The 2019 Miami real estate survey is out but there's a lot to digest so I'm going to give you some of the main points to know with this year survey.
The neighborhoods of Kendall and North Miami have been rated as some of the best neighborhoods for homebuyers. The Brickell neighborhood is one of the hottest areas in town as well as the most overvalued. Miami traffic is also playing a role in where people are choosing to buy and live and because our housing costs have dropped slightly, it may be a good time for buyers to jump into the market.
This 2019 Miami Herald Real Residential Real estate Survey has been conducted for the last five years and surveys over 100 of the Miami-Dade's top brokers in agent analysis.
For the second year in a row, the high-end neighborhood of Brickell was voted the hottest area for renters with downtown Miami coming in second. Miami Beach and Edgewater tied for third. There are more than 6300 new rental apartments added to the downtown area including Brickell since 2014. There are another 5000 rentals expected by 2022. Just because it's a hot market doesn't mean it's affordable. The highest average rental price for a one-bedroom is over $2300 for Brickell alone and 2200 for Miami.
Brickell also came in as one of the top spots where many people would buy a condo if they were in the market, which doesn't really do much for the statistics at large. However, Brickell has come in as one of the best neighborhoods for young professionals as well and Brickell is coming to its full potential. There are more educated, upwardly mobile young professionals drawn in by multiple residential options in Brickell. However, on the flip side, many people said they'd avoid Brickell altogether because of its overvalued neighborhoods. Currently, it has a medium per square foot price of $491, much higher than Miami's median of $417. Brickell is a no go for many investors because of the oversupply that exists and the higher-priced properties.
The affordable neighborhood of Kendall is also one of the hottest areas for buyers for the first time. Miami Beach and Coral Gables have come in top of the list in previous years and Kendall is still a lower-priced option for many first-time homebuyers and have a lot of the things that these first-time buyers are looking for. Kendall offers good schools, shops, restaurants, and residential neighborhoods in a more affordable option.
North Miami is also becoming one of the fastest-growing cities in the county. It was voted the most undervalued neighborhood, which has piqued interest from investors. New York-based companies plan to raise the value of the neighborhood which still has a median list price of just $196 per square foot. North Miami has seen some very attractive price points and its close proximity to the beach, great schools and shopping centers make it perfect for families and anyone looking for this type of home.
So what's up with the value versus price?
Home values in the county have slowed for the last few years but have not tanked at all. Many experts feel that the county home values will appreciate over the next 12 months but not at a high rate. Just 16% of experts feel that prices may depreciate. The total number of home sales have dropped just over 6% year over year and this will may home prices continue to rise. 65% of experts feel that the current inventory of properties under $1 million is considered good value up from 47% in 2018. Good value simply means the home is fairly priced.
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What about out-of-town buyers?
The Trump administration placed a $10,000 cap on the amount of local and state taxes that households could deduct from their tax returns and this has resulted in a mass exodus of wealthy investors in both New York and Florida especially in the Miami area. However, 68% of experts feel that they have an increase of buyers from the northeastern United States and has been snapping up luxury property, that $10 million-plus at a rapid rate. Tax driven purchases are about 70% single-family homes and 30% condominiums, most being in Miami Beach, Bal Harbour, and the server-side communities.
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83% of experts feel that traffic is one of the biggest influences in decisions regarding real estate throughout the county. This is more of a lifestyle decision than a real estate decision. Traffic has become such a concern that you either will choose to live with it or choose a different home. Many people fill they want to be less than 15 minutes away from their job even above schools, shopping, and home values. [Source: Miami Harald]