Hal's 2020 Real Estate Predictions
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After spending several hours reviewing predictions, doing my own research and reading the tea leaves, here are my predictions for South Florida’s real estate market in 2020.
Generally speaking, we’re in a buyers’ market and we will continue to see reduced pricing in most areas despite continued low interest rates.
Live-work-play communities is the 2020 drumbeat. Millennials are interested in areas where a car isn’t required. They want chef-driven eateries and communities close to work, but not necessarily in the big downtown settings. Coconut Grove is seeing a big resurgence, as is Coral Gables.
Due to the strong dollar, the international buyer market has slowed down. This will yield opportunities for domestic buyers in the coming year, particularly in the condo markets of Sunny Isles, Downtown Miami and Brickell, where international buyers usually flock.
Even with the international buyer lull, South Florida is not in trouble. In 2020, we will benefit from the “foreigners” from New York, New Jersey, Connecticut, Illinois and California coming here for tax purposes.
North of Downtown Miami into Broward and into Palm Beach County, markets will move faster and overall, will see more consistent pricing despite the continuation of high inventory.
There will continue to be an oversupply of big houses. Millennials want smaller, newer spaces. Homes older than 20 years and carrying price tags above $1.5M will take a long time to sell.
Contrary to the rest of the market, there will be strong demand for homes priced below $350,000. These homes will often end up with multiple offers.
Increased awareness of sea level rise will impact our shoreline markets. Sales will occur faster for newly-built homes that are elevated to new codes.
The Presidential election in 2020 will be our wildcard. Whenever there is uncertainty, the stock market pauses. So too will the real estate market. I expect the second half of 2020 to be glacially slow. I have little doubt, once the election is over, the market will swing one way or another in an over-reactive manner.
You will reach out to me to help you in real estate! ;)
