ARE WE IN A REAL ESTATE BUBBLE?
Today's residential real estate market looks a lot like 2006 right before the bubble burst. However, this time mortgages are harder to get, down payments are higher, and there is a low supply. So don't worry there are no signs of a bubble.

Back in 2006, when sales were rising, the market was totally different from what we are facing right now. Firstly, buyers back then were accessing mortgages with a small (or sometimes no) down payment. Nowadays a lot of buyers are putting 50% down or more.
Back in 2008, the high resale supply combined with new constructions plus homeowners defaulting on their mortgage payments caused lenders to suffer losses which caused a financial crisis. Nowadays, buyers have stronger credits, loans are harder to get, and higher down payments are requested.
In 2020, sales have gotten to the highest level in 14 years, but there is a low risk of suffering a crisis like the one of the mid-2000.
It is indeed harder to buy a property nowadays, but this is the price to pay to avoid a financial crisis. Nevertheless, since lockdown restrictions started to be lifted, sales surged ! Nationwide sales increased by 21% month-to-month in June last year, which has been the biggest sales variation since 1968.
This market shows trends that are here to stay, even after Covid-19 related sales disappear. Some of these market trends are:
Even if the market is expected to keep up this year, it is also projected to decrease its acceleration. The plunging inventory and the uncertainty of what will happen after the vaccination process might create a deceleration.
WORLD'S 1st FLOATING CITY TO BE BUILT IN MIAMI
What an awesome project ! Ultra-luxury real estate keeps on evolving and a brand new concept has been developed. Private Islands have been the playground for high-income earners for a while now, but this innovative idea has created a better option by building a floating city between the Bahamas and only one hour and a half from Miami.
With expected completion in 2025, this project has been a total success so far, which has raised $28.4 million already. Properties range from $19,800 for a studio up to $1 billion mansions.
Named The Blue State, this project offers a safe environment with protection from even the most adverse weather. Due to its enormous size of 4,921 feet by 3,280 feet, this artificial island provides extreme stability so no risk of motion sickness. It also offers a private clinic and an international school.
ARE NEW YORKERS STAYING FOREVER IN MIAMI?
Everyone who is in Miami (and even the ones who are not here) have noticed that New Yorkers have invaded our little town. Impossible to get a restaurant reservation, huge traffic, rentals prices on the rise....
However, the wealthy New Yorkers that came to Florida due to the pandemic, are now devising a comeback.
Palm Beach real estate is booming, Miami's real estate is not lagging behind, private schools are almost at full capacity, and the New York elite is enjoying the Sunshine State's winter season as never before! However, only a small portion of these Manhattanites have moved permanently to Florida. According to U.S. Postal Service data, only 9% of the out-of-state moves were from Manhattan to Miami Dade and Palm Beach, up from 6% in 2019. It is not as big of a difference as we all imagined.
The preferred cities to relocate this past year for the top elite living in Manhattan were Jersey City, Los Angeles, Philadelphia, and Chicago.
New Yorker high-income families who decided to relocate to Florida are finding themselves in a difficult situation where private schools are close to full capacity and there are already waitlists for some classes. There is also a pile of young professionals to fill out first entry jobs.
As the vaccination process successfully develops and New York starts to reopen, the high-income earners are deciding if it is worth leaving the town which made them successful.
MIAMI'S OPENINGS: UCHI AND SERENA ROOFTOP
NEW EATERIES ALERT! We are only 4 months into 2021, but things continue to look better than last year. I'm not only talking about Miami real estate, but also about the local food scene. Miami is seeing a slew of new openings that should give us all a reason to smile!
This month I wanted to give you my 2 recently-opened restaurant recommendations in Miami.
DEAL OF THE MONTH: ICON BRICKELL TOWER I #5505