You’ve probably heard that the U.S. nationwide real estate market will show signs of slowing-down this upcoming year. After years of a constant increase in the volume of sales, this upcoming year is expected to decrease by 2%. However, as for every rule, there is an exception, some housing markets are expected to beat the overall trend. Miami is one of those markets.
The analysis we are introducing to you studied different elements, such as the number of sales of existing homes in Miami, their respective prices and the number of homes being constructed at the moment. Different economic metrics were also taken into accounts, such as the local economy, population trends, unemployment rates, and other factors. All these factors drove into the conclusion, that Miami’s real estate market is expected to increase this year.
In the entire nation, prices are still expected to increase by a small 2%, and as mortgage interests are continuing to rise, more and more buyers are currently avoiding to invest. But why Miami’s market is overcoming this deceleration and having a projected increase in sales of 3%? There are 2 answers to that question:
- A strong economy
- A line of residents moving in
Regarding the strong economy, Miami has been developing an economy based on commerce, culture, and entertainment. It is now a city-center for the research institutes which has increased its technology jobs by 21.5% in 2018. This has made Miami the second fastest growing economy among the United States cities. Doesn’t it sound extremely attractive? Of course, it does. Even more to career seekers that are moving in to find better jobs with better lifestyles. This incursion of buyers has helped the city keep strong on its economy and continue growing.
On the other side, more residents are trying to come every year. Miami is being attractive for northeast citizens and westerns trying to run away from extremely high priced houses, taxes and cold weather. It continues to be one of the best places for retirees that are looking for a warmer home to settle. This increase in demand is expected to push prices up by 5%.
Miami is a dream place for home-buyers as it offers zero- state income taxes and all-year sun and fun. Even if international buyers have definitely shown a slow-down compared to past years, the market has expanded to new horizons such as European buyer which have driven a growing demand.
Developers continue to build mid-priced condos that are allowing long-frustrated aspiring homeowners to find a place. Buyers are now able to find a 2-bed unit at the Flamingo condo, it the heart of South Beach for $290,000.