04 Apr Real Estate Trends: What’s Happening in the South Florida Real Estate Market?
Are South Florida Residents Evacuating?
A recent report on immigration in South Florida highlighted some key home buying and immigration trends here in Miami/Dade, Fort Lauderdale and Palm Beach County. The author’s conclusion: There are two trends: 1) Floridians are moving out with South Americans moving in and 2) Miami residents are moving north because its too pricey.
It’s kind of old news, yet while we might believe the South American immigrants (Brazil, Argentina, Venezuela) are non wealthy and won’t buy expensive properties, they are buying still.
It’s a healthy housing market in Palm Beach, Miami, and Fort Lauderdale for sellers that it is. For buyers, it’s tough which is why you’ll appreciate having me assist you if you’re buying a home in Palm Beach.
Will the Out Migration Stop in 2018?
Due to the cost of living, all but the very wealthy are being chased out westward and north to less costly cities. This creates new buying opportunities if you’re in the market to buy here.
It’s actually a wonderful opportunity for those who want to cash out of a high price market. And for sales to take place in the resale market, someone has to move out of their house. As home prices range higher, we could expect more Floridians to move away from Miami, Fort Lauderdale, and Palm Beach? But how long will the Latin American buying spree go on?
Have a look at this gem on La Puerta way in Palm Beach. 7 bedrooms, 7 baths at an affordable $6M.
Or this magnificent 8 bedroom, 8 bathroom home on the waterfront in Highland Beach for $15M which makes it an interesting investment property.
Photos courtesy of Beaches MLS
The fact that US buyers such as those from NY are declining in number due to prices, is a concern.
As for who is buying the homes, it appears Hispanic speaking buyers from South America (Brazil, Argentina, Venezuela) are most interested in buying properties here. Are they immigrants? Are they having their kids educated here in our excellent private school system? Or are they real estate speculators?
Photo courtesy of Wikimedia
The reason they’re buying could be due to currency exchange issues. However, once these fleeting currency and political issue pass, the interest may pass. Once prices stabilize or fall, we could see a rapid decline in S American buyers. And we still haven’t seen the full extent of the Trump era trade and immigration policies take affect. Will President Trump liberalize immigration from Hispanic countries?
Fewer Americans Are Moving to South Florida
Besides the exodus of Americans moving out of their homes here, there are fewer US Citizens moving here. Since Palm Beach, Broward and Miami Dade counties have nearly the highest home prices in the US, we can be assured that home prices are the issue.
2016 was the 6th straight year of property value increases, rising more than 8% just last year. One expert noted that market values have jumped by 46% since 2012. Despite high prices and Brexit in the UK, home prices keep rising.
The median sale price for single family homes in Palm Beach County increased 6.8% to $315,000 in February as pending inventory dropped 6.8% to 3,090 homes.
Despite the fact homeowners are leaving, there still is not enough inventory to keep up with demand. Single detached homes in Palm Beach are in very high demand, according to real estate experts. And while many South American buyers are transfixed with the Miami metro area, they will venture northward into the Palm Beaches to find homes in a sellers market.
If the US economy is revived and wages and wealth rise in America, we could see a resurgence of US buyers wanting to move to the premium communities of Wellington, Boca Raton, and Palm Beach. Lot’s of speculation because we’re living in interesting times.
I’m Michael Goldberg a Boca Raton Palm Beach Realtorwith United Realty Group. I’ve been through the relocation process myself and I’d like to be your Florida Realtor. I’ll ensure you discover the luxury home of your dreams in the beautiful cities of Boca Raton, Wellington and Palm Beach here in South Florida.
Please call or text me now.
West Palm Beach FL 33414