Real estate forecast for South Florida in 2018

Following a slow year in its property market, South Florida is ripe for new investments particularly in the luxury segment of Miami or Fort Lauderdale, according to experts. It’s what they dub a “perfect storm”: prices are softened, developers and sellers alike are willing to offer up to 20 percent in reductions, and there’s lack of new construction that allows the the absorption of current oversupply.

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Analysts of the South Florida real estate market are also highlighting a U.S. tax reform bill that could translate to huge savings for people willing to relocate to this part of the country, as well as an aging population that seeks out luxurious living and nice, retirement-friendly weather. 

Miami prices for luxury offerings are expected to remain flat in 2018 due to the oversupply that needs to be tackled, leading to developers and sellers offering price incentives for moving both new and resale properties. Certain market factors could hike up prices later on, including the lack of new construction taking place at present. 

The spring 2018 forecast for Miami and most of South Florida remains very good, as bolstered by a strong economy, thriving tourism, and strong employment. Growth and rebuilding are anticipated to continue as Hurricane Irma is now history. Factor in Florida’s rising wages as well as no-tax-status staying alive. 

Zillow noted that the average Florida home price should rise to $221,000 by end of the year, while condos are likely to rise to another price to $169,000. Compare these to prices in places like Houston, Los Angeles, San Francisco, and Seattle, and you will find that Florida homes remain a relative bargain. The trend nationwide, after all, is rising house prices because of constrained availability.

Image source: Pixabay.com

Pedro Martin is the Chairman, Chief Executive Officer, and Co-Founder of Terra Group. Through the years, he has been an influential figure in South Florida’s real estate industry. Learn more about the industry on this page.