Fans of famed Miami Beach, take note: The Miami real estate market is in good shape.
According to a report from the Miami Association of Realtors published in the Miami Herald, the Miami real estate market saw a 5.9 percent increase in the sale of condominiums valued at $1 million or more during January. The sale of homes fell at the national and state levels, but in Florida, the sale of condos rose compared to 2017.
The Miami Association of Realtors analyzes data from the Multiple Listing Service database, which lists homes for sale but also tracks sales data realtors, real estate experts and investors use. Those experts say if you’ve been considering buying a condominium in Florida’s most dynamic city, there’s no time like the present.
The luxury real estate market in Miami is strong, with incredible opportunities for luxury living in one of the world’s most popular cities. Miami has always attracted wealthy international buyers, but the strength of the U.S. dollar is driving some Latin American buyers out of the market. According to a story in Mansion Global, “Luxury condo activity doubled in Miami Beach and the surrounding barrier islands in the first three months of 2018 compared to last year — a better-than-expected start to the year in South Florida.”
Despite plenty of deals being made, there’s no shortage of properties, which keeps prices stable. Experts estimate there’s a 14-month inventory of condos in Miami, a number favorable to buyers. A “month inventory” quantifies how long it would take for properties currently available to sell at the market’s present pace. It’s primarily used to gauge the competitiveness of the real estate market, according to Katherine Tattersfield’s blog.
But the inventory also means you may be able to close quickly. And let’s face it: Buyers who are ready don’t want to wait. Also, the 14-month inventory is trending in a positive direction: Downward, toward a balanced market.
Over the last few years, people have been paying cash for their new pads. In 2017, a 42.2 percent of sales of high-end homes were purchased mortgage-free. That’s almost double the national figure. Experts say cash sales indicate a lot of foreign buyers in the market. A report in The Real Deal confirms foreign buyers spent more than $7.5 billion on U.S. homes costing more than $1 million between March 2016 and March 2017. A whopping 25 percent of those purchases were made in Miami and about 95 percent of those buyers paid cash.
The real estate market in Miami is heading toward balance, but mortgage rates are rising. For the week ending April 19, the U.S. weekly average 30-year fixed mortgage rate rose 5 basis points to 4.47 percent, its highest since January 2014, according to Len Kiefer, Freddie Mac’s deputy chief economist. At the same time, the median home sale price in March was up 8.9 percent from one year earlier — the highest price growth in four years, Redfin reported.
One of Florida’s most attractive features is the absence of a state income tax. Also unchanged in the Republicans’ tax plan is the sellers’ capital gains exemption, which excludes the first $500,000 in profits for couples and the first $250,000 for single filers when they have lived at the home for at least two years.
But some tax changes will affect buyers — minimally, experts say. The new tax law lowers the amount of mortgage interest that can be deducted and it also slapped a $10,000 cap on the federal deduction for state and local taxes, including property taxes. On the positive side, this may slow price increases in expensive housing markets, but won’t result in a decline given the strength of the economy, according to the Washington Post.
Mike Pappas, president and CEO of The Keyes Company, believes the new law will have a minimal or no impact on the sale of luxury properties and real estate will continue to appreciate at a high single-digit rate.
Another reason the Miami real estate market remains so healthy is the city’s international appeal. Miami is a melting pot that attracts throngs of affluent people, and Beauchamps Estates predicts high net worth residents will continue flocking to Miami through 2026.
Experts say cultural diversity drives a strong economy. At a time when most cities have stopped growing, Miami is an exception. The city has a global viewpoint and greets newcomers with its own form of hospitality.
It’s an oceanside oasis and a global meeting place for Latin American businesses looking to expand stateside and the American companies that want to capitalize on that expansion. On both sides, Miami wins by providing the venue.
Whether they’re relocating long-term for retirement or short-term for a new business opportunity, all those people need somewhere to live. In January, Ryan Shear, principal for Property Markets Group, said in MansionGlobal.com, “I literally don’t think there will be a better time to invest in the Florida property market than right now.”
Miami is a jewel with broad appeal, so buying a luxury condo is a sound investment even if you don’t plan to relocate. As the city grows, rental property is in high demand. Websites like VROB and AirBNB are making it easier than ever to harvest passive rental income.
Whether you’re looking for the home of your dreams or an investment property that makes a statement, Elysee appeals to buyers searching for ultra-luxury living and who value personal privacy and appreciate exclusivity. With only 57 residences on 100 floors, plus a wealth of amenities, Elysee provides a perfect balance of lavish metropolitan living and a deeply intimate personal space.
Elysee’s decorator-ready smart homes have floor-to-ceiling impact windows, spacious terraces, private elevators and chef-quality kitchens. But for many people, it’s the unobstructed views of Biscayne Bay and downtown Miami that seal the deal, because there’s no other city quite like Miami. View residences today and schedule your appointment to learn more.