Question

Name 4 factors that are causing home prices to rise in the Miami real estate market.

Answer 1

There exists several factors which are contributing to the residential slowdown and on the contrary rise in home prices in the Miami real estate market. Some of factors are :

First, a strong dollar has encouraged the foreign buyers to buy homes, either for residential or investment purpose.

Second, during recession, the investors and flippers have already snapped up much of Miami’s home inventory, which fueled sales at the recession end.

Third, the overall cost of buying a home in South Florida continues to climb because of foreign investment in houses.

Fourthly, in the beginning of the century, the Credit institutions have began issuing a high number of mortgages on light credit standards.

All these factors have resulted in huge sales of homes, mainly luxury homes under the single-family at the miami beaches.