For the sixth consecutive month, Miami home prices again posted strong gains in May. The median sales price of condominiums in Miami-Dade County increased 22 percent to $151,000 compared to a year earlier, according to the 25,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose six percent to $190,000.

“Miami home prices have experienced double-digit appreciation consistently over the last six months,” said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. “Strong demand for Miami properties continues to fuel this dramatic market strengthening that has yielded limited supply and will result in home prices increasing further.”

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The Brickell rental market, said Rita Regev, broker-associate at Optimar International Realty, “is stronger than ever. Inventory is low, and the better units get snapped up very quickly, usually for asking price. “It’s no longer just students and young professionals. The area is appealing to the 30s through 50s age group as well.”

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I believe the Miami real estate market is strong and getting stronger in the residential rental market where we are beginning to see price increases as the available inventory is at low levels. The commercial office sector is ready to follow the residential rental market, and the demand is strong for retail, but soft in warehouse/industrial sector. Areas of the city will differ, Brickell is booming and Mid Town is getting much stronger and Sunny Isles and Aventura are set for take off.

What is the climate for development like?
We have just finished absorbing the available inventory. I would hold off on new development for two to three years away for rentals; longer for condos and new office buildings.

What are the best opportunities for development?
Multi family rental properties and smart adaption to new uses of well situated properties.

What is the most overrated part of the Miami market?
Right now no part of Miami is overrated. The converse applies there are plenty of underrated sections all over the city.

What are your biggest concerns about the market?
The participation of banks and the availability of financing. Fortunately I work with great professionals and we can arrange very favorable financing.

What is the most surprising thing about the Miami market right now?
How quickly it has come back. We have great attributes and smart buyers, especially from Latin American and Israel, have made significant purchase seeing value where others were hesitant. So it is the resiliency of the city that surprises me. While Miami has many issues it has become a dynamic international city of growth not just a gateway to Latin America but to Europe and Israel.

Many new condo and mixed use projects (residential with retail shops in buildings) that were put on hold in the last few years are now available at very attractive prices. South Florida real estate is continuing through its anticipated cycle and now that the fallout resulting in epidemic foreclosures and short sales is coming to a close, opportunities are ripe to purchase properties that now have the proper ‘pedigree’.

Also, many of the buildings completed in 2005-2007, that suffered from the market downturn, have been restructured  and are reentering the market as improved, expertly managed properties ensuring sustainability. In essence, condo projects from Ft. Lauderdale to Miami Beach & Downtown Miami  that faced foreclosure, were sold to developers  that have  proven  experience, foresight and integrity.

Now these once forsaken buildings are being sold at extremely attractive prices, and the buildings have stability with reasonable maintenance fees and RESERVE FUNDS. The whole look, feel and vibe of South Florida real estate is, FRESH!

In commercial investment, multi-family properties of 5 units or more are a wise long term investment. Purchasing”right” is the key. Properties must be carefully analyzed and assessed long before offers are made. My team researches each property thoroughly and follows through on every detail of the transaction. As I always say in guiding my buyers, “the real work begins after the contract is signed”. That is when I go to work to ensure a smooth and seamless transaction. I oversee the inspection, appraisal, financing process, and anticipated repairs and renovations.

Purchasing “right” – the buildings that follow the criteria- are easily managed and for a cash on cash buy, there are CAP (Capitalization) rates of 9-11%, significantly higher than in many domestic and overseas markets. An investor can easily be an absentee owner and enjoy the monthly income of producing properties.

What are your biggest concerns about the market?
Oftentimes, banks can be unreliable and difficult to deal with, especially in short sale transactions. Fortunately, I work with great professionals that can cut through the bureaucracy and see the transactions through to fruition.

What is most surprising about the Miami market right now?
Surprisingly, the market has come back rapidly. Seasoned and well-informed buyers– an absolute international array- have made significant purchases based on value. It is the resiliency of the city and buyers’ lack of hesitance to sign off on a great opportunity that is very encouraging.
Buyers are committing with confidence.