The biggest fear that someone will face when deciding whether the time is right to purchase luxury apartments in Miami is the fallout from a burst real estate bubble. Many Miami realtors have indicated that the first question a prospective new buyer will ask, is where are we in the current real estate cycle? Are we at the top of the market? Is it a good time to purchase a Miami condominium? Many new or first time buyers are quite concerned with this issue and are resistant to the idea of pulling the trigger and actually committing to the purchase.
This question is pervasive and is not limited to the buyer of a first or second home. Many seasoned buyers of Miami investment condos are equally perplexed by this issue. Traditionally, investors who purchase apartments in Miami will look to economic indicators to determine where we are in the current real estate cycle. However, many of these normally reliable indicators seem to be pointing in many directions. Normal predictive indicators such as “new housing starts” and “number of foreclosure filings” in Miami do not seem to reflect the current real estate market.
One reason for the discrepancy between economic indicators and the actual market condition would be as a result of the current buyers of apartments in Miami. Most of the current buyers of luxury apartments in Miami are from foreign markets. In the 1980’s real estate cycle, those same foreign investors purchased all of the apartments for sale in Miami using mortgages from local banks. When the foreign economies went into recession, these investors simply walked away from their Miami investment condos.
In the current cycle, these same foreign investors are purchasing all of the apartments for sale in Miami with cash. This cycle is driven in part because of the political unrest in the Latin American markets. Investors from Venezuela and Argentina are simply trying to get their money out of their local banks and into a more secure investment in a Miami condominium.
How does a buyer of a Miami condominium know where we are in the real estate cycle? This author would opine that it does not really matter. Luxury apartments in Miami will always be in demand. Miami is one of those magical markets where people dream of living. So if you are thinking of purchasing your Miami condominium count on our team of professional Miami realtors at condomiami.com to help you navigate this market.