South Florida's Metro Area has seen some of the largest increases in home prices in the country over the past several years. The price of a single family, 3 bedroom home has risen by close to 11% while condominium pricing rose 7.1% to $289,900 and $156,300 respectively. Additionally, the market has seen a 33.4% increase in the amount of transactions that took place in early fall 2015.
South Florida is well positioned to see increased growth over the next several years. Developments such as Paramount Miami World Center and Brickell City Center are ready to drive a new consumer demand for Miami. Investors worry that the growth rates are too high and may be unsustainable, with a more manageable growth rate closer to 3%. Prices have been driven up due to limited supply in areas, but a bulk of supply is about to hit the Miami market over the next few years. To separate themselves, some projects have chosen to focus on quality over quantity, upgrading to developing luxury units with more space to attract buyers.
One interesting aspect of the South Florida Real-Estate markets growth over the past several years is that it has been investor driven. South Florida market has not yet seen many first time home buyers and those using FHA loans purchase properties in the past several years due to the competition within the market. Investors offers on properties are typically more attractive, and have made it hard for first time home buyers to take advantage of the discounted prices.