Anybody who understands the business of real estate is well aware that it vacillates between being a seller's market and a buyer's market. Although right now it's a buyer's market, don't be fooled into thinking this is a bad thing if you're a seller, because Miami real-estate prices are, as always, talked about around the world.
Those who are new to the real-estate business at least understand that pre-existing home sales in Miami, Miami Beach, and Ft. Lauderdale have been phenomenal these last few years—housing prices in these regions surpassed the top 20 metropolitan areas in the country, according to the National Association of Realtors (NAR).
The NAR has documented that home values in the Miami area, for example, have risen 79%, while the national average has increased only at a rate of 32%. A home in southeastern Florida that was worth $145,000 in 2000 is now worth $371,600. And these statistics are separate from the sizzling pre-sale market that continues to attract primary-, secondary-, and vacation-home consumers. During this past year, in the city alone, 63,776 residential and condo units were approved or are in the development stage. This compares to a total of 9,250 total units sold in the previous ten years together.
Keep in mind that South Florida has just come out of the most unexpected housing boom in its history. So what does this mean? It means that every possible piece of land that can be built on has been built on, sending prices soaring since the dawn of the 21st Century. Prices in Sunny Isles Beach have gone up 200% and in North Bay Village prices have risen 250% in this time period. The skyline and shoreline have been redefined, which in turn has created billions of dollars in homeowner equity arid has effectively turned this part of the country into one of the most expensive places to live.
It's true, however, that prices have been quivering recently. Houses are staying a bit longer on the market and this has made some people a bit more guarded when making decisions. However, demand still remains strong because land is limited and the market's slowdown has been on an even keel.
If you're a seller, don't panic and throw in the towel. The worst-case scenario is that you'll still be okay. If you're looking for a home, this could be your time, as prices are leveling. Just don't expect a piece of paradise to ever get back to the pre-Millennium prices, because it's probably not going to happen. But it's a given that luxury properties on South Beach, including waterfront and office condos, as well as single-family homes, will always be a good investment. And according to Florida's Office of Economic and Demographic Research, more than 150 people are moving to South Florida on a daily basis. If it seems that people are hesitating to buy, it's because they're afraid of getting a bad deal.
There's no way to predict the future, but the following is generally known information about Miami: It's an international player, it's the only part of the country that is balmy year round, it offers exceptional night life and access to the rare natural beauty of the Everglades, and it has been and continues to be one of the most sought-after places in the country to live. So, if you can afford to find your dream home, the overwhelming opinion by experts is to go for it, but make sure you get a good deal.
Keep in mind the fluctuating process of real estate, because if you're setting your sights on a steal, don't expect to necessarily find one. Make a wise decision before the trend turns back around. According to a study conducted by the US Census, last year Miami-Dade ranked second in the country, behind Brooklyn, New York, as an atmosphere in which residents expect to expend more than 30% of their income on mortgage payments.
If you're searching for a home in the Miami area, the best advice one can follow is to go with proven real-estate agents whose expertise will point you in the right direction.
