Thinking of buying up some property of your own in the New Year? Contrary to popular belief, one of the best places to buy said property could well be in Miami. The prices are so low you are sure to snap up your dream property at a price you will love. Not sure if Miami is right for you? Let’s take a closer look.
Miami is the Best Place to make Real Estate Investments
In the last few years, the Miami housing market has managed to attract some negative press. With a slightly higher than average crime rate and a reputation as a holiday destination; this city rarely gets considered to be one of the better places to settle down… the reality of Realty in Miami could not be further from the truth.
Those follow the news will note that even the local papers are commenting on the lack of houses being sold. There is no new blood coming into the city; there is a distinct lack of high flying buyers or property investors. We hope to see this change in the coming years. As it is, there has been no new growth in the Miami housing market for the last year – and rumors are that the prices might actually be falling. Whatever the truth of the matter: it means one thing for certain. The Miami Real Estate industry is a buyer’s market, with prices very nearly on the floor.
Price, as much as it matters, isn’t the only reason that you should consider purchasing property in Miami. There are a whole host of other reasons, some of which are as follows:
- The weather – Miami is in the sunshine state. This means that even December sees temperatures well above 20 degrees. This is great – especially for those of us more used to a little snow!
- The Diversity – Miami has been nicknamed ‘the Magic City’ for a reason. There are all sorts of cultures here, all living alongside one another without clashing.
- Home Prices have Peaked – this means that there is only one direction they can go in. If you want to buy and not resell then this is the city for you!
- The beach – and the bay – and the water…. Everyone loves that soaking-up-the-sun lifestyle you can only find in Miami.
- The Everglades are on your doorstep – those that love the freedom of the great outdoors should grab their tent and move to Miami – immediately!
- Miami is known for the arts. Think of all the wonderful neighbors you could have!
So if we have convinced you that Miami might be the best place to buy real estate in 2020 then you should take the next steps towards taking the plunge…
Predicted Housing Market Trends in Miami for 2020?
So as we move into the New Year, what sort of trends are we likely to see in Miami Real Estate? Our expert analysts predict that the Real Estate market in Miami is due to pick up. Indeed, this is a trend we have been poised, waiting for, for the last few quarters. Besides the forecast upwards turn, what else can we expect from Miami Real Estate in the coming year?
The Coming Months in Miami…
The coming months in Miami should see the continued stability of property prices. Statista puts the median home value in Miami at just under 200k at the tail end of 2019. Going into 2020 we expect that the governments scheduled 6,725 new homes to be built across a three year period will be steadily outgrown by the expected 17,3550 new properties that will be demanded. Since there is such a huge disparity in figures, the State estimates some of the 60k excess properties will soak up the extra.
What does this mean to you and me? Well, it means that the likelihood of owning a brand new house in Miami is slim to none. If you want to take advantage of this disparity by buying up some of the property and converting it to rental space, then this would allow some of those displaced residents a place to live. If you can take advantage of this then you could be in the money.
How much are Miami Renters Paying?
If you were to take advantage of the gap between new housing produced and new resident’s demand then you could rent a property to some of the 13k citizens that will still need a home. The easiest way to do this is to buy a property and rent it out. If you were to do this, the average rent you could earn on a Miami property would be roughly 1.7k for 888 square feet of apartment… this high figure is the reason nobody rents in Miami!
The Growth of the Luxury Apartment Market
One thing we have noticed – and that has been cited by local news sources – is the distinct lack of newer, high-end properties coming on the market. It seems that the production of new apartments of this type has stabilized, allowing the Miami real estate market to recover from so many years of luxury holiday builders!
We predict that 2020 will see a momentary continued pause in new luxury apartment production in Miami. Instead, the newer apartments and condos will focus on being more economically friendly. We expect to see that the majority of the scheduled 6k or so new homes will be designed to accommodate the younger family. We also suspect there will be more of a drive towards long term Miami living, and less of a drive towards vacation accommodation.
That being said, the Miami real estate market is known to fluctuate now and again… and we do not have a crystal ball! What we can be sure of is that the Median rent and the cost of a new condo aren’t likely to fall any time soon. The savvy take advantage of this… while the rest of Miami looks on in envy!
Buying Property in Miami?
Buying a property in Miami might be the best decision you ever make – but no house sale is easy. If you have decided to take the leap then contact us today. Fortress Realty is a well known name in Miami Real Estate, so you can check them and see what they can offer to you.