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Real Estate Forecast, 2019.

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1 -Condo prices will stop dropping!

Despite the decrease in the average sale price in most of the condo buildings and the increase of active inventory in North Bay Village and Mid-Miami Beach that we witnessed in 2018, condo prices will stop dropping. Now, at the beginning of 2019, we are starting to see a decrease in the active inventory of units for sale, with only one new residential pre-construction breaking ground in Mid-Miami Beach, “57 OCEAN”. There is also a small drop in the interest rate and an abundance of prospective buyers awaiting this opportunity. These factors should not allow the prices to drop any further; at least not in this area.

2 - Single-Family homes market will remain stable, except for the high-end homes.

The single-family home market in North Bay Village and Mid-Miami Beach works much differently than the condominium market. In 2018, the number of sales of water-front homes decreased. Meanwhile, over the last 4 years, we witnessed a steady increase in the prices for non-waterfront homes. These prices are anticipated to keep increasing at a very slow but steady pace, especially for the homes in the price range of $450K to $800K.

3 - Low ball buyers will keep coming.

We are now in a buyer's market, at least for condos. With more sellers than buyers to be found, this opens an opportunity for low ballers. These buyers will go from door-to-door offering up to 25% less than the asking price until they luckily find a seller who is in need or willing to sell quickly and at a discount price.

4 - National snowbirds will continue to drive our market in 2019.

With the continued absence of foreign buyers we are continuing to see numerous requests from American Northeaster buyers, especially from New York and adjacent states. They are mainly focused on the purchase of second homes, and in some cases, primary residences for their future retirement in the areas of North Bay Village and Mid-Miami Beach.

5 - Interest rates will dip before they continue to increase in 2019.

In mid-February 2019, we saw interest rates dip to their lowest level so far this year. These rates went from near 5% in November 2018 down to 4.32%. However, many industry analysts expect the average rate for 30-year fixed mortgages to go back to hit 5% in 2019.

Nivaldo Soria, P.A.

Claudia Serpa, P.A.

Realtors®
C: (305)219-8343
E: nivaldosr@southfloridainvestments.com
W: www.southfloridainvestments.com

Real Estate Forecast, 2019.

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