When talking about a hot city like Miami, there's always a debate about whether it's better to buy or rent. A lot of people are afraid to buy today. I would be more afraid to rent and see the prices increase significantly. Clients ask me - "Katya, home values have increased so much that they are ten times more than medium South Florida yearly income! Doesn't it mean the correction is coming?" They forget that the median yearly income we see differs from reality. Money flowing in Miami was earned somewhere else. We see a lot of unreported income, which was always the case in Miami, but today reached new sky limits.
When looking at prices in Miami, pay attention to rent prices. In 2020, home prices rose while rent prices stayed about the same. This meant that home prices were somewhat speculative. Today, home prices and rent prices are rising at the same time. This is a clear sign that prices will stay high for a long time and no long-awaited "market crush" would affect it. South Florida has the second-highest inflation rate in the country.
Housing and rent costs are big reasons inflation remains hotter here than almost any other area. Fewer homes and condominiums for sale, and demand from people moving into Florida have kept prices and rents high. How did this affect me personally? Some realtors in medium mid-market have struggled, but in my niche is the luxury market, with new developments coming, so I'm busy as always.
In conclusion, Miami's real estate market remains vibrant, with strong demand and rising housing and rental prices. Despite concerns about a potential correction, the current market conditions suggest stability and sustained growth. As a realtor specializing in luxury properties, I'm optimistic about the future and excited about this dynamic market's opportunities. So, if anyone asks me whether it's a good time to buy in Miami, my answer would be a resounding "yes."
Contributing Author
Katya Molina
Real Estate Advisor
Luxury Waterfront and Condos