After the year we’ve had, predicting anything about the upcoming year feels risky, but I’d like to try to make a few real estate forecasts using current trends to guide me. My experience on the ground is pointing to continued strength for South Florida real estate as we look to the new year. Favorable mortgage rates are certainly enticing fresh buyers to jump into the already saturated waters as home prices continue to rise. Signed contracts have increased by 12.2% for all single family homes in the last year and from what I can tell, we will continue to see strong migration from the Northeast corridor in 2021.
Covid-weary buyers seek more friendly climates and significantly friendlier tax regulations in their travels south. Miami has always drawn attention from Northeastern buyers but is now also seeing a significant rise in interest from the West Coast. Californians are adding to the “frenzy” over South Florida real estate along with international buyers from countries along our borders like Canada and Mexico. It’s great to work with domestic and foreign buyers from all corners of the world!
My new buyers will be welcomed with historically high median home prices which reached a historic high in September at $425,000. Not only that, inventory is tight with the number of listings falling by 9.6% from October 2019 to October 2020. What the buyers are searching for is evolving – for the longest time buyers looked to Miami for second or third homes – today more and more are targeting our shores for primary residences. As travel restrictions ease, experts are predicting momentum to grow from energized foreign buyers fresh from lock-down.
Clients who already own in the 305 and surrounding areas will benefit from all this activity as values are locked in and cultural enhancements like the art community strengthen. Successful art galleries are going where the collectors are. So while 2020’s Art Basel was cancelled altogether, look to a new year of new perspectives as more art becomes available in our neighborhoods. This is just one of many exciting new changes we can expect in 2021. The future is looking bright for my buyers and sellers! Reach out for your custom real estate plan to fuel your New Year Resolutions.