While Miami is known as a city where countless luxury condos and mansions are snapped up by wealthy buyers from out of state or out of the country, locals also need to make their home there. However, in recent years, many locals have been finding it more and more difficult to buy properties, including moderately priced properties because they are competing with a large number of foreign buyers.
Many of these buyers are coming from South and Latin America, and they are offering to buy with cash and for above the asking price of the home. This means that many of the local buyers end up being outbid when they are looking for homes to buy. Because these buyers have the cash and who are willing to pay more for properties, it means that sellers can ask for more for their homes, which tends to push the home prices upward.
This is true even of more modest homes, not just the high-end properties. In the final quarter of 2018, for example, only 995 single-family homes in Miami-Dade County were below $300,000. Things have not changed in 2019, as by the middle of May, there were only 872 of these homes listed below $300,000. The land prices and the housing prices rise, but the wages remain the same.
What Can The Locals Do?
When it comes to these single-family homes, it certainly seems like it is a seller’s market. Even though there might not be locals who can afford the properties, there are plenty of foreign buyers who are looking to move to Miami from their native countries. Often, they are middle to upper class, and they already have a business up and running in their home country. They can come to Miami and provide more opportunities for themselves and their children. They have the money to spend, and sellers know that they can ask for higher prices for homes that would not have sold for that much in the past.
For those locals who have been looking to buy and who can’t afford properties over $300,000, and who are being outbid by foreign buyers, it can be disheartening. There are some options out there for those who look and who work with a real estate agent who knows and understands the area well. It is essential to keep in mind that those properties do tend to sell relatively quickly, though.