demands put in place for certain groups of people. The need for single-family homes is at an all-time high in Miami-Dade, causing price increases for those looking to buy.

Overall, the Miami real estate market will follow the demand of the citizens. This also includes a need for roles such as developers, landlords, and financial institutions.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Future of Real Estate: Post COVID

Like many other markets, COVID-19 had a noticeable impact on the real estate market. With stay-at-home orders put in place, potential buyers were forced to halt their search, causing a significant drop in home sales. April and May 2020 in particular saw the largest drop, which was the lowest level since the 2008 financial crisis. COVID will forever change the way the world operates, but a brighter future is in store for the real estate market. In Miami, the real estate market has experienced a boom in sales post-COVID, for Miami quickly became a desired destination. Here are a few reasons why:

Outdoor Space

Because of the stay-at-home orders in place, people have been spending more time outdoors. Recently, there has been a demand for homes with outdoor amenities, such as a patio, gazebo, swimming pool, cabanas, etc.

Demand for Second Homes

In 2020, people were unable to travel to their favorite vacation destinations. In order to stay within social distancing guidelines and other precautions, the demand for second homes has risen significantly, for households have been purchasing these vacation homes to get away without the fear of COVID.

Migration from cities to suburbs

COVID-19 has caused many people to move out of cities into their own space. In particular, people in their 30s and 40s, causing the younger generation to have a majority population in the suburbs. As people are looking to settle down and escape COVID-19, this shift has caused a high demand in suburban homes.

Developments in Miami have allowed buyers to make purchases during COVID, ranging from home buyers and businesses to investors. The real estate market is headed in the right direction, and with new trends, the demand for homes is still at a high.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

And Then There Was One: The 62nd-floor Penthouse

The future looks bright for the Miami luxury real estate market despite the economic decline in the US due to the COVID-19 pandemic. The Brickell Flatiron, the latest project by luxury real estate developer Ugo Colombo, had $31.62 million in real estate sales since March. In fact, since the opening of this building, 98 percent of the units have been sold. However, there is one beauty that since remains unclaimed at the Brickell Flatiron and it can be found on the 62nd floor.

Penthouse Details

The last remaining penthouse at the Brickell Flatiron is on the market for $9 million. This unit is a two-story, 4,663-square-foot beauty. It comes fully furnished with four bedrooms and five and a half bathrooms. The penthouse features terraces that extended from each exterior room and gorgeous, vast views of Biscayne Bay and downtown Miami. Created by Spanish architect Alexis Cogul Lleonart, this penthouse was beautifully designed to compliment the gorgeous views this unit offers. With vibrant color choices, contrasting materials, and fluid lines, this unique design is sure to capture the attention of all who enter.

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

Miami Luxury Real Estate Stays Hot During a Pandemic

COVID-19 has made many things uncertain, but one thing that remains clear is the increasing demand for luxury real estate in Miami. Even amidst a pandemic, the Brickell Flatiron (Ugo Colombo’s latest project), closed on a whopping $31.62 million in sales since March. As the US economy continues to drop, Miami’s luxury real estate continues to rise, and the Brickell Flatiron sales are proof of this fact.

Details on the Brickell Flatiron Sales

The Brickell Flatiron project first broke ground in early 2017 and finally opened late 2019. Since its opening the 64-story, 527-unit has sold 98 percent of its units which is equivalent to 516 units. In the last three months, four of the five penthouse units were sold and four more have gone under contract. The four units that have gone under contract since March have all gone to contract at asking price. The smallest unit of the four units under contract is a 900 square-foot one-bedroom, one-bathroom that went for $450,000. The largest is a 2,200 square-foot three-bedroom, three-and-a-half-bathroom condo that went for $1.88 million. There is one penthouse that remains available at the Brickell Flatiron and the asking price is $9 million. If the past three months are any indicator of what the future holds for Miami luxury real estate sales, that penthouse won’t be available for long!

Learn more about Italian-born real estate developer Ugo Colombo, President of CMC Group.