The Federal Reserve finally dialed back its bond-buying program known as quantitative easing (QE). And because the Fed is no longer buying debt, this can be a great time to get into the Miami condominium market.
What does quantitative easing have to do with Miami real estate? At its most basic level, it has to do with the U.S. dollar. The Miami market is not only attractive to a domestic marketplace – the vibe has gone international, and much of the interest was geared around a weaker U.S. dollar.
A weaker U.S. dollar compared to other international currencies makes U.S. products and services seem cheaper to foreign customers or investors. And that has been the case with the Miami market for the last couple of years. A weak U.S. dollar – with QE forcing more money into the financial system, creating an oversupply which then depressed the price of the dollar overseas – contributed to a large amount of foreign investment in the Miami real-estate market, which drove prices up very quickly.
But now that QE is over, the worldwide supply of U.S. dollars has been stabilizing, and the price of that dollar has risen accordingly in recent weeks. As the dollar rises in price compared to foreign currencies, prices for U.S. items – such as Miami real estate – become a little too rich for those customers, so they start to pull out of the market. A stronger dollar means domestic products seem more expensive to foreigners, while imports from other countries seem cheaper to Americans – in other words, a stronger dollar means we get more bang out of our buck globally.
So what does this mean for potential Miami real estate buyers in the condo market?Well, perhaps the most important takeaway is less competition. With fewer bidders, the price for a condo does not rise as quickly, or may even fall if demand slides. With prices becoming too high for many investors – the focus on the recent surge has come from Asia and Latin America – that means an opportunity for U.S. buyers to find a high-demand condo at a more reasonable price than maybe six months ago, with the right research and hard work put forth.
A stronger dollar means a softening market, and that is an opportunity that should not be passed up! Make sure to contact an agent who knows the Miami condo market well and can guide you to the right finds!
To ensure you find that perfect condo, click here to contact the experts at Imperial Real Estate Group today for information on current property listings as well as how we can help you.
Call us today at (305) 331-9192.
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