After a tumultuous two years it appears Downtown Miami’s real estate market is finally starting to level
out, which means good news for future buyers. The Miami Downtown Development Authority’s Q2 2015 Residential Real Estate Market Update revels that a trend toward correction in the market combined with economic troubles abroad has led to a stabilization of home and condo prices in the area. According to the report, “research suggests that the residential downtown development market cycle is firmly in the middle of the cycle”, which means more reasonable prices for buyers. The report also showed that rental rates are stabilizing as well, after an 8 percent increase seen from 2013 to 2014 and a 5 percent increase seen from 2012 to 2013. Buyers will now be able to get the best deals we have seen in years, and with the steady rise in development throughout South Florida they can be sure they are making a good investment.
Downtown Miami is also very dependent on foreign buyers, however they are becoming less and less active in the market due to deprecation in the value of their currency. As the report states, “The decline in foreign currencies compared to the US dollar over the past 18 months has narrowed the buyer pool. Several brokers have expressed concern regarding the closing ability of mid-level buyers that may not be fully denominated in the US currency. There have been early reports of buyers seeking approval for the assignment of their contract to a third party.” The lessening of foreign presence in the market means that the buyers who do have the capital will have less competition over property than they would have a year and a half ago. Now is the time to buy a residential or commercial property, so why wait until interest rates go up? If you are interested in South Florida real estate don’t hesitate, contact a RE/MAX agent today!