Miami is on pace to set a record for single-family home sales in 2015, besting last year’s record. The National Association of Realtors reports that condominium and single-family existing home sales for 2015Q3 were up over last year, and median sales prices for both increased. Months’ supply of single-family units remains on the tighter end of healthy, at 5.1 months of inventory, while condominium supply is indicating more of a buyer’s market, with 8.7 months of inventory. According to data from CraneSpotters.com, there are 116 towers under construction in Miami, with 11,500 units. 214 additional towers with 29,500 units are in preconstruction. Major projects, like the $1 billion Metropica, are extending outside of the city proper. Pricing pressures will be relieved as these projects are completed. Single-family construction is currently at a post-crash high.
Job growth in Miami has been particularly pronounced in higher-paying sectors like professional and business services, financial activities and construction. Teamed with rising home values, this will continue to boost area income. A CBRE report recently found Miami to be the seventh most popular global capital destination for commercial real estate in the first half of the year, supporting property value and construction jobs. PortMiami and Port Everglades saw new cargo records for the budget year ending this September, attesting to Miami’s importance in international trade.
The NAR reported that 68 percent of Miami international buyers in 2014 were Latin American. These transactions will be impacted by exchange rates. Local government and real estate firms are vying to attract more Chinese investment to fill in for any loss. The EB-5 visa program, which incentivizes foreign investment in exchange for residency, is set to expire on December 11. This could impact regional foreign investment.
Click here for the complete Miami MSA Regional Economic Update: Miami 2015Q4.