Florida is a hot state, literally and figuratively. According to recent data from National Association of Realtors, was the state the country moved to the most in 2022. As one of Florida’s largest and most popular cities, with the obvious draw of great beaches, nightlife and restaurants, as well as a distinctive local culture, Miami sees its own share fair of real estate rumors. If you’re thinking about buying or selling a home in the area, here’s what you need to know about the state of Miami real estate.
miami real estate market
He miami real estate market It is unique in many ways. For starters, this is very much a city of renters. Nearly 70 percent of the city’s occupied housing units are occupied by renters, according to US Census Datameaning that only about 30 percent of the city’s residents are homeowners.
Real estate investors are also a large part of the market here, with many owning tourism-related properties and vacation rentals. Foreign investors in particular accounted for 17 percent of home sales in Miami between August 2021 and July 2022. according to Axios, and a third of them pay the purchase in cash. Recent bills in the Florida legislature aim to limit which foreign citizens can purchase property in the state.
For Miami residents, market statistics can be a little confusing. While home prices are falling in many other parts of the country, the southeast is booming, and prices are going up in Miami. According Redfin dataThe median sales price here actually shot up 7.5 percent between April 2022 and April 2023. However, homes are taking longer to sell (an average of 66 days on the market, compared to 49 April of last year) and the number of homes sold has decreased by a whopping 41 percent year over year.
“The market is in a very interesting place right now,” says Meghan Maloof Berdellans, a broker with Miami real estate firm Interealty Exchange. “Sellers still have the advantage, even though things are cooling down from last summer.” In other words, it’s still a good time to sell a house in Miami, but things are not so desperate buyers as they once were.
live in miami
Miami has a lot to offer and of course that is why so many people want to live here. However, there are a few things you should know before you pack your bags.
- Like many tourist-heavy cities, Miami has a high cost of livingin comparison with the rest of florida as well as the rest of the US. If you’re moving from somewhere like Washington, DC or New York City, this may not be a big deal. However, if you’re coming from somewhere more affordable, don’t expect your money to stretch as far.
- Along with high home prices in Miami (the median price here in April was $575,000, compared to the national average of $388,800), also come high property taxes. Miami-Dade County Property Tax Rate It typically equals about 1.02 percent of a home’s assessed value, which is one of the highest rates in the country.
- The county also charges a transfer tax on the sale of homes, known as documentary stamp tax. This represents an additional 0.6 percent of the sales price.
- The cost of protecting your home here is also quite high. Homeowners Insurance in Florida it can be much higher than in most of the country, due to both weather problems (such as hurricanes) and a high rate of insurance fraud; See the chart below for more details on the state’s home insurance situation.
- Additionally, separate flood insurance may be necessary beyond the typical homeowners policy. As part of local real estate laws, sellers must disclose whether a property is located in a flood zone.
- Finally, the county charges a 7 percent sales tax. But there is good tax news for Floridians in general: the state does not collect any income tax from individuals.
The city of Miami has at least two dozen distinct neighborhoods, and that’s not counting nearby municipalities like Miami Beach, Miami Lakes, and Miami Springs. From Allapattah to Wynwood, the city is full of unique areas to live. Here are some popular options:
- Coral Path: With its banyan trees and classic Spanish houses, Coral Way is close to the center of the action, but far enough away to have a quiet residential feel.
- Center: Downtown Miami is where it all happens: cafes, shops, nightlife and parks are part of this thriving neighborhood.
- Coconut Grove: Also known simply as “The Grove”, this is an incredibly green and historic part of Miami with a relaxed atmosphere, an eclectic shopping district, and an active community.
- Wynwood: An entertainment district with booming art and fashion scenes, Wynwood’s trendy streets are filled with murals, galleries, restaurants, and shops.
Real estate agents in Miami.
Whether you are selling or buying real estate in Miami, it pays to have a professional by your side to navigate the process. That is where an expert local real estate agent enters. An experienced Miami agent will help sellers determine How much is your house worth?, then help list the home, submit offers, negotiate, and guide the sale to closing. Agents are also indispensable to buyers, helping them determine How much house can you afford? and where you can find the right property for you, then guiding you through the offer and closing process.
Alternatives to sell your house in Miami
While you can go the traditional route to sell a home, you have other options. In Miami, these include:
- Companies that buy homes for cash: Many Home buying companies operate in Florida, offering sellers fast cash and a fast closing, sometimes in as little as 7-14 days. However, these companies often aim to repair and remodel homes for profit, and they almost certainly won’t offer you the best price for your property.
- Buyers: Likewise, iBuyers like Open door, currently operating in the Miami area, makes quick cash offers and closes much faster than traditional agent-assisted sales. But you’re also not likely to get full market value for your home, and these companies often charge high fees in exchange for their speed and convenience.
- Maintain and rent: If you don’t need the cash from a sale right away, consider leasing it. There are many renters in Miami and becoming a landlord could provide you with a steady source of income.
Next steps: moving to Miami
Whether you are moving from out of state or simply moving from one Miami neighborhood to another, your first steps should be to get your finances in order and get pre-approved for a mortgage. This covers two important aspects of the home buying process: it tells you how much a lender would be willing to lend you, which helps you budget, and it tells sellers that you are a qualified buyer, which helps you stand out from the crowd. the competition. Next, hire a real estate agent. Interview several possibilities to find the right one: You want to work with someone who knows the area well and can help you find a place that fits both your budget and your lifestyle.
Important Note About Homeowners Insurance in Florida
- The home insurance market in Florida is in crisis. Since 2017, many insurance companies have left the state, filed for insolvency or tightened their underwriting restrictions, making it difficult for homeowners to find coverage. Many of the businesses that remain have chosen not to renew existing policies, leaving homeowners in the lurch.
- Fraudulent roofing claims are the main culprit, and the devastating effects of Hurricane Ian in September 2022 further complicated the issue. According to a report from the governor’s office, Florida accounts for 79 percent of the nation’s home insurance claims.
- New insurance reform laws went into effect in 2022 to try to stabilize the situation, but it may take some time before these laws produce significant results, and homeowners could see premiums exceeding several thousand dollars a year. Before purchasing a home in Florida, consult carefully with your real estate agent, and possibly a local attorney, to determine if the property will be insurable at a cost you can afford.
Home prices in Miami are definitely increasing. According to Redfin data, the median home sale price here increased 7.5 percent from April 2022 to April 2023. The median price currently sits at $575,000, which is about $200,000 more than the national average.
As of April 2023, the median home sale price in Florida overall was $400,900, according to Redfin. Miami’s median price was $575,000, a difference of $174,100. Miami is more expensive than many other popular Florida markets, including Tampa (which has a median price of $410,000), Jacksonville ($293,995), and Orlando ($360,000).
It’s a great time to sell real estate in Florida. Home prices continue to rise across the state, even as properties stay on the market longer before selling. Between high prices, high mortgage rates, and high homeowners insurance costs, Florida buyers face many challenges in today’s market.