Steep price incentives, a lack of new construction and a favorable tax environment all benefit Miami and Fort Lauderdale buyers in the beginning of 2018. After a slow year in the South Florida property market, dominated by an oversupply of luxury inventory and the retreat of Latin American buyers due to the strong dollar, 2018 represents the perfect time for interested parties to buy a luxury condo in Miami or Fort Lauderdale, experts say.
It’s a Perfect Storm of Opportunity Right Now!
- Softened prices; developers and sellers willing to offer 10% to 20% price reductions.
- Lack of new construction, allowing current oversupply to get re-absorbed.
- A U.S. tax reform bill that could mean huge savings for people willing to relocate to this income tax-free state.
- An aging U.S. population that wants luxury living and nice weather for their retirement.
“We’re seeing increased sales velocity and a longer-term commitment to South Florida from our buyers,” said Ryan Shear, Property Market Groups, noting that this is a shift from the investor-driven buyer of a few years’ back. “The luxury markets in most of South Florida will really benefit from these factors over the next 12 months,” he added. “I literally don’t think there will be a better time to invest in the Florida property market than right now,” he said.
Most experts agree that a lack of new building and favorable tax environment should result in price increases. But experts also expect that Miami prices for luxury properties will remain flat in 2018 because of the oversupply that needs to get worked through, which will lead developers and sellers to offer price incentives to move both new and resale properties, some market factors could lead to price increases soon after.
For buyers who do want new, they need to act now and purchase in a project that’s either recently closed or is scheduled to close soon. Otherwise, they should plan on either picking up a resale unit or waiting until 2021 or 2022 for any new projects started in 2019 start to hit the market.
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