Miami Prices On The Rise In The Third Quarter

Here we are in the third quarter, hoping for the economy to continue showing signs of improvement. If you’re a Miami homeowner, these hopes and dreams have come true! With home prices climbing 23% higher from the previous quarter, Miami real estate has hit a five-year high point.

In the recent past, Miami had been seeing a slow decline in home prices, just as the rest of the United States did. Considering the recent declines we been noticing nationwide coupled with the standard seasonal trend that real estate typically moves slower during the summer months, the fact that prices have risen as high as they have is an incredibly good sign for Miami.

Miami Prices On The Rise In The Third Quarter

Third Quarter Last Year

More good news- in addition to seeing a rise from the last quarter, we’re also seeing a pretty steep incline in home prices when we compare to the 3rd quarter of last year in 2012. “Regency reported Core Funds From Operations for the third quarter of $60.2 million, or $0.65 per diluted share, compared to $55.6 million, or $0.62 per diluted share, for the same period in 2012,” reports the Miami Herald.

How this Affects Investors

Generally speaking, when there’s a recognizable trend that the house market is moving forward from year to year it’s a good indicator that it could be a good time to buy soon, before prices get too high when it will be a good time to sell. When we see prices moving up consistently, it’s a good idea to wait for a few drops in the market (which happen from quarter to quarter) and, if possible, wait until there is an indicator that the market is continuing to move forward. This is why many Miami real estate investors seem to be excited over the recent upticks in the third quarter numbers as it’s a good sign that prices should continue to rise.

How this Affects Home Buyers

While many investors are excited at this news, this market is also passing the ideal time for flips. A good flip requires a home with good foundation and structural bones, in a good location, but is in need of some updates. This can be a costly process, so a home must be purchased at a very low price in order to make a profit. The market we’re in now however, is ideal for purchasing properties like luxury condos or beach homes that will always be in demand, but still have room to grow in regards to their value. Like we mentioned above, purchasing a home when you believe the price to be at the bottom can be dangerous, because of prices are on the decline you never know how far they will drop. When there begins to be an incline however, it’s a good indicator that the market is improving which typically will continue on an exponential level.

With good news from third quarter numbers, are hopes are high for the fourth quarter. For more detailed information about your specific area however, it’s best to speak with a realtor about your needs and wants and how they may play into the current market trends.