Here are some facts and trends that reflect the strength and vitality of local real estate.
Majority Transactions Are All Cash
All cash transactions account for more than 50% of Miami existing sales and 80% of new construction, making a crash very unlikely.
New Construction Cycle Vastly Different From the Last Boom
According to IRR Miami and the Miami DDA, 85% of the product currently under construction in Downtown Miami is sold. There are only 7,200 units currently under construction that are to be delivered in the next three years. In contrast, in 2006 there were 18,500 units under construction.
Miami Remains Top Market for International Buyers in the US
Despite the strengthening of the US dollar, Miami remains by far the top market for international buyers in the US. International unit sales and dollar volume account for 26% and 36% of total sales, respectively.
Distressed Sales Decreasing Significantly
REOs (bank-owned) and short sales continue to sharply decline, contributing to the health of the market. Only 23% of Miami sales are distressed compared to nearly 70% in 2009.
Housing Prices Remain at 2004 Levels
Home prices have increased consistently since 2011 yet remain at 2004 levels. While Miami is recognized as a leading global city, local real estate is much more affordable than its counterparts worldwide.
Source: South Florida Market Intelligence. http://www.miamire.com
