• +1 305 670 4455
  • Email Us

2017 South Florida Housing Market Trending Downwards

  • 2017 South Florida Housing Market Trending Downwards

    2017 South Florida Housing Market Trending Downwards

    Recently, a realty firm in Miami held its 2017 Real Estate Market Outlook conference. This conference broke down housing trends in Miami-Dade and Broward counties and presented an outlook on how housing in the Miami area will look for the next few years. The main findings in the presented report stated that an oversupply of condos throughout the county should lead to lower prices and an easier time for buyers looking for housing.
    The report went into detail and found that the oversupply of condos and housing is mostly found in the high-end market. This includes the largest supply of $1 million-plus condos in the area in its history, at over 2,500 condos on the market counted at the end of December 2016. Based on current monthly sales, the current amount of properties on the market equals approximately 55 months of sales until supply ran out. This is attributed to an inventory surge of over 75 percent combined with lower sales from previous years. The report stated that the main reason for falling sales was a stronger U.S dollar than recent years, which reduced purchases from individuals in other countries. As well, the report stated that, if current trends continue, the U.S. economy will continue to strengthen and more buyers will enter the area, leading to higher competition overall. Many of these higher-end properties that are available are found in areas such as Brickell, Miami Beach, Edgewater and Sunny Isles Beach. As supply and competition grow in these areas, the cost for the consumer should begin to decrease, although the time needed for prices to drop can vary.

    Along with condos, single-family homes costing more than $1 million have seen an increase in supply. As with condo sales, housing sales have fallen, leading to approximately 26 months of supply at current sale rates. This rise is supply and slowing sales allow prospective homeowners ample time to find the house they are looking for, as well as plenty of choice in the area.

    In contrast, lower-priced properties in the Miami-Dade market are seeing similar trends of increased supply and lower rates of purchase, but have much less supply overall. The supply for single-family homes is around six months and supply for condos is approximately 14 months. The Broward market is seeing an opposite trend, as housing supply is slightly decreasing and the trend of sales has increased in the last few years.

    All in all, the current trends of condo and housing are showing general trends that favor someone looking to purchase. Supply is increasing, especially among higher-priced homes, and average prices are falling. Lower-priced properties are seeing the same effects, although less supply means it may be more difficult to find the right property or price that you are looking for.