The Real Deal Miami

Weakening Brazilian currency spells trouble for Miami market

September 23, 2011 02:34PM

As has been widely reported, Brazilian buyers have steered the Miami real estate market through the recession. But as the Brazilian currency, the real, begins to slip in value, World Property Channel speculates the Miami market could be negatively impacted.

In July, 8 percent of Miami property buyers were Brazilian, and 85 percent of them paid all cash. But in the two months since July the Brazilian real has lost more than 20 percent of its value against the dollar. That means those 30 to 40 percent discounts Brazilian buyers had come to expect are quickly evaporating. At today’s opening, one dollar was worth 1.92 Real. If that number slips further, so could the Miami market. [World Property Channel]