Is Now a Good Time to Buy Real Estate in Miami
With many still feeling the effects of the housing collapse of 2008, there has been some natural hesitancy to purchasing real estate property again, particularly in the southern Florida area. However, thanks to changing conditions the real estate market today in Miami is flourishing and represents a golden opportunity for those seeking single family homes and condominiums in particular.
Why Miami-Dade is Prime for Buyers
Today, inventory levels in Miami-Dade are up 49% while luxury sales are down 21%. This combination has driven down prices, particularly in the $2 million and higher sales area where the continued growth of new single family homes and condominiums have managed to drive down prices. Over the past year, the addition of new homes and condos means that owners are now forced to lower the prices in order to make sales.
It should be noted that homes and condos that are priced in the lower range continues to rise which makes it more of a seller’s market. However, the opposite is happening with higher-end homes and condos which has created the perfect conditions for buyers and investors to take advantage of the market while it lasts.
Essentially, the old fashioned effects of “supply and demand” have taken hold with the luxury home and condo market. A few years ago, there was a higher demand for luxury real estate that combined with the anticipation that more buyers would be interested in this type of property. While their predictions may become real someday, currently the supply has far outstripped the demand which means that newly constructed single family homes and condos and particularly somewhat older structures have had to reduce their selling prices.
Why Buyers Should Take Advantage Now
If you are in the market for a luxury single family home or condo in the $2 million range and up, now is the time to buy in Miami-Dade. This is because such conditions will not last for very long. There are a number of reasons why making the decision to purchase now will pay dividends in the near future.
Rising Prices: In Miami-Dade as in all areas of the country, the real estate market is cyclical which means that what is low priced and available today may be scarce and expensive tomorrow. Essentially, too many new luxury single family condos and homes have been constructed which currently outstrips the demand. That will change soon as more people purchase these properties which in turn will cause the prices to go up.
Less Selection: The newer homes and condos in particular have been built with convenience and location in mind. This means that they will be the first to be purchased by buyers who are looking to stay in the area or sell at a later time for a considerably higher price.
If you have been considering purchasing a high-end single family home or condo, then now is the time to move. There will not be another opportunity like this in the Miami-Dade area for quite some time once more people discover the lower prices that are currently available.