Guest blog post written by Erin Holdgate of Zillow.
While sellers enjoyed favorable conditions for years, Miami buyers finally have a reason to celebrate. In fact, a recent report placed Miami as the second-best real estate market for buyers.
If you’ve been waiting to buy property in Miami, 2017 might be your year.
Market Conditions and Home Values
Miami is now officially a buyers’ market, with supply outpacing demand. Listings are subject to more price cuts and spend a longer time on the market, so buyers retain the negotiating power and are more likely to pay below the initial asking price.
Miami home values rose 4.5 percent in the last year, but are predicted to fall back 1 percent over the next 12 months.
Miami is an incredibly diverse city, and while some of the most exclusive Miami-Dade County communities fall outside the city limits, buyers can expect to find plenty of luxury in these popular neighborhoods.
Downtown Miami and Brickell
Offering a vibrant lifestyle, views of Biscayne Bay, and access to big-city amenities, Downtown Miami and Brickell remain some of the priciest neighborhoods in Miami proper. However, median home values in these neighborhoods steadily declined in the past year, dropping 2.5 percent in Downtown and 3.5 percent in Brickell.
Both neighborhoods are predicted to experience a 2 percent decrease in home values in the next 12 months, giving home buyers in the area a slight upper hand. Buyers can expect to pay about the same in either location: $458 per square foot in Brickell and $438 in Downtown Miami.
While listings for single-family homes dot the west side of this island village, condominium unit listings line the 2-mile beach on the island’s east side. The median listing price in Key Biscayne is just under $1.8 million, and buyers can expect to pay about $822 per square foot, close to double the cost of a home in Brickell. Key Biscayne home values declined 1.2 percent throughout the past 12 months and are predicted to fall another 1.6 percent within the next year.
Known as one of the oldest neighborhoods in Miami, historic Coconut Grove is a popular destination for Miami locals and tourists. Although the real estate market is currently more competitive for home buyers here than in other parts of Miami, conditions are expected to shift in 2017. After a steady climb for the past five years, home values seem to be plateauing and are predicted to fall more than 1.5 percent within the next year. Currently, the median listing price in Coconut Grove is $950,000.
World-class shopping, private beaches, and signature golf courses define Bal Harbour, located at the northern tip of the Miami Beach barrier island. Although home values in Bal Harbour are higher than ever, climbing almost 16 percent just last year, that growth is predicted to level off in 2017. Nearly 15 percent of Bal Harbour listings experienced price cuts in the last year. Market conditions are becoming more favorable for home buyers in Bal Harbour, where the median listing price is $1.9 million.
Although Miami has been a competitive real estate market for years, conditions have begun to shift in favor of the home shopper. Because these trends are predicted to last throughout 2017, Miami homeowner hopefuls may finally have the upper hand in many sought-after neighborhoods.