Miami-Dade County's property values have risen for the second year in a row. This is good news for South Florida municipalities, which receive much of their revenue from property taxes. The growth has been about 3.1 percent throughout the county and was a tad less than Miami-Dade Mayor Carlos Gimenez anticipated. Just last month, Gimenez predicted property values would increase by 3.5 percent, thus creating $33.3 million more in new revenue for the county. It's good to see that the negative growth has stopped and something positive is happening. According to initial estimates, Miami-Dades tax roll grew to $196.61 billion from $190.69 billion last year. Real estate luxury property values grew by 2.5 percent. Luxury oceanfront and properties in the Miami's urban-core were the most likely to see their luxury real estate values rise. Those and luxury residential condominiums. Meanwhile commercial properties were flat. Luxury Miami property values are rising across the board, in part due to hedge funds that are eager to invest in real estate.
The final real estate tax rolls will not be certified until next month. This means that the figures announced Friday are subject to change. Even so, the preliminary numbers will help taxing authorities to start preparing their budgets and setting their tax rates. South Florida municipalities and school districts have been scrambling to balance their budgets since 2007. Some made drastic cuts to programs and services, while others negotiated employee concessions or forced layoffs.
Luxury real estate values in Miami-Dade and Broward started to rebound last year, showing small growth over the year before. This year, the growth is even stronger. And now for a recount of the winners and the losers in Miami-Dade county. The strongest increase occurred in the small island community of Indian Creek, just to the west of Surfside. Other communities that did okay were Sunny Isles Beach, Bal Harbour, Golden Beach and Surfside. On the negative side sits Florida City, who slid 6.6 percent to $410 million from $439 million. Opa-locka was another loser whose property values fell 5.6 percent. Although the rebound is mainly neighborhood specific, due to the low luxury real estate inventory, very few luxury homes are still decreasing in value.
Is the real estate growth is sustainable? How long will it last? Some say the prices will increase for the next three to five years before interest rates sky rocket. When that happens and the hedge funds begin to sell off their luxury investment properties, we may have another real estate bubble.
All city officials care about now is the official start of the budget season. Miami saw their property values jump 4.1 percent to $32.6 billion from $31.3 billion. Which is more than city budget managers were expecting. In Homestead, property values dipped to $1.795 billion from $1.8 billion. The Miami-Dade County mayor, said he believed the countywide figure should have gone up in the past five months based on estimate of January figures.
Everyone is predicting that next year will be a better year for real estate. but they are happy with where they are at.
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Andres Leiser is a local contributor for Constec Realty's Miami luxury real estate website. Andres Leiser has been involved in Miami real estate for over a decade.For more information please visit www.constecrealty.com
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