Latest news with #MiamiRealtors
Newsweek
2 days ago
- Business
- Newsweek
Miami Housing Market Sees South American Takeover
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Foreign homebuyers are increasing their presence in Miami, even as concerns around the impact of the Trump administration's tariffs on the U.S. economy grow and Florida experiences a deep market correction. Buyers from outside the United States represented nearly half (49 percent) of all buyers of new construction in the Miami metropolitan area in the 18 months ending June 2025, according to a recent report by Miami Realtors. A vast majority of these buyers (86 percent) came from Latin American countries. "The demand from Colombia, Mexico, and Argentina isn't slowing down, it's accelerating," real estate broker Ryan Serhant, founder and CEO of Serhant, said in the report. This increase may have "something to do with global uncertainty, in particular in South America, where there is high inflation and political turmoil," Yuval Golan, founder and CEO of Waltz, told Newsweek. "To combat this, Latin Americans may be seeking to preserve their wealth in USD through U.S. real estate." Why Are So Many Foreigners Buying New Homes in Miami? According to Golan, a combination of convenience and financial incentives is pushing internationals toward buying new builds in the Magic City. "New development buildings often offer amenities like pools, gyms, dog parks, and may even have front doormen. A new build typically has fewer maintenance issues, making it easier to manage from abroad than older inventory," he said. This is particularly true considering the current headwinds hitting the Florida condo market. The state, especially its southwest region, has struggled with a sudden rise in condo inventory in recent months following the implementation of new building safety regulations, threatening higher fees for condo associations and owners. Under the new rules, introduced after the Surfside collapse of June 2021, condo associations in Florida are required to conduct regular inspections on aging buildings and fully fund future repairs. These requirements make newly built condos a safer investment for international buyers than many older condos in poor condition in the city. Another reason making new builds so appealing to international buyers, Golan said, is that some builders are offering hefty discounts to those willing to invest in the condo project before it's completely built. This kind of incentive has become more common among Florida developers in recent months, as sales have slumped and inventory has grown. The Trump administration's policies are also making investing in the American real estate market more interesting for international buyers. "This administration encourages real estate investment with tax incentives such as the Big Beautiful Bill, which offers bonus depreciation on real estate, among other benefits," Golan said. "There are also programs that encourage wealthy individuals around the world to invest in America to obtain a visa." How the So-Called 'Capital of Latin America' Is Keeping Its Nickname Miami already has the largest proportion of Hispanic and Latin American residents in the U.S., accounting for about 70 percent of its population. It's no surprise, then, that the city attracts many real estate investors from Latin America. "For many people living in Latin America, Miami is the bridge between their home country and the United States, where there are many cultural ties. This gives buyers from these places a sense of familiarity with their home country cuisine found in the city, and they can hear their language spoken," Golan said. "It builds trust because these buyers could very well have relatives who live in the U.S. or, at the very least, be able to speak their native language with real estate agents, contractors, property managers, lenders, and other people they would need to interact with to buy a property." Condo buildings in downtown Miami, Florida, as seen on August 1, 2025. Condo buildings in downtown Miami, Florida, as seen on August 1, there is more than just familiarity and an established community. "Miami is a desirable location for a variety of reasons. It has no state income tax, and many businesses are moving to Miami, bringing jobs for new residents who need housing. Miami is also a tourist destination, which brings money into the economy, and with Airbnb becoming increasingly popular as an alternative to hotels, people may buy condos to rent to these tourists," Golan said. International buyers—and those from Latin America, specifically—also seem to believe in the stability of the U.S. economy and the country's housing market "over long-term horizons," Golan said. "The USD has been one of the globally recognized currencies and is more stable than currencies in many parts of the world. In addition, U.S. real estate has shown strong performance over the last half century, so this, combined with preserving foreign-earned money in U.S. currency in the form of an appreciating asset, is appealing."
Miami Herald
30-07-2025
- Business
- Miami Herald
The financial gap between renting and owning has grown. In Miami, that's an issue
With high mortgage rates and stubborn home prices, many Miamians are questioning whether homeownership is still within reach. For many, it is not. In May, owning a single-family home cost an estimated $2,086 more per month than renting one in Miami-Dade County, according to data from Miami Realtors. In May 2018, seven years ago, that gap was just $138. For condos and town houses, today it costs $811 more a month to own than to rent, but even that has changed since 2018, when owning actually was cheaper, costing $233 less per month. Does that mean renting is a better financial deal than owning? Not really, real estate experts told the Herald Editorial Board. Buying is still a better decision. But because many people cannot achieve that piece of the American dream, they are also losing out on a major long-term benefit of homeownership — achieving and maintaining middle class status. That's also the focus of the Editorial Board's series The Shrinking Middle. 'Homeownership is the best way to accumulate wealth,' Miami Realtors Chief Economist Gay Cororaton said. Although owning a house may cost more monthly, homeowners build equity over time. With home values dramatically rising in the past years, the 15-year equity on a single-family home in Miami-Dade was more than $550,000 based on the median sales price in 2024, according to Miami Realtors. While your rent may change, mortgage costs are fixed as your home becomes more valuable — assuming it does. Of course, that doesn't take into account how the high price of property insurance has made homeownership costs more volatile even for longtime owners. Still, Cororaton said, 'If you can afford it, don't think that it's cheaper to rent.' That's if you can afford it. The cost gap between renting versus owning is an indicator that many people are left out of homeownership, forced to rent because they cannot afford to own, which, in turn, drives up demand and prices for rentals. That's bad not only for families' financial future, but also for Miami-Dade. Homeownership typically means more community and civic involvement. Areas with more homeowners tend to have less crime, said Eli Beracha, director of the Tibor and Sheila Hollo School of Real Estate at Florida International University. 'When you own a home, you simply care about a neighborhood,' Beracha told the Editorial Board. Based on a median single-family home sales price of $675,000, the monthly cost of a mortgage, plus taxes and insurance, is $5,656, according to Miami Realtors. The median rent for a house, as of May, was $3,600, which isn't necessarily affordable, either. Miami has become a hub for millionaires since the pandemic, but more than half the people in the county are living paycheck to paycheck, the Herald reported. A family of two adults and two kids needs about $90,000 per year to afford basic needs, according to United Way. Even if you make enough to afford the basics, homeownership might still be beyond your reach. Only 3% of single-family homes listed for sale at the end of May were what Miami Realtors consider 'affordable,' meaning they cost less than $400,000. In 2019, those homes represented 30% of listings. Is the option then to wait until prices go back to what they were pre-pandemic? Probably not. The Fed is expected to resume its interest rate cuts in the second half of the year, according to Cororaton, and home sales have dropped and prices have stabilized after a post-pandemic high. But Cororaton and Beracha don't believe prices will drop significantly. That probably means that many people will continue to be locked out of homeownership and subject to price fluctuations in rents that could eventually push them to leave South Florida, where the American dream of homeownership continues to elude a large share of our population.
Newsweek
05-06-2025
- Business
- Newsweek
South Florida Homes for Sale Nearly Double as Residents Offload Properties
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Inventory in Miami-Dade County, which includes one of the most expensive metro markets in Florida and the country, rose by over 43 percent in April compared to the same month a year earlier, according to data from Miami Realtors. This surge in for-sale homes could be a telltale sign of an impending cooldown in Miami-Dade's housing market, even as prices continue to rise in the county at a rate five times faster than the national level, according to Redfin data. Why It Matters Home prices skyrocketed in Miami-Dade and the rest of Florida during the COVID-19 pandemic, as historically low mortgage rates sparked a homebuying frenzy and the rise of remote work fueled mass domestic migration across the country to more affordable states offering a high quality of life. In Miami-Dade, the median sale price of a home in April 2020 was $330,000, up 8.2 percent from the same month in 2019; in April 2025, it was $585,950, up 5.6 percent from the same month in 2024, according to Redfin, and nearly double what it was five years prior. But while prices are still rising in the county, dwindling home sales and increasing inventory suggest that even the popular Miami-Dade is about to experience the same "correction" that has already hit much of Florida, where the median sale price of a home was down 3.2 percent from a year earlier in April. The county, which has long been a strong seller's market, might soon switch in favor of buyers. What To Know According to the latest data shared by the Miami Realtors, the total number of active listings in Miami-Dade increased by 43.3 percent year-over-year in April, rising from 13,094 to 18,765. That represents significantly faster growth than the national level reported in the same month, with inventory nationwide up 20.8 percent year-over-year. However, there are still not enough homes for sale to match demand: inventory is now 18.4 percent below April 2019 levels, at 22,984. Single-family homes in a Miami residential neighborhood as seen on May 10, 2022. Single-family homes in a Miami residential neighborhood as seen on May 10, inventory of single-family homes, which represents the majority of the U.S. market, increased by 43.04 percent in April compared to the same period a year earlier, rising from 3,864 to 5,527. Condo inventory rose by 43.42 percent year-over-year in the same month, for a total of 13,328 listings. Both markets have a number of homes for sale at levels below those of 2019. The market for single-family homes, despite growing inventory, remains balanced, with a 6.3-month supply. In the condo market, buyers already have the upper hand. According to Miami Realtors, there is currently a 13.7-month supply, meaning that buyers have a wide range of options to choose from and significantly more negotiating power. A balanced market between buyers and sellers is typically considered to offer a supply of between six and nine months. Sales in South Florida, however, are dwindling despite rising inventory levels. A total of 2,133 homes went under contract in Miami-Dade in April, according to Redfin, down by 19.1 percent compared to a year earlier. Those homes spent an average of 81 days on the market before being sold, up 15 days from the previous year. And yet, prices have not come down. "The rapid price growth fueled by fierce competition during the pandemic has left home prices elevated in many areas," Hannah Jones, senior economic research analyst at previously told Newsweek. "With mortgage rates still high, many prospective buyers are waiting on the sidelines for homeownership to become more affordable." Other South Florida counties are experiencing a similar surge in inventory and declining sales. In Broward County, active listings increased by 46 percent year-over-year in April, while Palm Beach County saw a 30 percent rise. In Broward County, sales were down 16.4 percent year-over-year in the same month, according to Redfin; in Palm Beach County, they were down by 10.7 percent. Overall, South Florida's housing inventory has nearly quadrupled since 2022, reaching approximately 52,000 active listings, due to a combination of several factors. In part, it is because the Sunshine State has been building more new homes than any other state in the country in recent years, spurred by the sudden surge in demand during the pandemic. In part, this is because owners who were previously locked into their homes by high mortgage rates have now given up waiting for lower monthly payments and are putting their homes on the market. Elevated mortgage rates, high home prices and rising housing costs—including homeowner association (HOA) fees and home insurance premiums—are also playing a role in the piling up of unsold inventory in the state's market, keeping buyers on the sidelines. Some existing homeowners are deciding to leave the state to avoid rising costs and escape the growing threat of devastating natural disasters, as well as higher home insurance premiums. What People Are Saying Hannah Jones, senior economic research analyst at previously told Newsweek: "The trajectory of home prices in Florida is dependent on the larger economic context and mortgage rates, which both impact buyer demand. Currently, many buyers are on the sidelines because still-high prices and mortgage rates have priced them out of the market. "Affordability could improve via some combination of lower home prices and lower mortgage rates. Until buyer demand improves, it is likely that sellers in Florida will continue to reduce asking prices, hoping to spur some buyer attention." Miami Realtors Chairman Eddie Blanco said in a press release: "Miami and South Florida real estate continues to be a national leader in employment, population and home price appreciation gains. These Miami fundamentals are shielding the market from macroeconomic changes: tariffs, stock market fluctuations and 7 percent mortgage rates." What Happens Next While the Sunshine State housing market is experiencing a cooldown that is likely to continue bringing prices down at the state level, the situation on the ground is slightly different in South Florida and Miami-Dade, where inventory remains below the pre-pandemic level. Despite the threat of hurricanes hovering over the region, Miami-Dade also remains a relatively strong market, thanks to the pull of Miami, which is growing as a tech hub, attracting new residents, investments, and a larger workforce. At the same time, the region's condo market is still being affected by new building safety legislation, which came into effect at the end of 2024 and has increased HOA fees for owners, prompting many to put their properties on the market despite a lack of buyers.
