The real estate market in Miami, Florida slows down as the foreign investors take flight. However, condominium development keeps coming.
Miami Curbed reports that the condo market in Miami appeared like "an ever-expanding balloon" sometime in 2013. It is even noted that the biggest real estate comeback story in the U.S is in South Florida.
Report says that Miami has become a "go-to destination for luxury buyers looking to add to their property portfolios." However, like a balloon filled with hot air, it is bound to descent slowly.
People who expected the drop could anticipate that 2016 might be the beginning of its softening. The slowing down of the real estate market is obviously fueled by a lot of factors. These could be the "stock market volatility in China, low oil prices, currency devaluations in South America, and a heck of a lot of new condo units coming on the market." As noted, these factors could be hard to get over.
Based on report, the signs of cooling down proliferate when 2016 begins. It is not only the sales of single-family houses that drop but also the sales of condos have stagnated. In addition, the prices of single-family houses continue to soar.
In a separate report of Curbed, it says that the "number of single-family home sales that closed dipped by 6.7 percent in November compared to the same month in 2014, while new pending sales fell by 15 percent, making it the fifth straight month of decline." This information is taken from the report of Miami Association of Realtors. The price of the median home has increased by 12%, amounting to $274,900.
As for the condo market, it is reported that there's also a decline. "The median days on the market for condos fell by 12 percent, units selling for $300,000 to $999,999 proved particularly sluggish, with homes from $300,000 to $399,999 spending 72 days on the market, a median increase of 50 percent, according to Miami Real Estate Association."
How do you think things will turn out for Miami's real estate market as 2016 progresses? Share your opinion in the comment box below.
