5 predictions for the Miami real estate market in 2023
The year 2022 was very good for the Miami real estate market. But what does 2023 hold? We rounded up some of the predictions that real estate agents state.
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United States down, Miami up.
The US real estate market is expected to cool off after a period of big gains. However, Miami is different.
Both the Knight Frank and Goldman Sachs reports predict strong positive growth for the Miami real estate market.
In almost every category, Miami inventory is low and demand remains steady. Therefore, it can be said that prices will continue to rise.
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The luxury market will reach new limits
Due to restrictions in California and New York, such as the taxes required on the purchase of a mansion, the richest 1% in the country are looking towards Miami.
Luxury products are coming in at prices of $70 million, which are selling well. If we talk about a property with sea shore and in gated communities, the prices are over 3000 dollars per sqft. This is approximately $30.000 per square meter.
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There will be a downward sector: old properties.
It must be considered that there are certain sectors that are slowing down. Among them, you can see old houses or those in need of remodeling. This is because incoming buyers prefer the comfort of new.
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Be careful with these neighborhoods: Brickell and Sunny Isles.
Because they are two neighborhoods that concentrate the largest number of buildings, the inventory of these areas reaches 30 months. This is a point to consider if you are someone who wants to sell in these areas, because luxury buyers will prefer new construction.
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Change the focus of Miami.
Before, Miami associated with investors from Latin America, who were looking for a place to put their money safely. Today we can see a strong migration from other states, with people looking to live in Miami (and therefore looking for a primary residence). It went from being a tourist city to one of the great engines of the American economy.
From this change you can see more luxury apartments that pretend to be a primary residence. This is made attractive by today's buildings, which have high ceilings and feel spacious.
Remember that if you are interested in buying a property in Miami, it is best to have an experienced real estate agent. Schedule a consultation with us, and we can recommend properties that fit your goals.
This blog is adapted from the David Siddons Group video: Miami Real Estate Market Predictions for 2023.