Reasons Miami’s real estate market will thrive in 2017
If you pay close attention to some of the top experts, brokers and developers in Miami, there’s one common outlook: Miami real estate continues to flourish despite reports of a slowdown. Most consider real estate a cyclical industry highly affected by demand and supply that follows global economic and employment cycles. In that case, Miami’s developing infrastructure, job and population growth (a 150 percent growth since 2000, driving income levels up), strong economy, year-round tourism and international investors, among many other factors, play a role in the overall success of its real estate sector.
In the last few years the city has benefited from a record breaking sales market boosted by a complete revitalization and transformation of some of the most in-demand areas throughout the city. Even more defining, Florida Realtors reported that the state’s housing market had more closed sales, higher median prices, and more new listings, despite fewer all-cash sales this year.
A report by the Miami Association of Realtors (MAR), also disclosed that the markets distressed sales declined 39.9 percent year over year from August 2015 to August 2016. As the population of the Miami grows, the new residents and investors need places to live, work, eat, shop and play, which constantly increases the amount of space needed, thus boosting supply, evident by the number of current projects planned or now under development in many top areas.
Here’s a list of the positive side of everything good with the Miami real estate market according to compiled news reports:
LOW INTEREST RATES: Buyers and investors have significantly more purchasing power than they did in the past due to historically low rates.
MIAMI REAL ESTATE IS UNDERVALUED: Compared to major metropolitan markets, according to the Wealth Report by Knight Frank, Miami’s price per square feet is well under cities with living area such as New York, Los Angeles,
BUILT-UP DEMAND EXISTS: Could buyers be playing the waiting game, holding off on buying for a price drop? Many realtors believe so. The chance to negotiate a great deal when inventory increases is appealing to some, which translates in to spending power for buyers.
LOW INVENTORY FOR INVESTORS: Many new and planned projects are in the pipeline, which means inventory will rise, but not be as substantial as previous cycles, this will more than likely create a competitive market for prime properties.
INTERNATIONAL BUYERS STILL SEEK OPPORTUNITIES: With more international service routes added to MIA and FLL airports, such as Abu Dhabi, Tel Aviv, and many European countries, a steady stream of new investors are making up for the slowed Latin American interest, which still exists at the higher end of the market.
PRICE DROPS: Price correction enables sellers to price their homes and condos “close to the market” to attract more interest and produce more sales.
NEGOITABILITY: A Buyers market is a time when those investors or homeowners purchasing a home or condo have a considerable upper hand in negotiating to close a sale. It’s a great time to buy across the board.
YEAR-ROUND SALES CONTINUE: Seasonal and non-seasonal sales continue, and the best time to buy in this Miami market could be; anytime. Year round sales for new projects and inventory with negotiable prices make it easier for sellers and buyers get exactly what they want.
MIAMI: WHATS NOT TO LOVE: One of the most highly demanded destinations for international investors, visitors and tourists, Miami is the place for people to escape the cold, economic downturns in other nations, to vacation in their second-home or simply move to live, work and shop. The city has been emerging as a world class global city attracting a lot of attention worldwide.