Downtown Miami’s Market Shifts and Investor Caution | Downtown Miami Q1 & Q2 2023 Market Summary

Downtown Miami Q1 & Q2 2023 Market Summary. In Downtown Miami, a transformative journey is unfolding, echoed by shifting market dynamics. The current inventory is 7.04 months, marking a substantial increase of over 55% from the previous year. This upward trajectory in supply has been accompanied by an average price of $577 per square foot, reflecting a noteworthy 6% uptick compared to the prior year.

As we delve further into the market, we notice that the transaction volumes suffered a 27% decrease from the previous year’s figures. This neighborhood also experienced slower sales with extended periods to sell, at an average of 56 days, a 47% increase from last year. These observations cumulatively suggest that Downtown Miami is currently favoring buyers, indicating the market’s current status as a buyer’s arena.

Looking forward, the prospect of a heightened supply looms on the horizon as a pipeline of new construction condos readies for entrance. The trend of slower sales throughout 2023 compared to 2022 is undeniable, with anticipated continuation as new construction condos, including notable projects like Aston Martin Residences, prepare to make their mark this year.

Downtown Miami’s metamorphosis extends beyond supply and demand dynamics. The area is poised to witness an influx of short-term rental towers and condo hotels, transforming the landscape into a more investor-crowded arena, which could impact the future resale value. This paradigm shift underscores the need for strategic insight and planning as the market navigates this wave of redevelopment and expansion.

Downtown Miami Q1 & Q2 2023 Market Summary – For more information visit our Neighborhoods Statistics Page

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ADVICE FOR SELLERS

Considering the influx of new construction, it’s crucial to recognize how this can directly affect your local market. Similar trends have revealed that short-term rental buildings and condo hotels often face extended selling periods due to intensified competition from internal and external resales.

ADVICE FOR BUYERS

Downtown Miami is on a trajectory focused on fostering a transient lifestyle. For investors, it’s crucial to recognize that this might not be the most favorable market due to intense competition. Exploring other regions could offer greater stability and appreciation potential if you’re considering an investment in the Urban Core. Reach out to our team, and we’ll be more than happy to assist you in identifying the optimal areas and buildings for your next investment property.

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FAQ

These are the most commonly asked Google Real Estate Related questions

I see the market is a buyers market, what does that mean?

A buyers market is a market in which there is more supply than demand. Therefore buyers have an advantage. A balanced market is a market in which neither buyers nor sellers have an advantage.

Do you think we should wait for interest rates to go down before buying a home?

Many buyers are waiting for rates to come down. If the rates will come down, many buyers will become active again or current owners might look for alternatives. This will create market activity again, which has been slow in the last few months.

For people that are waiting for interest rates to come down, we have some advice. By the time rates go down, prices will go up again. If you want to buy a home anywhere in the next year, buy it now and refinance later. If interest rates don’t come down it’s because inflation is still high and that’s mostly a consequence of a hot housing market so this also means housing prices will continue to go up. So in almost all scenarios, you are losing by waiting for interest rates to go down.

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