Is Europe’s Debt Crisis Affecting Miami Real Estate?

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As concerns over Europe’s sovereign-debt crisis spread, the euro currency dropped to levels against the dollar not seen in four years. Many are wondering if this affected the Miami real estate market, in particular the areas where international buyers target, such as Miami Beach and downtown Miami.

Statistics show that if there is to be much fallout, that any damage remains to be seen.

Real estate, much like the equity markets these past two years, is also very much driven by the psychology or sentiment of investors. We are all looking for signs of improving economy with less shocks to the financial system, increasing confidence, lower unemployment, availability of financing, and subsequently a healthy real estate environment.

Unfortunately, with the plus 1,000 point drop in the Dow and fluid situation in European markets these past few weeks, we did lose a number of international clients. Then coupled with the typical slower months of May and June in Miami, it feels like we just fell off the rails.

Before you run-for-the-hills and think that the sky is falling on your head, we should pay attention to the facts. One of the best ways to gauge the market is to look at the available inventory AND pending home sales, which is a lagging demand indicator of what is in contract and yet to close.

According to the data provided by the Southeast Florida Multiple Listing Service, the inventory of properties for sale has been decreasing for the past several months, and the number of pending home sales continues to show steady growth as evidenced below -

These are good signs for our local real estate market and provide clear support that the overall environment continues to improve, albeit a slow and sometimes bumpy ride.

Are you looking for a Miami or Miami Beach investment property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or info@miamiangelproperties.com.

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