Catherine Rodstein Blog   Real Estate Blog

2016 kicked off with buyers, especially condo, wondering if this is the best time to buy based on market predictions. Sellers in the median single family home market are wondering why sales have slowed over the recent quarter despite increased prices overall since 4Q 2014. The uber luxury market is seemingly unchanged as inventory and number of buyers remain in healthy balance.

What will 2016 look like? The Miami condo market is in correction, an adjustment period following the surge in prices and sales of 2013 into early 2015 spurred by foreign buyers in economic uncertainty and hedge fund investors. Newly constructed and recently converted condos that began hitting the market in 2015 throughout South Florida will continue over the next few years with heavy concentration Downtown Miami to Edgewater and north to Sunny Isles. Fewer new developments will surface, developers will raise commissions to sell their remaining units. You will see some price adjustment primarily in the resale median market ($300,000 - $1M), some increased buyer skepticism over the escalated prices of 2014 and 2015, and reduced buyer urgency as inventory increases. Increased supply = reduced rental rates, especially in neighborhoods with a heavy concentration of new buildings.

The Miami and Miami Beach single family home market outperformed the condo market from 4Q 2014 to 4Q 2015. As median condo prices declined up to 9% in areas of Miami, single family home prices rose. 2016 indicators see a slight rise in single family home prices overall despite the recent slowdown from Dec 2014 to Dec 2015. Expect to see lenders take more chances in 2016 on primary loans due to the likelihood of the federal reserve increasing rates in the not to distant future. The high end luxury market, both single family and condo, remains strong as the balance between buyers and available inventory stays in balance. Especially the over $3M market that saw record breaking sales in Miami and Miami Beach waterfront homes, as well asoceanfront luxury condos like Faena House, the Surf Club Four Seasons, Miami Beach Edition, Ocean House, Regalia, and St Regis in Bal Harbour.

Faena House Penthouse sold for $60 million in 2015.

Miami in itself is adjusting and growing as a metropolis, with continued growth in popularity. With rising traffic and congestion, neighborhoods where people can live and work, or work in close vicinity, like Wynwood, Midtown, Brickell, Edgewater, and Coconut Grove have surged in popularity. Hence, the mission to link these emerging neighborhoods is at the forefront. As the rule of supply and demand prevails, expect some further tightening in 2016 especially in the condo market with high returns in the retail, hospitality, and hotel market. Although the South Florida Real Estate market outpaced the nation over the last 2 years, 2016 is expected to remain steady overall but offer better opportunity for buyers.

 
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