Miami Real Estate Market - Is it on the Decline?
Hello. I want to start by saying thank you. Thank you to those who have called or sent me DM's asking for help after watching these videos. Thank you for putting your trust in me. This is why we enjoy making these videos to be able to help people out there and provide value.
By providing you with this information, our goal is to give you a deeper insight into the local market in Miami. Helping you understand the current trends in your desired area can be invaluable when making important decisions about your home purchase and/or home sale. We have taken the 2nd Quarter Closed Sales and compared it not only to last year, 2022 but previous years as well.
We took single family homes, and condos in some of the more popular areas in Miami to show you different segments of the market. Let's jump right in to the graphs, and then afterwards we will give you a summary of where the market is and where it's going. Right away, on the graph for single family homes, across the board you will note the # of sales has slowed from last year's 2nd Quarter and 2021 which was the perfect storm for real estate, but comparing the data only to these two years will not be a true reflection of the market as those two years were off the charts especially 2021 and we may never see those levels again. Which is why we like to include a few years worth of data so we can see what a "normal" year looks like.
We truly feel that 2019 was the last "normal" year in the Miami Real Estate Market. So if we take 2019, 2nd Quarter Closed Sales for these areas and compare it to this years you will see that the # of closed sales is very similar while of course prices are much higher.
This seems to be showing the market getting back to a more normal real estate market as far as # of sales. Now we look at the Condo graph and can see that the data is acting a bit different but for the most part the # of closed sales is decreasing from last year. Even though we see a slight increase in sales in Brickell we do not think this indicative of the rest of the market and we will keep our eyes on this to see how it plays out and what is really going on. Where are we right now?
At the start of 2023 we were coming off a big pause in the market as interest rates had shot up to over 7% in a matter of weeks in November which put a big pause in the market for both Buyers and Sellers. Then in the first couple of weeks in January interest rates started to go down and went below 6% which that seems to have jump started the market again.
This forward momentum carried the market into the 2nd Quarter, and we then saw a noticeable slow down towards the end of 2nd Quarter. What we need to determine is this a Summertime low as everyone is traveling overseas or did we hit a slow down in the Miami Real Estate Market??? We feel it needs to be further evaluated and will put out a video showing what has happened and make it a Mid-Year Market Update. Stay tuned.
BUYERS - Inventory remains low, and interest rates are still hovering around 6-7% and finding that perfect home can be a challenge so start your home search early. Luckily the days of sky high pricing are over, and Seller's are willing to negotiate are a bit more accommodating now. Keep in mind though that a home priced correctly will still receive a few offers and be sold within 1-2 weeks of being listed. SELLERS - The market is strong it's just sensitive to price.
Buyers are a lot more cautious now than before so please listen to your real estate agent and price the home correctly and it will sell as I just mentioned in 1-2 weeks of being listed at your asking price or very close. We are still seeing a big gap between homes in turnkey condition versus those that need to be updated. If your home needs updating you will need to price below the market to attract the most attention but it will still sell fast.
Please note we are staring to see a key metric increase, "Days on Market". If not priced correctly and the home does not sell within that first 1-3 weeks we are noticing an increase in Days on Market. Please work with a professional to help guide you through this market and achieve your goal. Where do we go from here? As I mentioned, the forward momentum we got from the 1st to 2nd quarter has definitely slowed down.
What is not clear is if it is just a summertime low as families' are traveling in record amounts or is a slow down upon us? What I can tell you that is clear is that Buyers are definitely getting accustomed to interest rates being around 6-7%, inventory remains low as not many sellers are stepping up to list their homes for sale and as of today we do expect more of the same for a while. That's it for now.
Thank you for watching and I hope I was able to provide some value. If you ever have any questions or need any help. I'm always available.
Talk soon.