According to prognosticators in our industry, the next downturn is not due until around 2020. As real estate agents, we tend to follow the trends, rather than predict them.
During the past year, we've watched housing prices in the area make gains from 9% to 27%. Prices increases of homes in Miami are close to the top of those numbers.
Home prices in Miami, as well as in most of the hot markets around the nation, are likely to increase with inflation, even if the market cools down a bit. However, unless more inventory comes into the market to meet the demand for homes, prices are likely to remain high based on the limited supply.
Typically, a six month supply of Miami homes equals equilibrium in the market. Right now, supplies stand at 4 months or fewer. In addition, large numbers of investors from all over the world feel that the United States is a safe haven for their cash.
Real estate, at the moment, is providing higher rates of return than just about anything else. Also, real estate is an investment that most people can easily comprehend.
So, for the moment, the Miami housing market is likely to remain hot, and prices do not appear to be headed down anytime in the near future.
Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
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