Prices in Miami are continuing to skyrocket even after the bottom fell out in the market in 2011 and property values plummeted. Many were suddenly underwater but today, home prices and condominium prices are rising faster than the locals can keep up. Those trying to purchase a moderately priced home in the Miami-Dade County area are finding that inventory is tight. In the fourth 1:45 thousand 18 there were 995 single-family homes under $300,000. There's an average of 330 homes sold each month and by mid-May 2019, only 872 single-family homes were listed under $300,000 for the entire County. There was only 677 in Broward County. The South Florida area is continuing to grow into an international destination beyond the vacations and resorts. Today, locals must compete with the cash-rich foreign and out-of-state buyers who keep driving up prices while local wages remain stagnant.
Foreign investors pulled out of the industry in 2009 after the perception and there was an abundance of foreclosed homes and condominiums throughout the community. The economic and political problems throughout Central and South America actually became a blessing to our local real estate market. Foreign buyers use Miami real estate is a safe place to park their money during the upheavals in certain countries. But Miami has also been known for money laundering with shady buyers using anonymous companies to snap up homes and condos when it's a seller's market, which drives the prices up even more for those seriously trying to afford a home.
In 2016, the US Treasury Department launched a dragnet to combat money laundering throughout the Miami-Dade County and this ongoing effort has spread to a total of 10 cities along the East Coast. 20% of Florida's homebuyers between 2009 and 2017 were foreign buyers. Today, we are still seeing that influx of buyers as foreign purchasers spent nearly $8 billion on residential properties in the county.
Related: How to buy a home in a tight market
The US is unlike some countries, where foreign buyers can face significant restrictions. But the US puts all buyers on the same playing field and the same tax rates and laws apply to all. This isn't just happening in Miami, New York is seeing a serious influx of out-of-state and foreign buyers as well. Florida has ranked third in the list of states that added the most construction jobs between March 2018 in March 2019. Florida also added 24,100 new jobs for annual growth of 4.5%.
While all of this is positive, local buyers are finding themselves priced right out of the market. The median price for existing condos went up 4.3% over last year with a single-family home increase of nearly 4%. Median sales prices have increased from 29 consecutive quarters. Cash has been the biggest advantage to buyers even though a cash offer is not necessarily the best offer. This is why it is essential to have a qualified and experienced buyers agent on your side to help communicate with the listing agent and get your offer noticed and accepted. [Source]