When asked how residential home values will fare over the next 12 months, 36 percent said they will appreciate; 33 percent said values will remain flat; and 21 percent said they will depreciate.
“There are different sub-markets in South Florida, so it’s difficult to put them all in one basket when talking about investment value,” said Carlos Rosso, president of the Related Group’s condo development division. “Land values and construction costs have gone up so much that if someone wants to launch a new project, they have to come out at a higher price point. Whether or not this is the right time to launch is a different story. But in general, new jobs such as 444 Brickell or the Aston Martin residences will elevate the value of existing properties nearby. The areas where people really want to live will go up, because there are fewer of them.”
Outside Investors and Out-Of-Towners
Out-of-town investors have been a critical driver of local real estate values. But this year’s study shows the number of foreign buyers continues to drop, comprising only 29 percent of total buyers — down from 56 percent in 2015 and 33 percent in 2016. Locals made up 27 percent of buyers, up from 11 percent in 2015 and 23 percent in 2016.