By: Jennifer LeClaire
MIAMI—There’s a new reality in Miami’s residential market. What does that mean for developers?
GlobeSt.com caught up with Henry Torres, founder, president and CEO of The Astor Companies. Astor is the developer of Merrick Manor in Coral Gables.
“In 2018, the Greater Miami residential and condominium markets will continue adapting to the new reality that we now have a local, end-user driven market,” Torres tells GlobeSt.com. “We don’t currently have the outside forces, such as political crisis in places like Venezuela or the economic collapse of South American nations, to drive sales at new developments. It’s much more of a local market.”
Let those words echo. It’s much more of a local market.
“With a shift towards a local market—and continued influence from people in the Northeast, Midwest and Canada who won’t stop wanting to move down here and still consider our prices to be a deep discount—the buyer profiles and preferences are changing,” Torres says. Florida is still one of the fastest-growing population states in the nation—and South Florida dominates those oft-quoted stats.
(How long will it take the remaining condo inventory to sell? Check out one view.)
“The local buyers are often empty-nesters downsizing from large single-family homes in favor of a more vibrant and amenitized condo lifestyle, along with families seeking that lifestyle conveniently located near the schools the children attend,” Torres says. “An important thing to note is that this category of buyers will not be in a position to speculate on a building that is years away from completion. They will focus on projects that are nearing completion so they can close and move into their new residences as soon as possible.”
That being said, Torres is convinced Miami will remain a second-home haven for South Americans and a secure place to park their money. His conclusion: Despite South Florida residential sales prospects becoming more local, South Americans always be an active component of our market.
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