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Miami was one of the hardest hit cities in America by the recession of 2008, but recently, many real estate experts have reported optimistic signs of the bottoming out of the residential real estate in Miami Beach. However, real estate experts are still extremely worried about the struggling commercial real estate in Miami due to high vacancy rates and the threat of another wave of foreclosures coming. The luxury home market also continues to struggle as prospective homebuyers are only gobbling up the “bargain” priced properties, especially with the local government offering incentives for those who purchased distressed properties. Although median prices are still well below previous years’ levels, it seems that the Miami Beach real estate market is beginning to make a comeback as it gains more momentum with increasing numbers of sales.

According to the Miami Herald, many realtors are beginning to see signs of life returning to the Miami real estate market. As real estate markets throughout South Florida post strong gains, most realtors note that most of these gains are only in the lower priced housing range, about $300,000 or less. Houses selling for less than $100,000 are even starting bidding wars and often selling for more than their list prices. However, median home prices continue to remain below last year’s averages. In October, the median price for Miami real estate was $178,500, down 28 percent from the previous year. Sales of single-family homes increased by 26 percent from a year ago, and condo sales in Miami increased by 47 percent from a year ago. However, homes and condos in the luxury market continue to struggle to find sales.

The South Florida Business Journal reported that despite recent improvements in the residential real estate in Miami, commercial real estate continues to struggle. As of June 2009, commercial real estate sales dropped 77 percent compared to that of the previous year. What’s worse is that many experts believe that another wave of foreclosures in the commercial real estate market is near, even though lenders have postponed that from happening due to inclinations to restructure loans rather than foreclose. Although the residential real estate in Miami is improving, many experts believe that the region is still a ways away from a full recovery of the Miami real estate market.