South beach real estate (Miami, Ft. Lauderdale, Palm Beach) market?

Question

Anyone who lives or invests there can you provide your opinion on the market? Is it still red hot or has it slowed down? Inventory has jumped more so in the northern counties. Thanks in advance for any and all opinions.

Kyle Camerlinck · Answer

As an agent in Palm Beach, I have not seen any signs of the market slowing down. Towards the end of the year, things were a little slower, and buyers had some negotiation power, but I would say that was all seasonality, not necessarily the effect of interest rates. I say this because as the new year has hit, the market has been on absolute fire.

Jose Castillo · Answer

Hello Hunter, the southeast Florida market is still very active. It might not be red-hot, but it is still hot, with the average effective purchase and sale between 30 and 60 days. The actual days on the market have significantly increased in the past six months. The city of Miami Beach currently has over 7000 active listings. This produces an inventory supply of 18 months, transitioning the market from sellers to buyers market. We have clearly been in an aggressive seller's market for several years now, so this will provide the opportunity for buyers to enter the market with more incentives and discounts as properties commence to take longer to sell and inventory continues to increase.

Ray Hage · Answer

@Kyle Camerlinck As a fellow realtor/investor, I have seen the same. As soon as January 2nd hit, it's been busy! A few people have reached out and are ready to go. Interest rates coming down helped of course. The market is still slower than peak time when interest rates were 3% though. I expect it to pick up again in summer

Jossalyn Wallace · Answer

I second what Melissa Said!

Bob Stevens · Answer

RUN!! WAY overpriced; I would not touch it. The bubble is going to burts.

Gabriel A Pena · Answer

The Multifamily market is slowing down, but pricing is not falling. Price per units are flat, and even slightly up in some sub-markets, but transaction volume is down 70% from 2022 levels.

Our team has noticed three headwinds: 1) Rent market is softening in the higher-growth submarkets 2) Insurance is still insanely high (avg +$2K per unit), making NOI tighter. 3) Rates for Multifamily deals are 6.75%, but Cap Rates are still much lower.

Over 50% of deals on market have been there over 120 days - you can't have more velocity without an eventual dip in prices.. Maybe top of next year will see a buying opportunity once sellers realize the new reality we are in.

email me if you'd like to know more

Elionay Imbert · Answer

Hello, even with the high interest rates I have clients buying. Their thought process is that eventually interest will go down and home prices will spike up! I am personally doing this myself and looking to buy in the next few months. I invest more in the palm beach and Port st lucie area and the market is hot with offers being sent without even looking at the properties. Please let me know if you have more questions or just want to talk about investing.

Jason Angrist · Answer

Market has definitely softened here in Miami however prices have not come down. Buyers have a bit more negotiating power but anything thats priced correctly and presented the right way to the buyer community isn't sitting on the market very long. Miami is rapidly changing before our eyes. It seems that every day a new condo or commerical project is being announced. If you're looking for a long-term investment that will provide consistent cash flow and appreciation, I would go all in on Miami. Every top developer, restauranteur, hospitality brand has all entered our market..that says something.

Melissa Haworth · Answer

Have you considered the panhandle area? Panama City Beach, Destin and the surrounding beach towns are great if you're looking to invest in STRs near the beach and in Florida.

Jude Campbell · Answer

Variable rate mortgages on second properties are the first to go in high-interest rate environments.  Definitely a contributing factor as to why inventory is significantly higher.  Markets like these are always the most susceptible to turbulence and are always hardest hit in a downturn.  Is it still red hot?  I'd say no.  It has slowed down.  Does anyone have an answer as to what's coming next?  The answer is simple: even the greatest macroeconomist can only give their best guesses.

South beach real estate (Miami, Ft. Lauderdale, Palm Beach) market?

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