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How Foreign Exchange Rates Are Impacting Residential Sales

MIAMI—“The local job market is a major piece of the puzzle.”

By Jennifer LeClaire | jenniferleclaire | | Updated on June 08, 2016
“13th Floor Homes is filling a void in the market for buyers who don't want to sacrifice affordability but still want the luxury amenities that come with new construction,” says Mike Nunziata, “13th Floor Homes is filling a void in the market for buyers who don’t want to sacrifice affordability but still want the luxury amenities that come with new construction,” says Mike Nunziata,
MIAMI—There’s been plenty of talk about foreign exchange rates. Some insist it’s making a big impact while others say the impact is not dramatic. GlobeSt.com caught up with Mike Nunziata , division president for 13th Floor Homes , to discuss the current state of the single-family home market and how the stronger US dollar is impacting residential development in South Florida in part two of this exclusive interview. You can still read part one: Can Homebuyers Overcome These Challenges? GlobeSt.com: What is the current state of inventory of market-rate housing for single family? Nunziata: With so much emphasis on high-end housing product in recent years, we’ve seen the gradual depletion of our region’s inventory of market-rate housing, leaving middle-market buyers with few options. In fact, there is currently a five-month supply of single-family homes in South Florida, according to the Miami Association of Realtors . A balanced market between buyers and sellers offers between six and nine months of inventory.  Much of this disconnect can be attributed to rising land prices, which are making it increasingly difficult to find buildable sites for new construction. Infill has been key to our success as it allows us to continue building in a way that creates value for the buyer. And while land constraints are certainly of concern, the right opportunities still exist if done strategically. GlobeSt.com: How is the stronger US dollar impacting residential development in South Florida? Nunziata: While the international market will fluctuate, there will always be residents looking to purchase homes. The local job market is a major piece of the puzzle. In the near term, the job market continues to remain strong despite the devaluation of foreign currencies. However, given our region’s strong reliance on tourism as an economic driver, we could see some ripple effects should global tourism decline. Fortunately, that does not seem to be the case at least for now. In fact, according to data released by the Governor’s office, 105 million tourists visited Florida in 2015, marking the fifth consecutive year of record tourism growth.

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