Miami is one of the hottest cities in the world, and the term “hot” has absolutely nothing to do with the temperatures in Miami. In fact, one of the most appealing things about Miami is the year round moderate temperatures. People seem the like living in a city where the average year round temperatures are in the mid 80s. Miami also has some of the best beaches in the world. The warm blue waters of the Atlantic Ocean calmly wash up on the white sandy beaches every single day, and when the sun goes down, the city of Miami springs to life.
So what does the current state of the real estate market in the Miami and Fort Lauderdale are look like? Taking data from home sales in Miami from five years ago and comparing to home sales data today does not look very promising.
Five years ago home prices were at their peak. The lower valued homes were selling for an average of just over $320,000 in the beginning of the year 2007. In the first quarter of 2007, the value of homes peaked, and then the slow downward spiral began. By the end of the year 2007, home values were right around $300,000.
In 2008 something horrible happened, an economic recession started and the value of homes in the Miami Fort Lauderdale market fell dramatically. In just two short years the average value of a home in this area went from around $300,000 to right around $150,000 in the middle of 2009. From the middle of 2009 until today the average price of homes for sale in the Miami Fort Lauderdale area has slowly fallen. It has not been nearly as extreme as it was from 2007 – 2009, but the average value of the lower valued homes in Miami is now hovering just under $120,000.
This could be the prime time to start buying up property in Miami. Real estate investors can get in, and get some property while everything is very cheap. As we said in our post on May 19th, foreign investors certainly think so.