1st Half of 2023 - Miami Real Estate Market - Is the Market Shifting?
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Helping you understand the current trends and developments in your local real estate market can be invaluable when making informed decisions about your home pur by providing real market data to give you a deeper insight into your local market.chase and/or home sale. Mid Year Update - We are taking a look at Closed Sales and Median Price/Sqft for the first half of this year in some of the more popular areas of Miami for both Single Family Homes and Condos.
In the different graphs we compare the 1st Quarter vs 2nd Quarter, and then we dive a little deeper and look at the data Month by Month to see if we can spot any trends. At the end we will share our opinion and outlook on the Miami Rea Estate Market. Let's jump right into the first graph... What does the graph show us?- 1st Quarter vs 2nd Quarter for Single Family Homes in Coconut Grove, Coral Gables, Pinecrest and Miami Beach, specifically South Beach, 33139...Let's look right away at the bottom line which shows the % Change in the # of Closed Sales and Pricing from the 1st to 2nd Quarter and they all indicate an increase with the exception of one. Right away we can see that the 2nd Quarter was a stronger real estate market with more closed sales and prices increasing. That was definitely jump started the first weeks of January when interest rates moved from 7% to just under 6%.
It gave the market a boost that was needed and gave it that forward momentum into what was a very strong real estate market. In the next graph we dive a little deeper and look at the Month to Month data to see if we can spot any trends and get a better sense as to what is happening in the Miami Real Estate market. What we saw in the first graph we saw an increase in the market across the board from the 1st to 2nd Quarter, and now we can see it on a more granular level.
We can definitely see the start of the 2nd Quarter was much stronger than the first. Then we can see the market kind of slowed down as far as the rate of increase in the # of sales and pricing. What we have not been able to determine is did we just hit a summertime slowdown, as families were more focused on their summer travel plans or did we hit a real slowdown in the market.
We are going to be paying very close attention to the 3rd Quarter data as that will show us what really happened. Condos - We take a look at some of the areas that have the most condo buildings which we know well and have been working in for years, South of Fifth, Downtown Miami, Brickell and Coconut Grove.
Let's look right away at the bottom line which shows the % Change in the # of Closed Sales and Pricing from the 1st to 2nd Quarter and here we see mixed results. We do see the # of Closed Sales increasing across the board but pricing just held on or slightly increased.
To get a better picture lets jump into the month to month graph. Month to Month - Condos - Here we can clearly see the condo market had mixed results across the board. Even though we can see the same jump start in the # of closed sales from 1st to 2nd Quarter it didn't last as long into the 2nd Quarter as single family homes. It kind of sputtered out. So we saw an increase in the # of sales then it lost it's forward momentum sooner.
Definitely something to take note of, as we feel a shift is under way. In summary. We can clearly see that in the 2nd Quarter we had a stronger real estate market than the 1st, and then it kind of slowed down and lost that forward momentum we had going from the 1st to 2nd Quarter.
At the same time, we did notice that the single family housing market was stronger than the condo market, so we will be paying very close attention to the 3rd Quarter data to determine what is really happening in the Miami Real Estate Market.
From our experience right now in the market, demand is still very high and supply remains low while interest rates remain around 6 - 7%, and we do feel both of these things will continue for the time being and into the end of this year. We are still seeing a strong seller's market and if the property is priced correctly it gets sold in 1-2 weeks of getting listed. The interesting thing is that if the property is not priced correctly then we are seeing Buyers being a lot more picky and cautious thus the property will sit on the market.
Also, Buyers now are able to negotiate and have contingencies in their contracts. It is going to be an interesting rest of the summer and fall so stay tuned to our next market update. Thank you for watching and I hope we were able to provide some value.
If you ever have any questions or need any help, I am always available.
Stay tuned, and we'll talk soon.