Miami is known for beautiful beaches, Cuban culture, and an exciting nightlife. The city that was once in the epicenter of the housing bust is now a roaring market that's attracting savvy investors.
The sandy beaches are one of the biggest draws in Miami. The weather is beach-friendly year round. The culture sprung up around beach life and spawned a thriving nightlife. In addition to surf and sand, Miami offers the natural beauty of Everglades National Park and Biscayne National Park.
Miami is famous for its cultural diversity, with more than half of its residents being foreign born. The Cuban culture is ever present and an integral part of Miami. Yearly events including the Art Basel show and the South Beach Food and Wine Festival attract visitors from across the city and around the world.
Miami was hard hit by the housing crash, which impacted both real estate and the economy in general, but it has come roaring back in the years since. Buoyed by Florida’s low tax environment, with no income, inheritance, or estate taxes, Florida is on pace to have a one trillion dollar economy by 2018 according to an economic forecast by the University of Central Florida. That in addition to a low 5% unemployment rate, makes Miami an attractive market for residents and investors alike.
The real estate market has also been strong, fueled by by foreign investment and easy connections to Miami International Airport. Allan Kleer, a Master Broker with ONE Sotheby’s International, says “Asia has recently started providing us with a new and strong source of buyers for luxury condominiums and larger investment properties. They are aggressive in pursuing good locations and opportunities to renovate prominent waterfront sites, such as the former Miami Herald headquarters.”
Miami always has a strong new construction environment and resale market. This is especially true in the luxury condominium and luxury single family home markets. In July 2017, the Miami Association of Realtors reported a jump of 51.1% in sales of existing luxury condominium sales and a 9.6% bump in luxury single family home sales, with a 2.5% increase in total condominium sales.
Prices have gone up 68 months in a row for single family homes and 71 out of 74 months for condos. The median number of days from listing to contract were 41 days for single family houses, a 12.8% decrease from the previous year, and 72 days for condos, down 1.4% from last year. However, distressed property listings were down from last year, with 2.7% of sales being short sales and 8.2% being REO (bank owned properties). The total of 10.9% is down from 14.7% last year and a peak of 70% in 2009, according to the Miami edition of the World Property Journal.
Not only is Miami a wonderful place to work and play, but the market is firmly back in swing. If you’re thinking about investing in Miami real estate, talk to our team at Patch of Land.