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There are two factors that are contributing to the growing optimism about the real estate market in Miami. One, affluent buyers are prepared to spend a lot of money to purchase property in the city. This is a trend that has it changed in the recent past and is contributing a lot to the optimism. The fact that people are ready to buy property is always considered a sign of economic recovery.
However, it must be noted that those purchasing the property are not really interested in residing in the same. It is not a proper real estate transaction. Rather, it is an investment where rich people are anticipating rise in demand for homes and are trying to buy early. There is a possibility that this may result in yet another bubble.
Another factor that has contributed to the optimism is that foreclosures and prosecutions have slowed down. The administration is working at its top speed to cut a deal with lenders to prevent people from losing their homes due to non repayment of the loan. If the attempts fail, foreclosures will start afresh. However, there is genuine hope that the deal will be struck and this will prevent the foreclosures from beginning again.
In such a scenario, supply of property available for purchase has dried up. This is contributing to the increase in prices as demand continues to remain high. This recovery may not last for long but is a welcome sight as compared to the horror stories that people encountered when the real estate bubble burst.







