The demand for Miami real estate, which spans new high-rise developments, second homes, and income-producing properties, remains steady from both domestic and international buyers amidst our rising-inflation and now higher interest rate environment. While current inventory levels in the 4th quarter of 2023 have risen to a more healthy level of 3.6 months, vs 1.4 months as was during the market peak, this is still historically low. The average Miami home price is now $569K in early November which represents a 6.7% year-over-year increase.
As Miami-Dade County continues to attract buyers from Latin America who seek a cultural city, buyers from California and New York who seek tax benefits, as well as buyers from many top companies who are relocating their HQ's or regional offices to South Florida (120+ companies in 2022 alone), these factors continue to keep our housing market very strong, even over other Florida markets, amidst rising recession concerns.
Miami Housing Market Outlook
My outlook for the Miami housing market in the year ahead is a continuation of the same consistent buyer demand as Miami continues growing into a large financial hub for many banks and financial companies and is now 2nd only in size to New York City on the east coast for the largest concentration of financial institutions. Should interest rates continue to bump up again, in addition to the increases already in 2023,, this should not have any significant impact on demand as many deals continue to be all cash or heavy cash. I also expect home price appreciation to be much more moderate in the year ahead as we are now post-pandemic and our market is rebalancing from the unprecedented level of accelerated market appreciation over the past couple of years.
View market trends and relocation advice
Market Trends I'm Observing
- A majority of deals continue to be all cash or heavy cash.
- A younger demographic purchasing investment homes for Airbnb and VRBO rentals.
- Continued strong demand from international buyers who are looking at the Miami market to acquire property as a way to diversify their investments. This has caused accelerated home price appreciation and now putting Florida more on par with the more expensive housing costs of New York and California.
My Relocation Advice
The best advice I am able to offer those seeking to move to the Miami area for retirement, a job relocation or to be closer with family is to not wait too long as prices will likely keep rising with time, especially with our current inflationary environment as the same size house will simply cost you more in the future. As Florida has long been undervalued in its housing prices as compared to other highly-populated states, I do not expect this trend to reverse anytime soon.
For those who are seeking to purchase investment properties in the Miami area, I would encourage you to reach out to me as our team, and industry partners, are helping many to generate significantly more income and higher net returns than traditional “safe” investment property of the long-term. Although Florida real estate prices have risen in recent years, owning income-generating properties is still one of the best strategies many are using to build long-term wealth.