Categorized | Residential

Uncertainty Ahead for Florida Real Estate Market

Please Share!

Florida’s residential real estate market has defied expectations in the last six months, with Miami leading the way as one of the hottest property markets in the nation. Both sales and prices in the state’s real estate market have increased despite initial predictions that the state would face a dismal year in 2011. International investors have provided the unexpected boost to Florida’s property market, as they have essentially flocked to South and Central Florida.

Despite the recent success, however, there exists an uncertainty that the state’s property market may soon stall, or experience a mini decline. Restrictive policies on property sales and lending that were imposed earlier this year in China are now indirectly impacting Florida’s real estate sales.

The actions taken by the Chinese government to curb property prices in China has caused a massive slowdown of their overall economy, particularly in areas such as construction and housing development. Countries that export raw materials to China, such as Brazil, are experiencing economic slowdowns as well due to a drop in sales.

Brazilian buyers have made up a significant portion of homebuyers in the Miami market. As Brazil’s economy experiences a slow down, it is likely that the number of homebuyers from the South American nation will decline in the coming months. The reduction in international homebuyers will certainly have a negative impact against Florida’s real estate market.

While Brazilian homebuyers have played a significant role in the recent growth of Miami’s housing market, they are not the only international investors to target the city. As such, the predictions of a slowdown in pricing may or may not come to be reality.

Please Share!

About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

Leave a Reply

Twitter Chat