It is true that Miami is known for its iconic beaches, diverse culture, and economic success; however, there is more than meets the eye when it comes to Miami’s real estate market. A true hotspot for new and returning residents, investors, and foreign business seekers, this city is on a continuous uprise and has been that way for the past few decades. If you’re considering moving here, one thing is true; you should know the three big Miami real estate trends happening right now in 2021.
1. Supply and Demand
In general, the United States is dealing with a record high demand for housing. It is one of the worst housing shortages that we have experienced in the nation. This demand has skyrocketed housing values and single-handedly contributed to sellers getting above asking price for their homes in a matter of days or weeks after listing. Does this sound like good news if you’re looking to buy? Not necessarily. It can sound very discouraging to know that there is so much movement within Miami markets. That is why obtaining a professional, full-time agent can help you navigate the buying process better.
In addition, it is worth noting that the housing inventory in Miami is more than five times over the national average. That means that many consider our market to be a bit more balanced.
2. Long-term upward trend in single-family home values
While there has been a battle against oversupply in the Miami market, average home prices have increased by 20% year after year. We have seen slight decreases in values; however, the Miami market is trending upward. A trend that many don’t see diminishing any time soon. It is believed that this will not be an all- encompassing pattern, however. As for right now certain types of property are seeing this consistent trend.
3. Rental real estate is leading the way, slowly but surely
It is no secret that it is expensive to live in Miami. In fact, current housing prices and even rental rates, are significantly higher than national averages in the US. With a great deal of potential residents and investors, it is not surprising that demand has not gone down. If you are a short-term or a long-term rental investor, this could be a good time for you to get cash returning properties as rental vacancies decrease and rental rates increase.
It is important that you know what’s happening in the market around you in order to make the best decisions for you and your family. Let us help you navigate the Miami market.