With the constant barrage of bad real estate market news, many have been tirelessly awaiting the day when Miami Beach real estate will return to its former status as a lucrative and highly successful market. As much as we all wish we could grab a crystal ball and precisely pinpoint the day the market woes will end, for the time being we’ll just have to take some kind of comfort and reassurance in the small gains that have been appearing as of late.
Most people recognize these gains as home sales and price stabilization which are certainly welcome but don’t give any kind of indication as to when the South Beach real estate market will finally “bottom out” and turn things around towards a full scale market recovery. While it’s not necessarily the guarantee that the market will be recovering, recent figures and reports show that investors are purchasing distressed properties from banks eager to get rid of them. Investment companies in particular have always maintained large reserves of funds on hand but it’s only recently that they’ve taken the next step towards using those funds (over $20 billion) in purchasing some of these distressed properties carrying unusually low price tags.
Many investors have already purchased multiple distressed properties which certainly go a considerably long way in decreasing the large amount of properties banks are grappling with. It’s just as important to note that even with such welcome news it will likely take some time before the price(s) and value for a Miami Beach Florida condo will receive a welcome boost. This is not the kind of news existing homeowners want to hear but considering that the Miami Beach real estate market is in full buyer mode, perhaps this stagnant period will be short lived now that distressed properties are being bought.