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Miami Real Estate Forecast
According to the Miami Association of Realtors, Miami’s condo sales jumped 24.% and condo dollar volume surged 40.8% year-over-year. Miami home sales in April 2018 jumped 12.9% while single-family home transactions rose 2.1%.
The surge was characterized by sales of condos in the lower price range via all cash transactions. And there’s more good news ahead. George Jalil, a Miami broker is quoted as saying that “Miami condo pending sales are up 13.6 percent, which indicates another strong month of sales on the horizon.” Florida’s economy continues to grow and other markets including Orlando and Tampa are faring well in 2019.
Total Sales Volume up 18%
Total sales volume for all properties catapulted 17.8% , from $1.01 billion to $1.19 billion. Existing condo sales rose almost $155 million to $565.4 million (+40.8%). Stats show as well that there are more condos listed for sale at the end of April.
Hurricane Irma is history and the rebuild has been an economic shot in the arm. And given a strong economy, rising wages, and that Florida’s no tax status is still alive, buyers and investors are finding big value in buying Florida real estate. See the Housing Market in Florida 2018 report.
According to Zillow, the average price of a home in Florida should rise to $221k by end of 2018 and the average price of a detached house will be $230k. Condos are forecasted to rise to $169k on average. Compare these to home prices in Houston, home prices in Los Angeles, home prices in San Francisco, and home prices in Seattle, and you can see homes in Florida are a relative bargain.
It’s believed that high mortgage rates, mortgage financing red tape, and lower access to loans will moderate demand for homes and condos. Howwever, if it is foreign buyers paying full in cash for properties, governments will find it difficult to control price rises. The prediction of higher prices this May and June was right on target.
And with more Americans accumulating wealth and unemployment low, they’ll be thinking about buying a Florida home or a home in San Diego county. Prices in San Diego are very high so Florida seems the smarter choice.
October Sales: Miami existing condo sales increased in October and luxury home transactions posted double-digit gains as Miami real estate returned to normalcy after Hurricane Irma-related tree debris and power outages delayed inspections, appraisals and closings the past two months, according to a PR report from Miami Realtors.
The number of single-family houses listed fell 4.8 % (307 units) in October to 6,152 homes last month. New house listings fell 9.3% and those offered at less thatn $250,00o dropped severely. That spells a housing shortage.
The number of condos for sale rose 5.6% to 15,222 listings during the same period in 2016.
Despite higher prices, it still looks like a buyers market for condos in Miami Dade County. This graphic below might tell you a lot about condo availability here in Miami. This might be the time to invest in a Miami property.
The trend nationwide of course is to rising house prices due to constrained availability. The latest US housing report shows consistent strength in all major housing markets. San Francisco, the Bay Area and New York have lead the way with strong rises. Miami, Florida placed 9th in prices in the US, according to a report from Zillow.
The Miami housing market for 2019 buyer profile are very similar to what you’ll see in the Boca Raton South Florida real estate market forecast. Recent events have affected foreign interest.
The biggest event here to affect buyers, and therefore prices, is Hurricane Irma, and several other hurricanes that passed through.
There was a lot of doom and gloom talk about the hurricane’s wiping out the South Florida economy, but it looks like they’ve already been a boon to it. Perhaps money has been diverted from buying new and resale condos to reconstruction of homes in the greater Miami area?
Worried about the jobs outlook?
“After analyzing 52,866 job postings from Miami, Tampa, Orlando, etc., we found that not only has hiring rebounded it is actually surging dramatically beyond normal 2017 demand for at least 13 kinds of jobs,” said Kushal Chakrabarti, co-founder and CEO at TalentWorks of Berkley California. – from report floridapolitics.com.
Home Sales Prices Levelling Off
Home prices have consistently risen over the past year. The momentum look strong. Screen capture courtesy of Miamirealtors.com
On the other hand, a big decrease in cash sales show a traditional type of buyer is missing from the market right now.
Miami – Good Time to Buy?
Is this a buyers market? 2+ bedroom condos are decreasing in price and rents have fallen 1.5% in Miami. Contrast this with condo price increases of 8% to 9% in Washington DC, San Jose, and 13% in Denver Colorado and you have some perspective. Prices in Honolulu, Houston, and Chicago have plunged in comparison.
The real estate district of Miami includes the communties of Coral Gable, Cutler Bay, Doral, Homestead, Brickell, Medley, Miami Springs, Palmetto Bay, Pinecrsst, and Sweetwater. It doesn’t not include Fort Lauderdale which is a separate MLS board.
Check out the neighborhood profiles on Neighborhood Scout. They include price appreciation, demographics, and more for Miami’s best neighborhoods and all the districts. Very helpful.
Looking to buy a condo or house in the Miami area? The typical buyer of homes in this region come from around the world, from New York and Toronto, to Dallas and Houston, to Dubai, Singapore, Beijing, Hong Kong, Sao Palo, Rio De Janeiro, to London UK. A good portion of buyers emanate from Venezuela, Columbia, Argentina, Brazil and Canada. Colombia consumers are most interested in Miami real estate this fall.
According to Miami Realtors.com, interest in Miami is strongest from buyers in
- Charlotte, NC
- New York City, NY
- Atlanta, GA
- Chicago, IL
- Los Angeles, CA
- Houston, TX
- Dallas, TX
- Auburn, VA
- Boston, MA
- Simi Valley, CA
NAR reports that almost 40% of residential property is purchased by foreign buyers.
Buyers Forecast 2019: The Miami’s Herald’s buyer survey revealed the buyers forecast that residential home values will fare over the next 12 months, 36% believe they’ll rise, a third think prices will remain flat while 21% believe they will depreciate.
You can discover more about Buying in Miami via the Buyer’s Survey from Miami Herald
Graphic courtesy of the Miami Herald
The Miami Herald undertook an informative survey of buyer attitudes and the opinions definitely point to the buy side.
Miami’s beauty, incredible climate, business opportunities and proximity to Europe and the Caribbean make it a key position in International business and trade. With condo prices subdued currently, now may be the time to pick up a bargain before prices rocket again.
Bookmark this post for future updates.
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