According to a recent article by the Miami Herald, Miami’s real estate market is changing. They wrote it has “cooled off.” In no way is this a bad thing. Instead, there are signs Miami’s real estate market is healthy and steady. A quarterly report from brokerage Douglas Elliman and New York-based Miller Samuel Real Estate Appraisers & Consultants indicated this stability. In the near future, we will see a buyers’ market in Miami.
“This market has never had stability,” said Jay Parker, Florida CEO of Douglas Elliman, of the region’s perennial boom-and-bust cycles. “We have gone through tremendous growth over the last few years. It’s just natural that it will start to calm at that point. … But it’s not leading to an implosion. It’s leading to a market that is more sustainable.”
The report said home sales fell 25 percent in Miami Beach. They were down 12.5 percent in greater downtown Miami and suburbs. However, home sales are still above historical averages. Also, active listings in Miami have increased. The number of days listed homes stay on the market increased too. Prices are expected to come down in most areas soon. Median sales prices rose to $280,000 in Miami (up 7.7 percent annually) and to $435,000 in Miami Beach (up 2.4 percent).
“We’re shifting to a buyer’s market, and sellers may have to adjust their expectations,” he said.
Slower sales may be a result of a couple things. One, there is a strong dollar but weak economies abroad. That makes international buyers less drawn to Miami. Previously, they took advantage of investing while the dollar was weaker.
Real estate markets are always changing and Miami’s is no exception. At RE/MAX Paradise, we are confident in the stability of Miami real estate. If you are looking to purchase a home, a buyers’ market in Miami is coming. Check out the amazing properties we have available today!