DO YOU KNOW THE PRICE OF REAL ESTATE IN MIAMI

 DO YOU KNOW THE PRICE OF REAL ESTATE IN MIAMI

Understanding how real estate works across the Atlantic can be difficult at times, and Miami real estate prices are no exception.

Fortunately, there are many resources on real estate in the United States.

So yes, it's in English, yes, it's sometimes not always intelligible. But Investir.us does this work for you.

By the end of this article, you will have an informed view of real estate prices in Miami.

And I mean "prices"! Because as we'll see, the disparity is glaring in Florida's second most populous city.

Miami real estate prices 

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The (average) price of real estate in Miami

The median cost of square feet in Miami is currently $416.

Meanwhile, in January 2023, the listed price of homes in Miami was $590,000, with a year-over-year upward trend of 19.2%. The median price of a home sold was $475,000.

Please note, however, a small geographical clarification:

First of all, the Miami metropolitan area is the seventh largest metropolitan area in the United States and the 72nd largest metropolitan area in the world.

The metropolitan area includes the city of Miami (the financial and cultural core of the metropolis), Miami-Dade , Broward , and Palm Beach counties , which are the first, second, and third most populous counties in Florida.

What can already be said is that Miami also continues to remain strong despite higher interest rates.

An additional factor fueling the Florida housing market is the surge in international buyers.

More than ever, many international buyers from all over the world want to get a piece of the Sunshine State.

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Predictions and trends 

The Miami metropolitan area is expected to be one of the few major housing markets not to experience a decline in home prices in 2023, according to a new report from Goldman Sachs.

However, some events should occur:

Buyers will regain (some) power: it is likely that there will be more choice on the buyer side. Given the market's rebalancing, bargaining power should reappear on the buyer side.

Miami's migratory force: South Florida, and therefore Miami, is one of those rare markets where demand is constantly driven by waves of migration. Whether national or international, migration makes this area extremely attractive for housing.

Miami as an investment product: Miami has always been a popular investment destination for foreigners. This will undoubtedly continue in 2023 and beyond. It's worth noting, however, that the majority of foreign investment is in condos. According to recent reports, 58% of foreign purchases in Miami last year were in condos.

In conclusion, according to the latest available figures, it appears that market activity in November was significantly affected by the Federal Reserve's decision to raise interest rates towards the end of 2022. Mortgage rates peaked at 7.1% in early November.

At the time of writing, interest rates have declined slightly. However, the Fed indicates that another rate hike could be on the horizon for 2023.

So this is a HUGE uncertainty. And it would particularly affect Miami, although the impact is still unclear.

If rates rise, mortgages will continue to be unaffordable for many homebuyers.

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Investors: Is there an opportunity to be seized?

In any real estate investment, cash flow is the holy grail. The Miami real estate market has always offered diverse opportunities for real estate investors.

First of all, real estate investing in Miami can be done in a growing neighborhood. However, proceed wisely. Remember that Miami is large, and the metropolitan area is even larger. Each location has its own unique characteristics.

Popular Miami neighborhoods include Brickell, Kendall, Aventura, Downtown Miami, Little Haiti, Mid Beach, Edgewater, Downtown, Coconut Grove, Brickell, Wynwood, Miami Springs, South Point, Miami Shores, Hialeah, El Portal, Santa Clara, South Beach.

However, many of these neighborhoods are already very expensive and offer less attractive returns.

What if the opportunity ultimately lies elsewhere? Obviously, it's a much more exclusive segment ... We're obviously talking about the luxury or ultra-luxury market.

Miami is expected to rank among the top luxury real estate markets in 2023.

Luxury real estate projects in Miami and surrounding areas such as Fort Lauderdale, Pompano Beach, and Boca Raton have attracted significant interest.

This is especially true in the Latin American market from countries like Brazil, Peru, Mexico and Argentina.

In 2023, the luxury real estate market will likely continue to grow in importance and potential profitability, driven by the migration of high-net-worth individuals and corporate relocations to South Florida.

For more interesting opportunities in Florida, there are other options. For example, the West Coast, which is much less susceptible to speculation, still offers attractive returns.