A History of House Prices in Miami Florida
Currently, The Miami, Florida housing markets is one of the hottest in the United States and is growing out from the early 2000s housing slump and bubble burst. In 2014 the median home price in the Miami-Dade county region was around $260,000USD. This is still far off from the high experienced in the early 200s where the median home price in Miami was around $460,000 (in 2006). As shown, a history of house prices in Miami Florida has undergone many changes and swings throughout the cities history.
When Miami was still considered to be an outback, hillbilly enclave in the mid to late 40s, the housing market was as inexpensive as could be. With associated costs adjusted for inflation, a family could have expected to enter into their first new home in the Miami area for around $4000-$6000, around $48,000 in 2014, a far cry from the $260,000 median home price of 2014.
As the city slowly came out of the reputation if being a backwater town and developed into the upscale and urbane city enjoyed today, the home prices fluctuated vastly. IN the 1970s during the recession and gas crises The United States experienced, home prices plummeted even as the other associated costs in the US was subject to rampant inflation. When the 1980s came along and there was a huge change in the US economy, the Miami housing market spiked to a new high. This was also due to the influx of an unwanted, and illegal source of revenue for the city, the drug trade. As cocaine became a problem throughout Florida, there was an abundance of money from this illicit trade that caused a spike in the housing prices. While this was enjoyed by land and home sellers, it was not a positive thing for the city as much of the money being exchanged to purchase and broker in homes was from the drug trade. Experts estimate that in the mid 1980s in Miami, about every third home was purchased either directly or indirectly through money derived from the drug trade.
As the Miami housing market moved into the 1990s, the drug trade was slowly being brought under control and as a result, the housing market saw stabilization with growth in prices really only being affected by the prime lending rates established through the FDIC and other regulating agencies. The median price for a home in the Miami-Dade region in 1995 was around $200,000 with adjusted inflation costs added to the price. So as can be seen, since the mid 1990s, the Miami-Dade housing market has seen slow, but consistent growth with the exception of the years between 2004 – 2009 where the enormous housing bubble took place. When this unrealistic situation finally burst, it brought the Miami-Dade housing market back down into the normalized growth rate and brought the prices back down into the reach of many first time buyers.
Today, the city has projections that show it to be a healthy region for housing. It is projected that Miami home prices will continue to grow at a rate on par with the annual adjusted inflation rates, making a home purchase in the Miami-Dade region a safe and significantly smart move. This is a market for first time home buyers, established home owners looking to upgrade and for real estate investors, whether they be US based or overseas investors looking to expand their holdings. Miami is a city bound to grow and the real estate market will continue to follow the trends of its former days. Real estate companies like Prestige International are nurturing well in Miami. They can be contacted online at prestigeinternational.com.br for the best property deals in Miami.
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