This week, I decided to talk about the top trendy topic, the COVID-19. The Corona Virus is affecting almost every industry worldwide, but how is it affecting South Florida Real Estate?
As obvious as this might sound, Miami is a seasonal city. The high season starts around November and goes till April or May (depending on the year). However, this year, the Coronavirus has created a slowdown of people flying to Miami to check out properties for sale. Sellers feel hesitant of giving access to show their units to potential buyers to prevent "strangers" coming in and out their homes, there are fewer people flying to Miami to check out real estate, foreign sellers or buyers have been forced to delay closing due to canceled flights to Miami, buyers renegotiating to get better deals using the COVID-19 as an excuse just to mention some few issues creating a deceleration for the industry.
Big events that usually attract more people in town got canceled, which decreased the prospective buyers. Events such as the Ultra and Winter Music Festival, and eMerge Americas got postponed due to the high risk of the pandemic and this combined with flight cancellations, has created a really low interest for real estate. People are pausing their property's research and the market has been ceased.
The short-term rental market has suffered the most! A large number of visitors coming to Miami during the high season to attend Miami's events, or just to visit the sunshine state, are being forced to cancel their trips and their bookings.
The Coronavirus is affecting South Florida real estate at different levels. Not just the future of the industry has a risky horizon, but the ongoing deals are showing negative aftereffects. However, not everything is bad news, as highly populated cities in New York are coming to Miami looking for a "safer" place to be. As well the high-end market hasn't been remarkably impacted.
People are being cautious as it is normal when there is a market drop like the one we are facing right now. Buyers and sellers are waiting a month or two to see how the Coronavirus situation evolves as when there is uncertainty, people are less likely to invest. However, what is well known about crises is that while some can see problems, some others see it as opportunities, so contact us to find those deals that can become great opportunities.