Is Miami Immune to the U.S. Market Correction?
The last couple of years have been a wild ride, there’s no denying that. Miami has been one of the U.S. cities that has not followed the nationwide trends as closely as the majority of the country. But are we immune from a negative trend across the States?
What Makes Miami Different?
One of the simplest things setting Miami apart from most of the U.S. is the size. We are the 7th largest metro area in the country. Secondly, Miami has a higher-than-average concentration of luxury homes. On top of that we are a coastal city which entices buyers from not only all over the U.S., but internationally as well.
Miami is a destination city within a state that has no state income tax. We are an anomaly in so many ways, so predicting how our market will react to the conditions nationwide is more difficult.
Fortune Magazine published an article January 15, 2023, entitled, “Miami to escape the home price correction in 2023 while ‘overheated’ housing markets like Austin get hammered, says Goldman Sachs.” This article dives in to the Goldman Sachs predictions nationwide for the rest of 2023. The article mentions that Goldman Sachs expects some markets to experience just a slight fall in their housing markets, “while its forecast has home prices rising in Baltimore (+0.5%) and Miami (+0.8%) in 2023.”
Complete Immunity is Not Reality
There is no way for any one location to be completely immune to the market conditions in the rest of the country. Miami is what we would call resistant to the U.S. market correction. The Miami housing market remains strong. We still have limited inventory, and many sellers are still getting top dollar for their homes.
That being said, rising interest rates has caused the buying frenzy to slow down. This doesn’t mean that sellers across the board should lower prices at this time. They may need to be more patient though. We don’t expect to see zero days on market sales become a trend again for the time being. Buyers currently have the benefit of some time to shop rather than having to put in sight unseen offers immediately to even get into bidding wars.
Whether you are looking to buy or sell within the Miami area, or looking to buy property here in our amazing city from somewhere else in the world our team is here to help. Give us a call, we’re happy to answer your questions and get you on your way to reaching your Miami real estate goals!
