DESPITE A REAL ESTATE DOWN TURN, THE MARKET IS STILL STRONG AND LATENT
• A PRICE CORRECTION IN THE MARKET IS NOT TO BE FEARED
• ANNUAL NAR CONFERENCE OFFERS KEY INSIGHTS TO THE MARKET
Miami, FL. November 13, 2006 – While former Presidents George H. W. Bush and
Bill Clinton focused heavily on the rebuilding of New Orleans during the
National Association of Realtor’s Annual Conference this weekend, NAR Chief
Economist David Lereah focused on the current market scenario, commenting that,
"a price correction is not something we should fear as buyers who had been on
the cusp of affording a home will have the opportunity to jump into the market".
Despite an alleged downturn in the real estate market, the reality is that it
is still latent and strong. Actually, today’s market conditions are idyllic for
buyers, allowing them to select from a broader array of property choices at
better prices, and still benefit from low interest rates.
"These are perfect conditions for the buyers," said Tom Stevens, President of
the National Association of Realtors.
Experts who have lived and worked through past market shifts guarantee that
the real estate market is stabilizing.
Among the experts who understand the present situation in the South Florida
real estate market is the President and CEO of Domus One Development Group, Alex
Jiménez-Ness. "Despite media reports of a real estate market slow-down, this is
a great time to invest in South Florida," assured Jiménez – Ness. "This might be
explained by the fact that in terms of home price appreciation, Florida is the
second largest after Arizona."
During the past three years alone, house prices rose 92% in Miami and Fort
Lauderdale. Among the top 20 cities, house values rose 79% while the nation
averaged 32%. A house in southeastern Florida worth $145,000 in 2000 went up to
$371,600 five years later. "Today, the buyer can buy a property for what it is
really worth," Jiménez-Ness concluded.
Close to 5,000 units, nearing end of construction, have been sold within 2006
while another 3,000 units will be developed in 2007. Even with the perception of
the slow-down in the real estate market, investors will still continue to flock
to the area and invest in real estate, one of the pillars in the local economy.
"There is a huge demand as a result of the 350,000 people that migrated to
Florida in the past year," added Jiménez-Ness. "This movement, which is not
likely to cease, sparks a market dynamic that, notwithstanding, will get
stronger within the powerhouse that is Miami."
Miami is a very trendy city, and as such international jetsetters have turned
the city into the place to be. Among the many current trends, there is one that
is catching everyone’s attention. "It is evident that high-end home buyers are
investing in revitalizing neighborhoods like North Bay Village, a series of
waterfront islands that gained reputation of a winter paradise and a popular hot
spot for restaurants and nightclubs that were frequented by celebrities such as
Frank Sinatra and Judy Garland in the fifties."
Given these figures, experts say the market won't collapse at all; prices
will just cool off a bit.
About Domus One Development Group
Domus One Development Group is an international development firm, which
together with its principals, has an impressive and well diversified portfolio
of exceptional projects, mainly in Europe and Latin America. From high-end
residential homes in Spain to recreational resorts in Venezuela, Domus One
Development Group brings its unparalleled passion for building quality and value
to the United States real estate market.
For more information about Domus One Development Group and its recent project
Eloquence on the Bay, please check www.eloquencecondo.com