Lifestyle

Tag: miami housing market

  • Current State of Miami’s Real Estate Market

    Current State of Miami’s Real Estate Market

    The Florida real estate market is constantly evolving, and it can be difficult for people without a real estate background to keep up with the changes. The past year has shown that the Miami housing market has softened, but real estate professionals in the area are confident that the Miami real estate bubble is not about to pop. Some of the factors affecting the current market include:

    Foreign Buyers and Investors

    Miami is a sophisticated international city, and people from around the world have been flocking to the area to invest in condos and single family homes for the past several years. Foreign buyers were particularly active in the Miami luxury real estate market; in 2015 real estate professionals said that over 50% of luxury buyers were foreign, while in 2016 that figure dropped to 33%.

    This drop in foreign buyers can be explained by economics and the foreign exchange rate. Latin American investors played a big role in driving the Miami real estate market, especially luxury properties, but major countries such as Brazil, Argentina, Columbia, and Venezuela are currently in a recession and the exchange rate in those countries has decreased by 25-40% compared to the U.S. dollar.

    Foreign buyers have not disappeared from the Miami real estate market, but their numbers are expected to be lower than normal until economic conditions improve in other countries. This has created new opportunities for local buyers and domestic out-of-town buyers.

    Domestic Buyers

    While the number of foreign buyers in the Miami area has declined this year due to economic conditions, there has been an uptick in the number of domestic buyers investing in Miami real estate. A Miami real estate market analysis shows that the number of local buyers has increased from 11% of total buyers in 2015 to 23% in 2016. American out-of-town buyers, particularly New Yorkers, have also risen in Miami from 16% in 2015 to 20% in 2016.

    The shift in buyer demographics has slightly altered the real estate environment in Miami. When foreign buyers were dominating the market, many real estate transactions were cash deals as international investors purchased luxury condos as an investment or a vacation home. Foreign buyers focused more on building amenities, nightlife, dining and shopping when choosing where to buy.

    As more local buyers are emerging in the Miami market, buyer interests are changing. Buyers are focused more on qualities such as quality school districts, commutes, and access to retail stores and activities since most local buyers plan to live in their new home year round.

    Luxury properties, particularly condos, are still in demand with out-of-town domestic buyers. Miami’s thriving Financial District, Florida’s favorable tax laws, and the beautiful climate makes Miami a highly desirable place for domestic investors or people wanting to relocate.

    Future Outlook

    The Miami real estate market may have slowed over the past year compared to years past, but it is not expected to remain this way, and prominent Miami real estate professionals do not expect any type of market collapse. In fact, figures show that there could be a sharp upswing in Miami’s real estate market in about 18 months.

    If you are interested in investing in Miami real estate, now is the perfect time to do so. Whether you would like to purchase a condo as an investment or vacation home, or are looking for a single family home, the favorable conditions for buyers are not expected to last long. Take advantage of the current inventory levels, prices, and interest rates now for the best values before the tide shifts back to a seller’s market.

  • How Brexit Could Affect the Real Estate Market in Miami

    How Brexit Could Affect the Real Estate Market in Miami

    The world shook last month when the U.K. voted to leave the European Union. Its affects on the countries involved and remaining globe were somewhat muddled, but they continue to surface with prominence in a vast array of market contributions.

    Rather indirectly, the Miami housing market is affected. London ranks amongst the top in global real estate, and its departure from the EU saw whiplash in property prices, plunging severely. This means that Miami moves up in the global rankings, and continues to become an even more attractive international location in which to purchase.

    A more attractive purchase destination should attract more foreign investors. Right now, Miami has the most stable real estate market in the country, which makes it the easy choice for buyers leaving London and the U.K. for new opportunities.

    It’s too unpredictable to claim that London will fall to instability, but the unknowns surrounding the departure from the EU leaves too much up in the air for investors. It’s no longer a safe market, and Miami beams with security and stability. Already, there’s a project, Miami Worldcenter, set to be completed 2018. It’s already attracted investor-buyers from 35 different countries.

    Investors from all over the world have sought Miami property for years. Some of its most appealing attributes are its favorable weather, international access location, buzzing lifestyle, global business market and multicultural family affinity. Traditionally, the Florida Realtors Association saw annual climbs in real estate values of four to 10 percent. Most recently, the value increases tipped into the teens. Even with these increases, the Miami real estate market still offers some of the most affordable options amongst the world’s top cities.

    So what does this mean for the rest of Miami and south Florida? Experts predict an influx of foreign investors, bringing international, well-educated, wealthy people to the area. Property purchases will be amongst top activity, but we’ll also see the establishment of new businesses, creating jobs for locals and immigrants alike, which will be increasingly important for the population increase in downtown Miami.

    Only time will tell the validity of Miami’s upcoming housing market boom, and we’re curious to see how the change unfolds. VIAC will be there every step of the way, so tune in for the latest on Brexit and, as always, all things Miami real estate.