Despite the unpleasant news on the Zika virus, hurricanes and a slowdown of the real estate market, Miami is still the place to be.The Miami Association of realtors noticed that the market of the single-family home had a peak in sales during the month of August. The peak was both in volume and in prices and most of closed sales were all-cash.
The downtown population increased of 150% since 2000 and simultaneously also the household income which is on average about $110,000. It’s almost the double of the national average. This means more spending power.
So why is Miami still the place to be and to buy ?
LOWEST INTEREST RATES:
The rates have been the lowest in decades giving to the buyers a higher spending power.
BEST-PRICED CONDO COMPARED TO OTHER CITIES:
With a budget of $1 million, you can buy 17/sqft in Monaco, 27/sqft in New York, 57/sqft in Paris and 6/sqft in Los Angeles. In Miami you are able to buy a 829/sqft unit.
DEMAND IS ON HOLD BUT IT’S HIGH:
There are a lot of potential buyers who are just waiting to jump into the market as soon as prices decrease a little. So the demand is there, just on hold. A lot of people have their eyes on Miami. It’s just a question of timing.
INVENTORY IS NOT HIGH
We have a wide inventory overall, but nothing compared to 2007. We have a variety of pre-constructions condo, different price ranges and different location. These condos are almost all paid with no or little financing. We are not going to have the same issue we had during the financial crisis of 2008 because the banks and the developers required at least 50% down-payment.
INTERNATIONAL BUYERS ARE STILL ATTRACTED BY MIAMI
The majority of buyers in Miami come from Latin America, Canada and Europe. The dollar is very strong nowadays but experts forecast a drop in 2017 which will re-fuel the demand.
SLIGHT DROP IN PRICES
Sellers are slightly decreasing their prices and thanks to that, we notice more closed sales. Sellers are more flexible, we can confirm that we are in a buyer’s market. The inventory is high which means buyers have more choice.
CONSTRUCTION COSTS ARE LOWER:
The prices for the construction are going down so it will have an influence on prices of new projects.
SALES DURING ALL YEAR LONG:
The peak season in Miami is during winter but during the last few years there are buyers all year round.
What are you waiting to invest in a condo in Miami? It’s a city where do you can find everything you need and is an appealing place where you can have fun live, work and raise a family. Whatever your needs are, you can find it here.