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Luxury Villas, Luxury Condos, Finance

The Real Estate Boom in Miami

The pandemic and months of stay-at-home orders had an impact on the real estate market of Miami Dade—but probably not the kind of impact you think.

By Maryline Lacorre 9 Feb 2021

An unexpected boom in real estate

COVID-19 resulted in an unexpected boom for the real estate market in Miami. Historically low interest rates have driven up demand (and prices) for homes. According to the Q3 report of 2020, the market has increased compared to the same period last year. Indeed, the median sales price for condos and single-family homes increased by 13.5%, and closed sales are up by 6%. Even though prices are going up, there is still enough inventory to make condos a buyer’s market. The listing inventory decreased by 17.9% (mostly houses). Only 0.67% of all single-family homes in Miami-Dade County (4,516 out of 678,860) are currently listed for sale or rent on the Miami Multiple Listing Service. Another indicator is the percentage of foreign buyers versus domestic U.S. buyers, which has flipped from 49% foreign and 21% domestic to 23% foreign and 49% domestic. Florida has become the first choice for those who are looking to relocate—especially people from New York, New Jersey, Illinois, and Massachusetts. 


According to the report of RelatedISG International Realty, during the first months of the pandemic and lockdown, there was a greater interest in buying homes than condos—but now, the trend has changed, and the ratio is more balanced. 

This is a huge improvement from April 2020, when the world shut down and the volume of real estate transactions suddenly stagnated. And now, five months later, the real estate market has rebounded with unexpected vigor.

In which Miami neighborhoods should you buy property?

With prices going up in some parts of Miami, buyers have to choose the right neighborhood for a good deal. Here is our selection of the best neighborhoods for buyers:


Coconut Grove

Located southwest of Downtown Miami, Coconut Grove is a quiet neighborhood with lots of access to nature. But this does not mean that commodities are lacking—malls, small artisan shops, art galleries, and restaurants featuring local or international fare are some of the many hot spots the neighborhood has to offer. The winding pedestrian streets, which juxtapose urban elements with natural flora, give the area its unique character. The neighborhood also enjoys a number of prestigious schools. Even if prices tend to rise every year (two of the three price trend indicators increased above year-ago levels), Coconut Grove is a good market for buyers. This is a highly sought-after neighborhood, but a good deal is not hard to find.


Brickell

Brickell is Miami’s modern, luxury business district, with buildings housing major multinationals, banks, and renowned law firms. Beyond its role as a hub of business, the Brickell district offers a luxurious “neighborhood lifestyle” and offers both comfort and security. Conveniently located between Miami Beach and Downtown Miami, this business district in the tropics has it all: gourmet restaurants, a brand-new shopping center, a cinema. Real estate trends for Brickell demonstrate that the average sales price decreased from the third quarter 2019. This is a good time to buy a condo in Brickell.


Aventura

Aventura attracts many retirees and young parents—it is designed so that its residents can enjoy all the amenities they desire within a short distance of their homes. Residents also enjoy the proximity to Downtown Miami, located only 30 minutes away, a definite plus for those who want to take advantage of all the entertainment that Central Miami has to offer but also want to venture off the beaten path and off Aventura’s golf courses. Aventura is a stable market for buyers. The sales price indicator is the same as 2019.

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