As I write this post, it is evident that the Country is going off of the so-called “Fiscal Cliff”. We all have watched the news reports and daily back and forth that is going on in Washington. But the real question that I constantly ask myself, being a Real Estate Agent, is “what effect will this have on the Miami Real Estate Market and the Real Estate Market as a whole?” For starters, existing home sales have jumped 23% from 2011 levels with the median home price at about $195,000. This in itself is truly a feat since the real estate supply here in Miami is in short supply. The incredible surge in the buying frenzy, here in Miami, is mainly fueled by foreign investors and home buyers that are maximizing the power of their countries currency to find a great Real Estate deals. For example, two of the big buyers of Miami Real Estate are the Canadians and the Germans. Germans currency is the Euro and currently trades at $1.32. Which means that every Euro is equivalent to $1.32 in US dollars. Germans, like other countries around the world, realizes the Miami Real Estate Market is a great buy and that their investment will continue to rise. With this said, the Fiscal Cliff would only attract more foreign buyers to the Miami Real Estate market looking to capitalize off of any decrease in the market. As for the average American looking to purchase Real Estate in Miami or other parts of the country, the biggest effect the Fiscal Cliff would have is uncertainty. Americans will ask themselves a series of questions like “Will money become tight”? “Will the price of groceries and goods skyrocket”? “Should I purchase a home now or wait alittle longer”? These questions may temporarily pause the buying decisions of some Americans long enough to make a small impact. But overall, with the increase in foreign buyers purchasing Real Estate, I predict 2013 to be as a great or better year than 2012. The key is knowing what to buy, where to buy it and at what price. I love the Miami Real Estate market and look forward an exciting 2013.
Jasmin is a Realtor in Miami, Florida and speaks several languages including English, German, Hebrew and Yiddish.