Miami Real Estate’s Biggest Trends NowDecember 1, 2016
While some of the main questions in the real estate industry haven’t changed much since 2015, others have completely changed. Bendixen & Amandi International, along with Miami Herald has interviewed 100 of the top real-estate professionals throughout Miami-Dade County. About 60% of the reports were the same or very similar in comparison to 2015.
However, some things have changed. Here’s a look at the biggest trends found in Miami Real Estate for 2016.
While 2015 had many real estate professionals stating that foreign buyers were dominating the market, 2016 hasn’t seen the same domination. Only about 33% of those responding to the survey said foreign buyers were dominating the luxury market. Many favored local buyers and buyers from out of town, specifically from New York.
Turkish Buyers Moving In
Miami has been known for its’ international presence for a long time; specifically from the Latin American region. However, the influence is shifting as Turkish buyers are starting to move in. The many condo developments throughout Miami have Turkish buyers excited. They are scooping up luxury condos to use as second homes and vacation properties.
According to some developers, about 5% of the luxury preconstruction condos are being sold to buyers from Turkey. About 10,000 Turks are estimated to be living in Miami part time and other buyers are looking to meet the requirements for an EB-5 visa. After obtaining the visa, an investment of at least $500K allows for permanent US residency.
High Appreciation Rates
The Miami real estate market has also been trending up when it comes to home values. The past year has shown appreciation rates of more than 8% for homes in the Miami area. The national average is about 6% per year and about 22.6% over a three-year period. Miami topped the 27% mark for three-year appreciation at 27.4% and well above the national average.
Related: Who is Buying Real Estate in Miami?
Other current trends in the Miami real estate market include:
- Rental prices staying nearly the same
- Favorable lending standards
- Condos still being developed
- Fewer distressed properties on the market
While the market remains very strong in Miami, it has slowed some over 2016. However, a large portion of the slowdown was due to less distressed properties on the market, while the strong US dollar also changed some of the perception from foreign buyers. Overall, the Miami real estate market is still trending up.