Affluent buyers are the white knights who have stepped in to save Miami’s market. They are buying deals at 53% to 50% off the highest price of the property before the housing bubble burst.
Miami is America’s real estate default capital. 20% of all homes are in default, or have been foreclosed upon and sit empty.
Comparing to 2010, sales rose 16% in the first six months of 2011. Sales in the $2,000,000 and above range are on the rise as prices are rising.
Many of these homebuyers are Chinese or Brazilian. They are not able to negotiate and the prices are clear.
They are able to take advantage of the weak dollar exchange rate.