03 Dec Miami Real Estate Forecast – South Florida Housing Market Spring 2018 2019 Predictions Sales MLS Listing Data
Miami Real Estate Forecast 2018 2019
The spring 2018 forecast for Miami and most of South Florida is very good. According to the Miamirealtor.org, the spring outlook is bolstered by a strong US economy, growing tourism, and strong employment.
Hurricane Irma is history and the rebuild is still underway and after the current lull, the growth will continue. And given a strong economy, rising wages, and that Florida’s no tax status is still alive, buyers and investors will find 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 another price to $169k. 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.
After this winter and spring’s price dip, luxury home prices should rise back to an average of $392k. In December, the market for condos and homes in the Miami Dade & Broward County region remained a little flat, although house prices have risen 7%.
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.
Rental prices have been falling, so real estate investors will have to look harder to find good performing properties in Miami. The market for high priced luxury condos in Miami is suspect, just like it is in many luxury markets. Moderately priced properties continue to be in high demand.
It 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 2018 and 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. If we’ve seen the worst of the impact, then housing is likely in for a good period from 2018 to 2019.
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 mosted 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 2018: 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.
Book mark this post and return next month for another update.
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