The recent downturn in real estate market affecting Miami has created a difficult situation for many homeowners and investors. The rapid appreciation of the years 2003-2006 created a peak activity that could not be maintained for long, and now prices are expected to remain stagnant after the decrease in property values began in 2007.
The price decline however is not evenly split across Miami-Dade; some areas have fared better than others. One of the hardest hit areas is upscale Bal Harbour, where the average property price declined by 20%-23%, but keep in mind the average price for a 3 bedroom single family home is $1.9 million, and a 2 bedroom condo is about $700,000 average.
For modest Hialeah on the other hand, it was not as bad: the average property price declined 4%. Sunny Isles, with its condo towers clustered by the beach, took a -5% hit.
Miami Beach real estate values experienced a 9% decline, which is bad enough, but much better than Key Biscayne (-18%) and Surfside (-12%).
Miami real estate suffered a 5% decline in property values in 2007. At the moment, one of the biggest concerns is the condo market with the amount of condos that will be completed in 2008. There's been a lot of speculative activity in the condo market in the last few years, and many are predicting further decline in prices through 2008.
At the moment the average price of a 2 bedroom condo in the Downtown Miami area is at $520,000, and despite all predictions, prices have not plummeted, although caution is advised, since many investors will be trying to unload many condos soon. On the other hand, foreign investors are coming in, taking advantage of the weak dollar, an alleviating factor for this market.
The local economy and the job market are other factors to take in consideration. The slowdown in construction, increasing oil prices, trouble in the financial markets and the national economy, explain the slower pace of employment growth in Miami-Dade in 2007.
Even at its lowest point, however, employment growth is expected to grow by more than 7,000 jobs. City officials believe Miami's economy is not in bad shape, new jobs are being created in tourism. Unemployment rate in Miami is lower than the rest of Florida and the country, and a local economy diversifying from tourism to health care, trade and banking, will have a positive impact in Miami real estate.
For residential rentals and Miami real estate in general, contact the local expert in South Florida, Miami realtor Orlando Garcia with Ocean View International Realty, visit SellHousesMiami.com for free MLS searches, featured homes for sale, mortgage calculators and tips and advice for buyers and sellers. Give us a call toll free at 800-516-2144