We discussed about the real estate market in the US in our last blog dated October 4 and we now think it is necessary to detail the market in Florida
– 2008 : following the subprime crisis, real estate prices in Miami, like everywhere in the United States, collapsed, thus investing in real estate and have a consequent return or even indecent was more than easy.
– Since 2012, the prices of properties have again increased sharply.
– Since 2015, property prices have stabilized but remain high, although they have not returned to pre-recession levels.
– Today, we are leaving a market with prices dictated by sellers affecting the overall level of sales and resulting in an increase in supply and inventory. This situation encourages sellers to be more realistic and agree to return to more market-friendly prices, effectively opening the door to a possible and normal buyer bargain. The trend is moving towards a BUYERS’ MARKET.
A buyers’ market is a real estate market characterized by a greater number of property sellers than buyers. Buyers have the advantage in this type of situation. They now have more opportunities to find the house of their dreams and allow themselves to negotiate the price by keeping the possibility to retract if the seller is not conciliatory.
As the properties for sale are numerous and buyers are spoiled for choice, it is necessary that the selling price is competitive and that the property stands out from others to be sold on the best terms and as soon as possible.
And we are comforted in this analysis. Indeed, buyers today are sharper than before when buying a property as part of an investment, and supply is greater than demand.
The principle is to buy well, manage the work and ensure the possibility of resale in the best conditions by analyzing the local real estate market. Because in Miami as in all cities in the United States, the value of a property can change from one neighborhood to another, or even from one street to another.
Asset managers in real estate and in particular PRIVEAST are more and more professional and know perfectly the markets today stabilized. However, the market remains bullish, with growth ranging from 8% to 10% per year *.
Therefore we can think that a regularization and that’s why a stabilization of real estate will take place in the coming years, allowing to rely on more stable and more reliable values in the context of an investment.
It is even more important today to buy well to ensure a resale at the real market price.
– 2018 : it’s still possible to invest and make
GOOD DEALS IN MIAMI!
* Sources: Alain Forget, head of sales and business development at RBC Bank in the US