According to ONE Sotheby’s International Realty’s year-end report, 2017 will be a great year to buy a luxury home in Miami. Long-term trends indicate that Miami is still a dominant gateway city, and the abundance of luxury homes is expected to make prices decrease from $1 million up to $5 million.
Anthony Graziano, Senior Managing Director for Integra Realty Resources, who prepared the report, believes that people had delayed their home buying as a result of the Presidential election and uncertainties in the economy, but now that time has passed buyer confidence is back on the rise. Graziano, also believes that people are motivated buy this year with the expectation of higher interest rates, which are expected to increase twice in 2017.
The report shows that the majority of Miami-Dade single-home sales are expected to be in the under-$1 million market, forcing sellers of higher-priced homes to lower prices. For 2017 the leading neighborhoods are still Brickell, Downtown, Edgewater and Midtown. However, One Sotheby’s expects this to change by 2018 with new units shifting to Miami Beach, Sunny Isles and Hollywood Beach.
The overall condo market is projected to slow down and Latin American buyers are expected to drop while domestic, Canadian and European buyers will increase. The loss of Latin American buyers will drop waterfront condo prices by another 5%- 8%. Non-waterfront condos are expected to lower in prices by 3%making it a good time to buy a resale or investment condo as well.
The market in Broward County is also projected to have continued growth. Broward homes, in large part because of their value are priced 30%- 50% percent less than comparable homes in Miami-Dade.
Overall, a positive economy is expected overall in the state, as Florida was one of four states in 2016 with 3% employment gains driving the region to higher financial success.