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.
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.