MIAMI Association of REALTORS

     

                

Miami Herald: Leader's Columns

  • Miami: Current Real Estate Market Facts

    by | Apr 16, 2016
    Print Version: English | Spanish

    By: Lynda Fernandez, SVP of Public Relations & International

    In response to increasingly negative media reports about the Miami market, here are some facts and trends that reflect the strength and vitality of local real estate.

    Record Sales Activity

    The Miami real estate market experienced record sales activity from 2011 until 2015. Sales remain strong, particularly in certain price points and neighborhoods. In the mid price ranges, existing home sales are increasing by 30 percent year-over-year.

    Majority of Transactions Are All Cash

    All cash transactions account for more than 50 percent of Miami existing sales and 80 percent of new construction, making a crash very unlikely. Words like “bust” and “crash” are unfair and irresponsible in a market were the majority of sales are not financed.

    New Construction Cycle Vastly Different from the Last Boom

    The current real estate cycle is vastly different than that the last boom. Developers are being cautious and not overbuilding. For example, several proposed projects, which may be brought forward at some later point in the future, have been withdrawn in recent months. According to IRR Miami and the Miami DDA, 85 percent of the product currently under construction in Downtown Miami is sold. There are only 7,200 units currently under construction that are to be delivered in the next three years. In contrast, in 2006 there were 18,500 units under construction.

    Miami Remains Top Market for International Buyers in the US

    Despite the strengthening of the US dollar, Miami remains by far the top market for international buyers in the US. International unitsales and dollar volume account for 26 percent and 36 percent of total sales, respectively.

    Distressed Sales Decreasing Significantly

    REOs (bank-owned) and short sales continue to sharply decline, contributing to the health of the market. Only 23 percent of Miami sales are distressed compared to nearly 70 percent in 2009.

    Housing Prices Remain at 2004 Levels

    Home prices have increased consistently since 2011 yet remain at 2004 levels. While Miami is recognized a leading Global City, local real estate is much more affordable than that its counterparts worldwide. According the National Association of Realtors, properties In Miami-Fort Lauderdale-Miami Beach are five times less expensive than comparable real estate in London, Hong Kong, San Francisco, and New York.

    Print Version: English | Spanish

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