The Miami Real Estate Crash 2017

Is this a correction or are we heading for a crash?

We have all seen the Miami real estate reports that are very bearish on the market. They warn you to stay away from Miami real estate with the most dramatic subject lines. Many of these reports are written by individuals who 1. Don’t work in Miami real estate and 2. Don’t bother to differentiate between different Miami areas or price ranges. They quote a few Miami realtors and make their own story, created to gain readers’ attention, likes, or comments.

So when they say the Miami real estate market will crash in 2017…you need to take this with a grain of salt

Are we heading towards a Miami Real Estate Crash?

I am a Miami top producing real estate agent who is known for his market analysis, reports and investor guides. I represent both sellers and buyers and I am known for my honesty. I have been quoted by Curbed Miami, The Real Deal, The Miami Herald, CNBC, BBC World and Bloomberg.


In my professional opinion we are not dealing with a crash, but rather with price corrections

This is especially true for condos. In the single-family home market we see little to no price corrections. The market grew steadily and with a limited supply of properties we don’t see the massive amounts of inventory as in the condo market. The price corrections that need to happen are almost uniquely reserved for the ultra-luxury end of the market.

Miami Real Estate Reports, How to Know the Good from the Bad?

In my professional opinion we are not dealing with a crash, but rather with price corrections

Simply put it is a matter of supply vs demand. The supply is very high with many owners wanting to sell. The demand is still present but cannot keep up with supply. In order to bring balance back to the market prices need to decrease. This will bring more demand and the market will regain its equilibrium.  

Prices have seen a slight decrease and will see some further corrections in the year to come. This does not mean nobody will gain profits anymore. I have managed to get some record condo prices in the last few months. You will need to list at the right price and sellers need to know what the market conditions are. If you price your unit at market, it has a really high chance of selling within a few months

Some condo markets will correct more than others. Brickell will correct more than the Beach and the Beach will correct more than places like Coconut Grove, which may show no signs of price change at all. Its of the utmost importance people understand ‘months of inventory’ first.

Price Corrections within the Miami Condo Market – The Long Version

The Miami condo market has been a hot topic in the last few years. Many buyers from all corners of the world flocked into Miami to buy real estate. This enormous popularity of Miami condos led to many brand new condos being developed as well as rapidly increasing prices. Many of these buyers were investors that wanted to ‘flip’ their units after they are delivered. As many owners are putting their units up for sale again, they notice that it is hard to sell in a market with high amounts of inventory and inflated prices. In addition to that, many brand new condos (especially in the Brickell/Downtown area) are very generic products. If your condo unit does not stand out in the crowd and can be exchanged with many others you can imagine the pressure to lower the prices.

Even though there is still a healthy demand for Miami condos, many sellers are unwilling to lower their prices. They are either oblivious for the fact that the market has softened or they do not want to loose part of the invested money. This however is a sellers market and those sellers who dont adapt their prices will not sell.

What is needed in this market are price corrections!

How does this differ from the 2007/2008 Crash?

During the last cycle many condo owners had a full mortgage on a property they couldn’t afford in the first place. Financial institutions were less regulated than at this very moment and many owners defaulted on their payments. Many condos were foreclosed and sold for record low prices. After this crash we all learned our lesson and financial institutions are seeing increased requirements and regulations. Moreover a buyers need to buy with a down payment of at least 20% while many investors didn’t finance their properties at all therefore being less inclined to sell and to crash the market

David Siddons | +1.305.508.0899 |

David Siddons is a top producing Miami real estate agent who loves to talk real estate and analyze the market. Please contact David for all your Miami real estate inquiries or concerns.


These are the most commonly asked Google Real Estate Related questions

1. What are the Current Best New Condos in Miami?

If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023

2. What is the best New Construction Condo in Fort Lauderdale?

In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.

3. How can I compare the new luxury construction Condos to the best existing Luxury Condos in Miami? 

Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!


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David Siddons
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