Apogee in South Beach

From the South Florida website: A number of recent reports have noted the vibrancy of the tri-county area’s rental market — but it’s not just young professionals in one-bedrooms that are signing residential leases in droves. Miami’s high-end rentals are also booming, led by Miami Beach, which has seen its inventory practically vanish, led by New Yorkers looking to establish residency in South Florida. “There’s just no new inventory,” said realtor Kevin Tomlinson of One Sotheby’s International Realty. [more]

From the South Florida website: Reluctant
banks have led to a new wave of buyers in Miami Beach real estate –
those looking for quick, all-cash deals. With financing not just
difficult to obtain but also time-consuming, sellers are looking to
move their homes faster, and buyers, with cash lining their pockets,
are ready to move on deals. As has been the trend in Miami Beach, the
new all-cash buyers are Europeans armed with easily accessible funds
and are eager for quick deals on higher-end properties. “With the state
of the market being what it is, it’s typically a 30- to 60-day process
for financing,” said Peter Zalewski, founder of Condo Vultures Realty.
“If you want to come in with financing, you’re going to have to put in
a 15 to 20 percent premium. The seller would rather take less money and
move it in 20 days.”

[more]

LeBron James and 28 Harbor Point Drive in Key Biscayne, currently listed for $24.95 million

From the South Florida website: Since before midnight on July 1, rumors have been swirling about the
possibility of Cleveland Cavaliers superstar LeBron James jumping ship from Cleveland
to join Dwyane Wade with the Miami Heat. While Wade has played well
enough to change the county’s name to Miami-Wade County, it’s unlikely
LeBron would tolerate the commute from LeBroward County — so he’d have
to choose from the best homes and condos Miami has to offer. James has been seen looking at homes in New York
recently, and he would find no shortage in Miami. But one idea is to go
with the current trend — and do a superstar-sized bulk deal. “LeBron
is going to sign [an NBA contract] for about $17 million [the maximum
allowable under the NBA's salary cap],” said Condo Vultures Realty
Founder Peter Zalewski. “You can afford about 25 percent of your income
towards annual payments, so theoretically he can afford $4 million a
year in a mortgage — not that he needs one. But if he were to spend a
full year’s salary toward buying a place, I’d recommend that he does a
bulk deal.” Click here for more.

[more]

Prices for Miami real estate have dropped as much as 43 percent from the 2006 peak

From the February issue:
For some Manhattan renters, buying a second home is coming before buying a first. While New York real estate has seen severe discounts (Manhattan prices are down roughly 20 percent from their peak), some New Yorkers are going to real estate markets like Miami or the Hamptons that have been burned by even deeper discounts. In the Hamptons, prices have dropped as much as 30 percent since 2006, said Barbara Weber, managing director of Nest Seekers International in the Hamptons. In Miami they have dropped as much as 43 percent, compared to the city’s historic high in 2006, according to Peter Zalewski, a broker with the Bal Harbour-based Condo Vultures Realty. “You can literally buy five condos in Miami for the price of one in New York,” said Ron Shuffield, president of EWM Realtors in Miami. New Yorkers are also taking advantage of foreclosures and short sales in the Miami-Dade area, said Alfredo Vizcarrondo, president of the AV Group in Doral, a real estate company. “In the last quarter of the year, there [was] increased interest from New Yorkers,” said Vizcarrondo. He said he recently closed on properties in Miami’s Brickell area and in Aventura for prices as low as $160,000.  [more]