The sky is not falling, according to a report released by the Miami Downtown Development Authority for the period between January 2015 and January 2016. The report covers Brickell, Downtown, The Arts District, Edgewater, Wynwood, Midtown, and Overtown. Currently 78% of new transactions are cash, even with the reduced number of foreign buyers. Coincidentally, 78% of the existing units under construction are pre-sold. The reduced number of foreign buyers may be reflected in the slowing sales of pre-construction. Developers have responded by halting or postponing projects, decreasing the number of units to about 2000, from 3600 projected in 2014. Overall there are more than 8000 units in various stages of completion. When these are completed, the rental inventory will increase, stabilizing the rents which have increased 5% each year for the past 3 years. The response to the increased inventory for sale may not be price reductions, but rather other measures: New financing options offered by developers, lower deposit thresholds, and Fannie Mae approval for projects will make the market more accessible for domestic buyers. The confluence of architecture, design, amenities, and infrastructure is transforming Miami. I have my favorite projects. Let me help you to purchase in yours.
