“Is Miami experiencing a downturn in the real estate market, or, as experts suggest, is it just “correcting” itself?

Spoiled by a strong sellers’ market, Miami-Dade real estate, in a twist-and-turn situation for the past nine months, has returned to a more balanced state of business. Prices are not falling. Property is selling all over the beach - and in the city and county. While inventory has increased and land dealings have made it more of a buyers’ market, sales have not been stunted. Overall selling conditions have returned to normal, which is a good thing for Miami-Dade, one of the most fascinating and growth-oriented markets in the world. “Sales come a bit slower because we went through a panic situation when properties were not sold in less than a week like they had in recent months,” says Ruth Carrington, a Realtor with Buy the Beach Realty in Miami Beach. “Buyers had been hesitant because they thought they saw the sky falling. But prices are stable, and we are closing property in a brisk manner.” Carrington has seen recent improvement in both the sales pattern and in the attitudes of buyers, who seem to have moved beyond the frozen-in-their tracks period. In fact, she had two closings in one recent week: a $400,000 condo on the beach, and another, higher end, waterfront unit that went for $1 million. “Things have stabilized, and people are remembering that real estate is a long term investment,” says Carrington. “They knew the fast 28-29 percent return on investments that lasted for a couple of years was not going to last. And buyers are happy to be returning to a normal marketplace.”

“It’s pretty simple,” observes Leonard Sondick, an agent with Century 21 in North Miami Beach. “Offer a good-looking product at a reasonable price, and it will not stay on the market very long. Things are picking up and should be great in the next 12 months.” When local buyers or sellers look at real estate around the U.S., they will see how strong it remains as a solid investment, and then realize Miami is a place they want to live, or at least revisit for the rest of their lives. Research has proven that there are no real estate bubbles bursting here or most anywhere else, only balloons that expand and contract because of the region’s healthy economy. More people moved to Florida last year than to any other state. In addition, luxury hotel projects on the beach are booming, with Miami Beach room occupancy rates up to 80-85percent as compared to about 60 percent in other resort areas of the country. Tourists come for fun, they want to stay, or at least buy a second or third home. They don’t really worry about prices or local real estate frustrations because they’re too mesmerized by the climate, the beach, the nightlife and the overall ambiance of this international city situated on prime American soil. With about 2,000 people a month moving to Miami, 50,000 units should be easily absorbed in two years. But not all 2,000 people who move here are rich, so they have to look long and hard for places they can afford. This will not cause any kind of real estate crash. “If there is a city more protected from a crash, it’s this one!”

-- Summary of “Market Madness” by Elena Cornide of MLR Realty