South Florida’s still a good value when you look around the world
Bottom Line: All real-estate is local and real-estate is always worth what someone is willing to pay for it. We’re well aware that South Florida’s a destination for Americans across the world. The blessing is also the curse. It’s great for our local economy and real-estate market to have interest from buyers around the world – however it can add to increased cost for those trying to make a living in South Florida. It’s long been our balancing act. For those who are international buyers, or simply from some of the most expensive housing markets in the country like New York and Boston for example, what seems expensive to many South Floridians – looks like a bargain in comparison. That’s evidenced in UBS’s Global Real-Estate bubble index.
The index studies the sustainability/value of real-estate markets across the world. Here’s the good news. Not only is South Florida not in bubble territory, our real-estate is considered to still be undervalued on a sustainable, relative basis. More on that in a moment but first here are the top five most overvalued housing markets in the world right now...
- #5: Amsterdam
- #4: Vancouver
- #3: Toronto
- #2: Munich
- #1: Hong Kong
You’ll notice the Canadian theme which of course heavily factors into our real-estate market. As for US markets considered to be in bubble territory...
- New York
- Los Angeles
- San Francisco
In that order. Once again you see two markets we pull from considerably in South Florida. So, the bottom line is that South Florida remains relatively expensive when simply viewed as a local real-estate market but it’s a bargain when considered nationally and especially internationally.