How is the Housing Market in Miami?

How is the Housing Market in Miami?

  • Mariana Garber
  • 10/16/22

Since July 2020, the housing market in Miami has seen a significant comeback. Housing demand is high, as buyers have more freedom to choose where they want to work due to remote jobs. Because of this, many people flock to the gorgeous shores of Miami to live in luxury! Miami’s inventory can’t keep up with demand, which has caused an increase in home prices. The hot seller’s market conditions are perfect for people interested in selling, as they’re sure to receive a good offer.

Although the competition may be difficult to navigate through for buyers, investing in Miami Beach real estate is worth it; properties in Miami have appreciated in the past year. Overall, the housing market in Miami is strong, although buyers and sellers alike should pay attention to local market variations in select neighborhoods of the city, namely Brickell, Coconut Grove, and Miami Beach. Here’s everything you need to know before you invest in the area.

A Statistical Overview of the Housing Market in Miami

This statistical overview provides a quick picture of the housing market as it is today. After reviewing this list of stats, read on for a description of why they’re important. According to Miami Realtors:

Miami Single-family Homes Market

The median sale price of a single-family Miami home was $570,000 as of July 2022, which represents a 10.7% increase compared to a year ago. Additionally, the number of available single-family homes has increased by 26% compared to last year, with 3.1 months of active inventory available. The median time to contract was 17 days, while the median time to sell was 62 days. The number of closed sales decreased by 27.2% between July 2021 and July 2022.

Miami Condos and Townhomes Market

The median sale price was $380,000 as of July 2022, compared to $340,000 the year before. This is an 11.8% rise in median sales price. The amount of active inventory decreased by 26.3%, with 3.3 months of inventory available on the market. Finally, the median time to contract was 20 days, and the median time to sell was 64 days. The number of closed sales also decreased by 39.1% from the previous year.

Miami Housing market trends

The housing market in Miami is very large; the Miami-Dade county population is 2.7 million, making it the seventh most populous county in the U.S. Although home sales declined between July 2021 and July 2022, this is only because 2021 was an anomaly.

As seen above, the demand for single-family homes is on the rise, and with sales prices rising, the housing market for these types of properties is in the seller’s favor.

Miami was the second most expensive market in the county as of October 2021, which is connected to its demand. There are several factors drawing people to Miami: its proximity to incredible beaches, great weather, and booming business in technology sectors.

In-depth View of Brickell's Housing Market

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Brickell real estate is a bustling Downtown neighborhood, home to several businesses. The homes here are exquisite and pristine, with the most luxurious pieces of real estate listed at over $30 million. Many of the properties for sale are larger single-family homes, although there are condos available as well. The sales price for properties in the area is on the rise, which makes it an excellent time for sellers to list their properties. Buyers may want to begin their search before prices climb even higher.

An In-Depth View of the Coconut Grove Housing Market

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Coconut Grove real estate in Miami is highly sought after for its lush and plentiful green spaces and luxury homes for sale. The median sales price for homes in this market is just under $2 million, and currently, there are only 14 single-family homes for sale and 22 condos. Homes here spend an average of 83 days on the market.

An In-depth View of the Miami Beach Housing Market

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Miami Beach is a small and friendly island town that is very walkable and enjoys cooler weather due to the surrounding water. Buyers looking for Miami Beach real estate may want to start their home search on this island if they’re in search of paradise. The median sold price for Miami Beach homes is $680,000. Homes are averaging a sale time of 85 days, which is down considerably compared to last year. If you want to take advantage of the favorable market conditions, it’s best to act quickly.

Investing in Miami

There are several factors at play that make Miami a great place to invest. For one, the demand for rentals will continue to increase, as people in the area rent properties as a more affordable option than home ownership. Already, more than 70% of the Miami population rents out their home. High demand creates a lower vacancy risk, which means you can expect a steady cash flow. As inventory remains insufficient for buyer demand, people who are capable of buying will also resort to renting as they wait for properties to be available.

Interest in Miami homes for sale also reaches beyond the city, as there is a strong international market. In fact, 54% of foreign buyers bought in the Miami Metro region. This, coupled with a high percentage of renters and its popularity as a tourist destination, makes it a good place to invest. The pressure of the large and unmoving retiree population, as well as the limited space, shrinks supply and raises prices.

The Miami real estate market is quite large, larger than the city itself, and its size helps it stay strong and thriving. With the economy stable after the turmoil that 2020 caused, the market has been positively impacted by people working, vacationing, and searching for homes. Buyers can also expect their property to appreciate in value, and Miami itself nationally ranks in the top 10% for appreciation of real estate.

Ready to search for a home in Miami?

The Miami housing market is strong, putting both buyers and sellers in a good position to sell or invest. If you’re interested in Miami Beach, Coconut Grove, or Brickell real estate, contact local expert agent Mariana Garber to guide you through the process.

*Header photo courtesy of Shutterstock

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