Florida will be one of the most sought after real estate markets in 2023 according to experts
According to projections made by the specialized page Zillow, Miami is among the few real estate markets in the United States in which prices have not decreased with the increase in interest rates.
In order to control the inflation that is currently hitting the country, the US Federal Reserve has significantly increased interest rates for mortgage loans in recent months.
If in the first half of 2022 interest was around 2.5%, currently those rates are seen at almost 7%. And this, as expected, greatly diminished the intention to buy properties based on credit, which caused prices in much of the country to stagnate or even fall.
In a large part of the country but not in all of it, since although in most of the markets what was expected happened, some markets managed to maintain the values or even increase them, despite the increase in interest rates.
This is the case, for example, of the city of Miami, in South Florida, which has historically positioned itself as one of those “hot” markets in which financial variables do not seem to alter the desire of buyers.
Miami within the top 10 real estate markets in the USA
The website specialized in real estate, Zillow, conducted a study of markets across the country, and analyzed the top 50 real estate markets in the United States during the last year, taking into account various demographic data.
According to the report, Miami ranked eighth among the most sought after markets, mainly because despite the increase in interest rates, property prices have also increased.
“The record growth in property prices in the country ended in 2022, mainly because we are seeing the highest interest rates on mortgage loans since 2008. But the reality is that what happens varies depending on the market. In cities like Miami, for example, we have seen an almost zero decrease in the value of properties or even in some months there has been an increase in the price,” the report states.
On the other hand, the signs of cooling in the market have materialized more strongly in the largest cities in the country, such as Denver, San José and Sacramento or Minneapolis.
Another factor to take into account in relation to the cooling of the market is the time that the property remains for sale on the market. In general, properties usually take a couple of months to sell. Today, Miami continues to be a very fast market, while in other cities you can already see properties for sale for about six months.
Investing in BAI Capital is investing in the United States
With a presence in the real estate sector in the states of Florida, Texas and New York, BAI Capital specializes in generating value from land acquisition to the development of mixed-use projects. Such as residences for the elderly, student residences, multifamily buildings for rentals and mixed use that include condos and retail.
Our mission is to safeguard the capital of the partners and the own capital under the minimum risk exposure. With a safe development and going through all the stages. Purchase of land, adjustment of urban zoning, commercial vision in architectural development and management of building permits. Then, we take charge of the capitalization, construction and exit with return of the capital and profits to the partners.
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