Will the Miami real estate market be impacted by Trump’s new presidency?
It was a long wait but finally last week the elections were over. Everyone in Miami was hoping to see things move right afterwards. But is the outcome of the election really going to have an impact on the real estate market at our level? As we know, Trump mentioned during his campaign that he will cut down taxes and regulate immigration. In Miami, the majority of investors come from Latin America, in particular from Brazil and Argentina. Will investors hesitate to invest on the Miami real estate market? What will be the impact on sales?
Economists think that on the one hand macro economics will not affect the local market but on the other hand immigration policies, a strong dollar, friction with foreign countries and low confidence over the US politics can affect a lot the Miami real estate market. Foreign investors are the bread and butter of Florida’s real estate market. Trump can scare off the possible investors. Nevertheless, investing in the USA remains a long term safe investment.
Realtors are more about timing. We hope that since the elections are over, the market will start moving. Some latins American buyers are worried about possible visa restrictions. However, the US economy is strong so even if foreign investment is scarce due to a high dollar and weak south american economy, our focus will be on US citizens buying second homes or settling in Florida to reduce their income tax. On top, Trump knows the Miami market, he has several condos in Florida and major real estate investments with his name on it such as the TRUMP Towers. He is sensitive to the importance of attracting foreign investors.
In general, developers think that buyers have to take their time for a couple of weeks to digest the news about president Trump. Developers don’t know what to except from him but they think that the Miami market has been always attractive for more than 30 years. Politics never affected the market because investors think about the long term. Trump talked about cutting taxes in order to generate more spendable income. This should generate more buying power which can lead us to a new market boom.
As a conclusion we can say that Florida will not be drastically affected by Trump’s government. Miami will continue to attract investors foreign or national. Culture activities are spreading in town, educational institutions and hospital quality is improving. Overall the quality of live is excellent in the Sunshine State. The real estate market is very slow at this moment but a lot of eyes are watching and are ready to jump as soon as prices will start decreasing. . Miami has always been a center of interest and has always been considered as a safe heaven. Don’t forget that Miami is a hub between South America, USA and Europe. Furthermore, now the Chinese are starting to show interest in the Miami real estate market.