Over the past several years, Miami real estate professionals have seen some massive growth in the home prices in Miami. However, as with any increase in this business, there comes a time when things start to stabilize, and it looks like that’s what is happening right now. The home prices from June 2015 are beginning to level off. This should not be seen as a bad thing at all. It’s a natural correction that the market needs to go through to remain on the right track. This ensures that the prices do not get to the point where the number of buyers is too limited, for example.
The price of homes in Florida has been rising steadily since the end of the downturn. The recovery period has been very good to Florida, as it has with many other states. In fact, many states in the country have seen a significant return to the strength of their real estate market. There have been steady increases in home prices for 40 months and counting.
What’s Happening to Slow Things Down?
Data shows that there is still growth; it just happens to be slower. Between May and August of 2015, there was a growth of 0.3%. Even though it is an increase, it is the lowest increase in the year so far.
In addition, the number of homes for sale in the area is starting to shrink. However, the number of buyers is certainly not shrinking. If anything, it is growing stronger. People are very excited about buying condo in Miami. They are simply finding fewer properties available, which could certainly lead to a seller’s market, and that could help to keep the prices where they are, or keep them rising at a slow pace.
While it is possible that the prices could increase significantly in a buyer’s market, we’re unlikely to see a big spike. As mentioned, the market is trying to correct itself right now. What is more likely to happen is that the increased demand for properties will encourage more sellers who have been on the fence to list their properties, knowing that they have a very good chance of selling quickly and of making a good return on their investment. This is slowly but surely getting people more interested in selling their properties in Miami.
What does it mean for buyers and sellers? It means that right now is probably a very good time to start looking for a property in South Florida. Since the prices are not getting out of hand, it is possible to find some quality properties. Just keep in mind that there are quite a few others out there doing the same thing, so you don’t want to get into a bidding war over a piece of property if you can help it. Look for properties that are new to the market. Though there are fewer homes available now than in the past, there are still plenty of options that might be just what you need.