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Miami, FL: Real Estate Market & Trends 2016

The Miami real estate market is thriving in 2016, as home prices and appreciation rates surge past the national average. The median home price for the Sunshine State was $286,700 during the first quarter, compared to the national average of $215,767. Along with an upswing of investment activity in recent months, appreciation rates for Miami real estate continue to roar past the national average, further meeting the approval of Miami real estate investors and homeowners. That said, the Miami real estate market is poised to have a solid second-half of 2016.

Miami, FL Real Estate Market Statistics:

Miami real estate investments

For those looking to obtain equity in their homes, there is no better place than the Miami real estate market. In the past year, homes in the Miami area have appreciated at a rate of 8.2 percent, compared to the national average of 6.1 percent, while the three-year appreciation rate was 27.4 percent for Miami real estate, compared to the 22.6 percent across the country. For homeowners and Miami real estate investors, gains in the last three years have extended the trend of positive price growth after the recession, with price appreciation and principle payments boosting total equity growth. For those considering Miami real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Miami, FL housing market one year ago have appreciated, on average, by $26,148. The national average was $15,781 over the same period.
  • Homes purchased in the Miami, FL housing market three years ago have appreciated, on average, by $73,878. The national average was $49,356 over the same period.
  • Homes purchased in the Miami, FL housing market five years ago have appreciated, on average, by $133,411. The national average was $68,727 over the same period.
  • Homes purchased in the Miami, FL housing market seven years ago have appreciated, on average, by $103,218. The national average was $59,758 over the same period.
  • Homes purchased in the Miami, FL housing market nine years ago have appreciated, on average, by $49,694. The national average was $16,435 over the same period.

The Miami real estate market continues to be one of the hottest markets in the country, as equity gains for Miami real estate has outpace the national average for the last nine years. That said, homes in Miami saw their biggest equity gains in year five, accruing $133,411 compared to the national average of $68,727.

As of July 2016, there are currently 21,300 properties in the Miami area in some stage of foreclosure. While the number seems astronomical compared to other markets such as Kansas City and Indianapolis, the number of Miami foreclosures in the month of July was actually six percent lower than the previous month and 52 percent lower than the same period in 2015, according to RealtyTrac. In addition, the number of REO properties in Miami fell 36.1 percent from the previous month and a whopping 75.6 percent from the same time last year. Despite recent declines in foreclosures, there are still many investment opportunities for Miami real estate investors and homeowners alike.

Miami, FL: Real Estate Market Summary:

Miami real estate investors

  • Current Median Home Price: $286,700
  • 1-Year Appreciation Rate: 8.2%
  • 3-Year Appreciation Rate: 27.4%
  • Unemployment Rate: 4.9%
  • 1-Year Job Growth Rate: 2.5%
  • Population: 441,003
  • Median Household Income: $46,946

Miami, FL: Real Estate Market (2016) — Q1 Updates:

Miami real estate investing

The first quarter of 2016 has been extremely kind to the Miami real estate market. Along with home prices outpacing the national average, and total home equity rivaling the rest of the country, the current economic landscape of Miami should continue to drive the real estate market going forward. That said, the current unemployment rate in Miami is better than the national average: 4.9 percent compared to 5.0 percent. On top of that, job growth during Q1 accelerated at a pace of 2.5 percent, compared to the national average of 2.0 percent. Those aspects reveal that the Miami real estate market is not only better than the national average in terms of unemployment, but is growing at a rate above the national level — which are all good signs for Miami real estate investors and homeowners moving forward.

Another positive for the Miami real estate market is new housing construction, which continues to outpace the national average. The current level of construction for Miami is 48.9 percent above the long-term average while single-family housing permits grew at a rate of 12.7 percent during Q1. Production above trend for an extended period of time could cause prices to moderate as inventory is built. It’s something Miami real estate investors and homeowners should pay attention to in the second-half of 2016.

Although the Miami real estate remains clearly in demand, home affordability continues to outperform the national average. During the first quarter of 2016, homeowners paid 12.3 percent of their income to monthly mortgage payments, while the rest of the country paid, on average, 14.5 percent of their income. In fact, home affordability for the Miami housing market has actually improved from its historical average (15.3 percent), which is still better than the national average of 19.5 percent. That said, the Miami housing market is one of the more affordable in the nation.

Looking forward to the future, the Miami real estate market is expected to see additional growth in the second-half of 2016. The National Association of Realtors (NAR) forecasts stronger price growth in Florida than in the U.S. over the next 12 months, with price expectations for Florida real estate currently at 4.4 percent, compared to the national average of 3.8 percent. The Miami real estate market should remain bullish for the second-half of 2016.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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