The Miami real estate market is famous for its growth, opportunity, and commercial and residential magnetism. This is for a good reason: Miami continues to offer record sales, a marked drop in distressed sales, and a steady increase in home value. The majority of Miami real estate sales are conducted in cash, which means no financing. These qualities are what make the city not only a cultural benchmark for the entire country but also a prime environment for the budding entrepreneurship of new real estate agents and the determined expansion of experienced agents.
So, what exactly makes the Miami real estate market such an attractive venture for those with the right tools? If you are considering becoming a Realtor — or are already in the business and looking for a new market — the following will help you see why Miami and RisenLife Realty might be the perfect place for you to grow your personal brand.
- Miami Leads the Real Estate Market with International Customers
International buyers account for more than 25 percent of the Miami real estate market, and that trend shows no signs of slowing down anytime soon. Miami continues to be the top market in the United States for international clients. In fact, Florida is the top U.S. state for international real estate transactions, surpassing both California and New York, with Miami leading the way for foreign buyers entering the American housing and commercial markets. The city boasts lovely weather year-round, strong cultural diversity, and powerful economic growth, all of which means Miami is a perfect environment for international citizens looking to live or do business in the United States.
- Developers Are Thinking Ahead and Building with Caution
For those who remember the housing bust of the late 2000s, the idea of a solid real estate market showing signs of growth potential and increased popularity might be a worry rather than a comfort. However, there are many reasons why this concern should not scare real estate agents off from the Miami market — in fact, it should actually be reassuring. Unlike during the previous market cycle, developers are not outstripping demand in the building process. This means that the vast majority of the development currently in progress is already owned rather being up for sale.
Developers have learned from the 2008 crisis, and they’ve moved into a new period of optimistic but controlled and deliberate investment. This means that real estate agents and buyers alike can feel assured that they are entering a stable market that will continue to improve for many years to come. Fifty percent of sales and 80 percent of ongoing construction are paid entirely in cash as opposed to financing, which means there is even more reason to be confident in the strength of Miami’s market growth.
- Miami’s Sales Are Off the Charts — and Continuing to Expand
Between 2011 and 2015, the Miami real estate market broke its sales records and experienced a previously unreached level of financial growth. Home and commercial sales have continued to march on with a strong showing of stability ever since. In fact, home sales are increasing by roughly 30 percent in the mid-price range. The Miami real estate market shows no signs of slowing down, leaving the city poised to become the most powerful market in the country.
- The Market Is Expected to Keep Getting Better
In 2009, almost 70 percent of Miami real estate transactions were bank-owned or short sales, resulting in a high degree of distressed sales in the marketplace. As of 2016, however, distressed sales have plummeted to less than 25 percent as the real estate market strengthens, pushing beyond those temporary setbacks. As distressed sales decline, the market will only continue to grow and become an even more appealing environment for buyers and real estate agents alike.
- Cost of Living in Miami Is Surprisingly Affordable
While Miami is the top pick for international buyers seeking to enter the United States both commercially and as residents, it remains one of the most affordable options against its real estate competitors, such as New York City and San Francisco. Unlike other cities, Miami has avoided much of the inflation that has priced out so many buyers in recent years. Home prices are increasing every year but not beyond 2004 levels. The costs of living in Miami are not drastically outpacing buyers’ ability to keep pace — as is so often the case in other international hotspots.
- Southern Florida Is Growing Exponentially
Miami’s population is growing steadily every year. In addition to being a hotspot for international tourism, business, and home sales, the city is incredibly popular with American buyers. The most recent U.S. census data shows that more than 900 people move to Florida every day, adding up to more than 325,000 new residents each year. No other state aside from Texas has a real estate market that comes close to Florida. Even California is just in third place, coming in at more than 100,000 fewer new residents than Florida annually. The Miami-Dade region specifically has seen a 2.1 percent growth in recent years, and the Miami metro population is expected to soar from 5.5 million to more than 7 million in the next two decades.
- A Flourishing Market Needs Strong Real Estate Agents
With such an exponential growth projected for the region, Miami will continue to need qualified real estate agents who are willing to take initiative, work hard to get ahead of competitors, and use their knowledge of the market to project future growth and know how best to take advantage of these patterns and opportunities. Real estate agents in southern Florida should be willing to learn the ins and outs of this unique market to best apply that knowledge to listings and sales. The most powerful way to begin building your brand in the Miami scene is to become part of a 100 percent commission brokerage. That will give you the tools and resources you need to take advantage of the prime opportunities Miami is offering.
RisenLife Realty is not a law firm, and the employees of RisenLife are not acting as your attorney. Our educational blog and sample real estate forms are not a substitute for the sound advice of a local attorney, whom is familiar with your local laws and regulations. RisenLife cannot provide you with legal advice, nor are we permitted to engage in the practice of law. We are prohibited from providing you with any sort of advice, opinion, explanation, or recommendation about your possible legal rights – which may include remedies, options, or defenses.
About RisenLife Realty
RisenLife Realty is Miami’s premier 100% real estate brokerage firm. We retain Miami’s top real estate agents to help clients across the world buy, sell, and rent real estate in South Florida’s hyper-competitive marketplace. Although selling your home fast is our specialty, we also work with clients to advise them on when to buy a home in Miami, while also assisting for sale by owners with our popular flat-fee $98BuckListing™ MLS Listing service for Miami-Dade County. Deeply committed to South Florida’s socioeconomic success, we maintain an educational real estate blog that provides tip & tricks from buyers, sellers, renters, and FSBOs. Miami buyers can sign up for a free account and search our free Miami MLS real estate listings. Miami real estate agents can Join Us today and start keeping 100% of their commissions earned.