June 10, 2016
There has been plenty written recently about the real estate market cool down in Miami. While this is not usually something completely welcome to read about, the situation in Miami is a lot more nuanced than other major luxury markets in the United States, and experts believe the situation is not nearly as ominous as the media occasionally reports. In fact, the current conditions make this a perfect time to purchase Miami real estate.
Affecting Miami in particular, many luxury condominiums entered the market at around the same time major South American markets began experiencing volatility. Equity sell-offs and a drop in oil prices caused weakness in those economies. While the New York and Los Angeles real estate markets saw a leveling out at the luxury price point due to higher interest rates and an uncertain upcoming election, Miami was more directly impacted by the South American turmoil.
Possibly having an even greater affect, a multitude of new residential developments are currently under construction in Miami. These ultra-high-end projects offer similar amenities in beautiful settings, and more and more of these new developments continue to be announced. While approximately 80 percent of these pre-construction units are in contract - a stark contrast to the 2008 real estate bust - , some buyers continue to wait and see what else may be entering the market in the near future. They are able to be more selective and patient in this current market climate.
At this time, the economic issues causing some of the market downturn are beginning to ebb. Looking at it from another standpoint, the comparative stability of the U.S. economy has helped make Miami a safe haven for South American investors, especially in real estate.
The media reports on the Miami real estate market have also piqued the interest of buyers across the country. Prices have come down for the first time in years, creating the perfect opportunity for many to finally buy property in Miami. Real estate is almost always cyclical. While the situation in Miami in not as dire as many have feared, prices are down and sales have slowed. However, experts expect that all to turn around in as little as 18 months from now. Don't miss this short window; now is the perfect time to buy.
To take advantage of the current market and purchase real estate in South Florida, contact Niki Higgins at +1-954-817-2500 or +1-888-242-4422.
Source: ELLIMANInsights
