Florida has an attractive real estate market, whether it’s the prices, tropical temperatures, lower taxes and more. However, with so many incentives, there is the doubt: what neighborhood to buy? How is the market for renters? Bendixen & Amandi International, in collaboration with the Miami Herald, have surveyed about 100 brokers, agents, and analysts to help answer these questions.
For those who rent, Downtown Miami continues to be the number one choice. Those with tight budgets may consider the neighborhoods of Homestead, Miami Shores, and Kendal. Investors: pay attention to the Design District. Although it remains popular, Miami Beach buyers, have to watch out for inflated prices.
Below is a summary of the study:
When asked if prices are feasible for buyers, on a scale of 1 to 10, the answer was 7. A big difference compared to last year’s results of 4.6. According to the June report of the Miami Association of Realtors, the average price of a single-family home increased from $335,000 to $355,000 year-over-year. In condominiums, the average price rose 2.1%, from $235,000 to $ 240,000.
The positive result found in the research can be explained as an oversupply of unsold condos and a growing number of new rental buildings – two factors that should make sellers and landlords adjust their asking prices to remain competitive.
“You’re starting to see the repercussions of overbuilding,” said Peter Zalewski, founder of Cranespotters, a website that tracks condo development in South Florida. “The supply of rental apartments is going through the roof, and the cranes come down, rents are going to come down, too. And there’s a 32-month supply of condos in downtown Miami alone, so the only way you’re going to move to a condo in this market is to lower your price. ”
While in the luxury market, half of the interviewees said that the inventory is high and the market is stagnant. However, this is not everybody’s opinion. Daniel de la Vega, president of One Sotheby’s International Realty, for example, said that the properties are being sold for 15-20% less than the asking price but that they are being sold.
“You have seven months ‘supply in the million-dollar single-family home market and 70 months’ supply at the over- $ 10 million range, so there’s a lot of inventory,” he said. “But these properties are still selling, and the [luxury] market is going to continue to appreciate. It will just be at a normal pace, nothing drastic. ”
The large number of apartments being built, approximately 4,800 new apartments for rent according to a study by Integra Realty Resources, and another 5,062 under construction explains why Brickell, Downtown, and Midtown are the top of the list of the most attractive areas to rent. For buyers, the winners are Coral Gables, Miami Beach, and Coconut Grove.
For the fourth consecutive time, Miami Beach was named an overvalued neighborhood with a median price per square foot of $520, according to Zillow. Brickell clocked in second at $ 497 per square foot, while the luxury enclaves of Sunny Isles Beach ($ 554) and Key Biscayne ($ 753) tied for third.
“Brickell has a majority of the properties that are condos,” a broker from Miami commented for the study. “They are always overvalued, because they are catering to offshore buyers.”