Partner Ivan and Mike Team
ONE Sotheby’s International Realty
So, Real Estate in Miami I would say it’s a 95% stand step, things that were already in the pipeline, things that were already in motion, those businesses are closing. So if you get an email from your realtor like “Just Sold”, those deals were in the pipeline before. I don’t think we are fooling anybody that things are steaming along over here in Miami with Real Estate, and I don’t think they pretty much are anywhere in the world right now.
And that makes sense. As an investor myself I’m putting that (investment) on hold for the moment. To put a 20% investment on a piece of property when I don’t quite know what is going on doesn’t seem like the right thing to do right now.
I think there will be a moment of opportunity just like the stock market, but nobody has a crystal ball. We don’t know if we are at the bottom of the “stock market”, we do know that there was a huge dip, and for people who bought on that dip they might be seeing some danger right now.
So I think it’s going to be very similar here in the Miami Real Estate Market. I also think there will be a window of opportunity, and you are going to see discounts that go anywhere from 15% to 20%. Perhaps if this goes longer, if we continue in this roller-coaster of Covid-19 where we get quarantined, and then released and then quarantined again, I think that is going to elongate things. You might see discounts in certain buildings in some areas that have a little bit more supply. You might see discounts up to 30%.
Everything is hyper-local and whenever I am talking to clients and friends I tell them that is the most hyper-local market out there. Miami you have South Beach, Bal Harbour, Surfside, Sunny Isles; even in South Beach you have these micro-markets like Sunset Harbour, South Of Fifth, Venetian Islands, Coconut Grove. So what happens will depend a lot on how things go with Covid-19, if things go roller-coaster and the behavior of specific markets. The Miami Riviera from South Beach to Bal Harbour always seem to stand tall during the tough times.
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