There’s a reason Miami is nicknamed “Magic City” and it has nothing to do with magicians. Rather, it pertains to the city’s vibrancy and color, its ability to magically transform an ordinary day into something extraordinary. Perhaps it’s the crystalline beaches with waves gently lapping at the shore. Maybe it’s the vast shopping options or the beautiful people that call the area home. Whatever the case, Miami is known worldwide as a idyllic destination for living and traveling. Here’s why.
Advantages of buying a condo or house in Miami
- Desirable weather
- Inexpensive real estate
- Innovative cuisine
- Thriving entertainment industry
- World-famous beaches
- Top market for international buyers
- Exciting nightlife
- Gateway to the Americas
- Top pediatric hospital in country
- 4th largest U.S. school district
- Cruise capital of the world
- Two national parks
Current condo market in Miami
After enjoying years of a thriving condo market, Miami is facing a condo bust. The ominous sound from the housing crash looms loud in Southern Florida. For buyers, this is excellent news. Developers are slashing prices and offering remarkable incentives to potential buyers, including access to private jets and lowered deposits, in an attempt to initiate sales.
Between 2004 and 2008, builders brought about 21,000 condos in the downtown Miami area courtesy of inflated prices and easy financing. For years, these residences sat empty. Despite having taken precautions to insulate themselves from further fallout, developers feel the impact. In the latter part of 2015, the number of condos available in Miami Beach increased by a third while the sales price dropped by 6.6 percent. Meanwhile, dozens of new condo projects are being canceled.
Much of the depreciation relates to foreign investors. While the U.S. dollar remains strong and currencies abroad weaken, the buying power of foreign investors declines. Intensified global economic conflict and slipping oil prices only amplifies these effects. Although buyers from New York and China are increasing the demand of such properties as a second home, they don’t outnumber the people from South America who are suddenly dropping out of the real estate market in Miami.
Whether the purported bust lasts is anyone’s guess. Investors doubt this round of cutbacks will be as substantial as those in the past. However, the incentives for purchasing a condo in Southern Florida remain strong, making this an optimum time to buy for those who have been on the fence.