Red-hot Miami housing market expected to defy 2023 cost correction as blue state exodus continues
Florida’s red-hot real estate market is not expected to cool anytime soon as researchers predict Miami home prices will defy a 2023 cost correction and continue to rise.
U.S. existing home sales slowed for the 11th consecutive month in December as higher mortgage rates, surging inflation and steep home prices sapped consumer demand from the housing market.
But Miami looks to be the exception to the rule as Americans continue to abandon blue state tax policies.
“As long as California and states like Massachusetts pass measures like the mansion tax or the millionaire’s tax and continue to drive ultra-high net worth individuals out of their states, I believe that this year is going to show healthy growth for Miami and South Florida,” real estate expert Dina Goldentayer told “Mornings with Maria” Friday.
STUDY CLAIMS WEALTHY BLUE STATE IS AMERICA’S MOST AFFORDABLE, BEATING STATES THOUSANDS ARE MOVING TO
Goldentayer, the executive director of sales at Douglas Elliman, noted an “encouraging” new paper released by Goldman Sachs researchers last week forecasting Miami will be one of only two major housing U.S. markets to escape a staggering national home price correction in 2023.
READ ON THE FOX BUSINESS APP
According to the U.S. Census Bureau’s Vintage 2022 population estimates, Florida is the fastest-growing state with a 1.9% population increase between 2021 and 2022.
HARSH WARNING ON US REAL ESTATE MARKET ISSUED: ‘AMERICA NEEDS MORE HOUSING’
But with an unprecedented amount of homebuyers flocking to the Sunshine State, realtors are still grappling with an inventory problem.
“Inventory is still quite limited. You know, a year ago, if I had a buyer fly in, we may be able to see five to eight homes. Now, I could see I could show that same buyer eight to 12 homes. But the inventory is still quite limited,” Goldentayer said Friday.
“And there’s far from an oversupply in the sectors of the marketplace where there is more inventory. Naturally, you’re going to see more leverage for buyers out there.”
An additional factor that is fueling Florida’s housing market is the surge in international buyers. Goldentayer shared that many international buyers have come from all around the world to get a piece of the Sunshine State – however, the “bread and butter” for the Miami marketplace remains buyers leaving blue states.
DESANTIS WARNS OVER CHINA REAL ESTATE INVESTMENTS: ‘GOBBLING UP LAND’ NOT IN FLORIDA’S BEST INTEREST
“The main international buyer for the Miami marketplace remains Canadians. I have a lot of clients from Toronto and Montreal. I’m definitely working this year with more European buyers,” she continued.
“The bread and butter for my marketplace remains buyers from blue states like California, like New York. They still very much fuel the ultra market marketplace.”
GET FOX BUSINESS ON THE GO BY CLICKING HERE
FOX Business’ Megan Henney contributed to this report.
