Miami Real Estate market has initiated a new cycle. After four good years of continuous up ticking and price increase the market is finally getting to a slow down.
Home re-sales are still going strong but the inventory is growing. This time of the year is quite typical that the inventory grows, but we are recently experiencing a higher then average growth. This trend is not a surprise, it is just a normal reaction after a successful period of proven sales, which has stimulated sellers to cash in the built in equity. Many new construction project especially in certain neighborhood like the internationally renoknown Brickell area, are coming to completion also contributing to the inventory growth.
The market slow down is very welcomed by many real estate professionals.
Are we going to see a market crash? No, we will not.
The majorities of real estate transactions in the last four years have been done mostly in cash and over a 55% of today transaction are still conducted mostly in cash. This means that we will not experience the financial disaster that caused the Real Estate melt down.
Miami is a very dynamic city and family from all over the world are constantly moving into town with their families. The continuous increase in price has put on the fence many buyers, when prices will adjust a bit we will see these buyers coming back into the scene. Investors will come back and we will have plenty of renters for their investments like the millennials with too much student debt and not enough money for a down payment, the would-be buyers with bad credit, and even the boomers who can no longer afford the hefty home prices but they do not want to leave our wonderful city.
Also if maybe the dollar appreciation has pushed away some international investors, on the other side the volatility of the stock market that we are experiencing is bringing new American buyer to the Miami market.
Miami Real Estate is a Market and as such many are the variables that influence it and constantly adjust creating new opportunities. It is a market that is continuously attracting interest locally and internationally and it will find its balance.