Real estate is fun and exciting, sometimes intimidating and if you're not too familiar with market conditions, it can often be an overwhelming topic and industry to venture into. The Magic City, officially known as Miami, is a melting pot of culture and diversity, with a booming art, fashion and luxury scene. While we've all heard that Miami has a surplus of product on the market, we sat down with Craig Studnicky, principal of ISG World, who finds that of the 19,868 new developer inventory on the market since 2012, 90 percent has been sold, while the remaining 1,988 new developer inventory on the market is expected to be absorbed by 2020. What exactly does this mean for the future of Miami real estate and how can real estate aficionados look to prepare for the future of the industry? Here's what we found out.
HR: What is the future of Florida's real estate market in the next five years?
In the next 12 months, most of the unsold developer condo inventory from this cycle will be sold. In the next 12 - 24 months, most Miami condo developers (i.e. Swire Properties, Related Group, PMG) will begin condo pre-sale campaigns for the next cycle. The condo inventory, placed on the market in this next cycle, will not be delivered until 2025 at the earliest. This means that most buyers of residential real estate, whether a condo or single-family home, will only have the MLS to look to as a source of inventory in the next 5 years.
HR: Is there an oversaturation of product?
There are approximately 12 months of resale condo inventory, 6 months of single-family home inventory and 18 months of developer condo inventory for sale.
HR: How do developers ensure their product stands out among the rest?
Unique architecture and state-of-the-art finishes.
HR: In your opinion, what are luxury homebuyers looking for in today's market?
In addition to outstanding architecture and state-of-the-art finishes, now more than ever, they want a pedestrian-friendly neighborhood experience.
HR: Why are people from the Northeast moving to South Florida?
People from the northeast have always been enamored with South Florida's great weather and beaches. However, recent changes to federal tax laws have made owning property in Florida more attractive than ever, as theses tax law changes favor states with no state income taxes, like Florida.