With financing time consuming and difficult to obtain, we are beginning to see a new wave of buyers for Miami Beach real estate
properties. Sellers are anxious to move their Miami Beach homes fast and buyers with cash in hand are eager to move on good deals. These new cash buyers are Europeans with access to easily available funds and ready for quick deals on high-end Miami Beach real estate properties and luxury Miami Beach homes.
Peter Zalewski, founder of Condo Vultures said, "With the state of the market being what it is, it's typically a 30- to 60-day process for financing. 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."
One Miami Beach real estate agent
said they have gone almost two years without buyers making a financed deal. Most of these buyers are looking for second or third homes so federal financing and tax credits are not an option for them, just cash.
In the past 90 days fifteen Miami Beach homes priced over $2 million have sold and six were priced over $4 million, two of those homes were over $15 million.
This trend doesn’t stop at luxury Miami Beach homes. According to a study done by Condo Vultures, out of the 713 Miami condos
sold at the end of the first quarter, 83 percent were all cash deals. A majority of the most expensive sales for Miami Beach condos in the last quarter and a half were paid for in cash. This includes three sales over $4.2 million at the Apogee and the sale of Penthouse B at The Setai
for $15 million.
Zalewski of Condo Vultures was quoted as sating, "Because everyone wants to be in Miami Beach, all-cash is the way to get in."