MIAMI—With the US dollar gaining strength against foreign markets, Downtown Miami's condo market is shifting. Fewer foreign buyers are doing all cash deals or hefty deposits, but a growing demand among US buyers and capital markets is helping make up the difference. This continues the trend from last quarter's report.

That's according to a new report the Miami Downtown Development Authority (DDA) commissioned. The DDA's Greater Downtown Miami Residential Real Estate Market Update reveals sales prices and rental rates are holding steady following two consecutive years of rapid price appreciation. One key takeaway: supply and demand dynamics are stabilizing.

“There is no doubt that it's a great time to be a domestic buyer in Downtown Miami,” says Anthony M. Graziano, principal of Integra Realty Resources and author of the DDA report. “With less competition from foreign all-cash buyers, we should see domestic buyers increasingly come off the sidelines in lockstep with the strengthening dollar.”