We are here today to share the 2nd Quarter and 1st Half #'s for single family homes and condos in some of the more popular areas of the Miami Real Estate Market, areas we know well and do business in so we like to cover in our research to stay ahead of the curve and better help our clients.
We want to start by saying that now that we are behind those two crazy and record setting years of 2021 and 2022 we are now moving towards a more normal market. As we said at the beginning of this year we are definitely in a correction. While some headlines make it seem like its all doom and gloom which it is not, we like to show you the numbers. We have a lot to cover so let’s go.
For single family homes in Coconut Grove, Coral Gables, Pinecrest and Miami Beach specifically South Beach, 33139. We like looking at the first half stats to get a better sense as to what is going on… and clearly across the board we only show two reds boxes in Coral Gables and Pinecrest both had the # of Sales decrease however all other boxes are green showing that even as their sales decreased prices have steadily increased in all areas.
Now in the Condo market we cover South of 5th, Downtown Miami, Brickell and Coconut Grove and we can see the market is different than single family homes. For the 1st Half of 2024 the # of sales is down across the board while pricing increased in two areas while barely holding on in others. In summary, we can see that the real estate market for single family homes is doing better than condos.
From the graphs, the areas of Downtown Miami and Brickell have experienced the largest decrease in sales year over year while prices have barely held on. We want to expand on this... we feel this has more to do with two things affecting the condo market right now in these two areas, #1 there has been a huge supply of rental apartments delivered the last couple of years in these two areas therefore giving people more options for housing, #2 (which we have covered this in a previous video) the tighter rules passed by new Florida Statute SB4D Condo Safety Act which made it mandatory that condo buildings have to collect funds to cover for all necessary and required repairs this is not only causing Monthly Maintenance fees to increase dramatically in most cases but in some cases they are passing Special Assessments to make up for a shortfall which is forcing some owners who cannot afford it to sell and therefore putting them in a tough situation where they have to reduce their selling price to make it attractive to a buyer.
At the same time, some buildings have started work on the exterior of the building which can take 1-2 years and not only do they close down some amenities especially pool decks, they also close off your balcony for a few months making it tough on owners living there and any buyers coming to tour the property.
This is something we will be closely watching… A message to Buyers... yes interest rates are around 7%, but if you can still afford the house or condo that you want go for it. Right now as sales have slowed year over year it is a great time to be a Buyer as you may be able to negotiate with Sellers and there is less competition. The federal reserve has already hinted that it may start lowering rates this year as a result you have buyers deciding to sit out the market and wait for rates to go down.
What do you think is going to happen when interest rates start to go down and you have a lot more buyers in the market??? What we have noticed for both segments, single family and condos is that if you price your property correctly and it is in good condition it will sell in about 30-60 days. Most properties that sit on the market for over 60 days are over priced, and once they hit the 60-90 day mark they seem stale and tend to sit for a lot longer and at that point they are chasing the market and will require a large price reduction to get back attention.
To Sellers and Listing Agents please stop over pricing listings. The 2021 and 2022 market is way behind us, you are just slowing the market and doing yourself a disservice. Study the market, research closed sales look at active listings.
Do the work! Summer is typically a slow selling season here in Miami, and we feel it will be a slow end to the summer and we now need to see how we pull out of the summer slowdown and into the fall and winter market which this year may be a bumpy ride as this is an election year and we have typically seen a slowdown heading into election time, so let’s wait and see. By providing you with this information, our goal is to give you a deeper insight into the local real estate market here in Miami and help you make informed decisions about your home purchase and/or home sale. We hope we were able to provide value and to be of service.
Thank you for watching, and We will see you soon.