The 3rd Quarter #'s are out and we want to share them with you today.
We want to start by saying that the Federal Reserve finally lowered rates a couple weeks back by half a point (50 Basis Points) and gave the indication that they would be doing so a few more times over the course of the next year or so, sending a positive signal to the market and buyers that have been waiting on the sidelines.
Now lets turn our attention to the data for the 3rd Quarter to see what happened in the Miami Real Estate Market in some of the more popular areas we know well and do business in for both segments, Condos and Single Family Homes. Lets jump right into the graphs to see how the market did. We start with single family homes in Coconut Grove, Coral Gables, Pinecrest and Miami Beach specifically South Beach, 33139.
So out of the 4 areas we cover 3 had similar stats, a decrease in the # of Sales while only Coral Gables saw an increase in the # of sales, while 3 out of also saw small decreases in price while only Miami Beach saw an large increase in price. So mixed results here for single family homes, but here in Miami the summer season tends to be the slowest of the year. In the condo market we cover Downtown Miami, Brickell, Coconut Grove and Miami Beach specifically South of Fifth.
We see here 3 out of 4 areas saw a decrease in the # of Sales along with a decrease in prices which we have noticed that the headwinds the condo market is facing is starting to affect sales and pricing. We will go into more details in our summary... In Summary, Right now we have a tale of two markets, single family homes and condos. For homes the demand is strong and even though we see small decreases in pricing we feel they are holding on, for condos we see demand slowing and prices decreasing.
We feel the biggest drag to the condo market is what we have covered in prior videos and has to do with the new law known as SB4D also known as the Condo Safety Act which has implemented a new Structural Integrity Reserve study which has to be completed by December 31. This has brought huge increases in Maintenance Fees and forced Special Assessments to many condo buildings not only in Miami but in the state of Florida.
Due to all the uncertainties around this especially those which have not yet completed this reserve study. We feel this will continue to put downward pressure on the condo market for the foreseeable future. In general though the Miami Real Estate Market is strong, it is just sensitive to price. We are coming off two years of historic pricing increases where properties doubled and/or tripled in price and then shortly thereafter interest rates jumped from 3-4% up to 7-8% this combination truly slowed things down.
On top of this the demand we saw during those two years has definitely slowed and is getting back to a more normal pace of sales. As we have said in prior videos we are in a correction, and are still trying to find out where this leads us to. What we can say from being in the markets daily is that if you price your property correctly it will sell in under 30 Days. If you don't then it will sit on the market which we have noticed days on market increasing.
As a matter of fact you will probably not get any phone calls or showings on it which is an indication that it is over priced. This goes for both sales and rentals. As I was taught years ago the market will speak to you, you just have to be willing to listen. We have seen some properties extremely over priced and are just sitting on the market for months and months.
We have a couple other topics we want to highlight... Having been in the real estate market for 18 years we have been through a few presidential cycles, and can tell you from experience that the real estate market slows down heading into the elections as people hold off on big purchases and big moves due to all the uncertainty. Once the election comes and we get that behind us we typically see a pick up in the market, and we feel that coupled with the lowering of interest rates will kick start the 4th Quarter and 2025. Lastly... We just came off of 2 hurricanes that affected the State of Florida back to back. Helene last month, and now Milton.
Both have been very destructive storms and could not have come at a worse time as the last couple of years Insurance Premiums sky rocketed and finally in 2024 we started to see premiums slightly decrease.
Now with all the damage these two storms have caused we feel it will cause insurance companies to leave Florida which in turn cause rates to increase again, maybe not right away but for 2025 and beyond. With all of that said we know it was a lot but we had to cover it. We love making these videos to put the information in your hands and provide value to you.
If you have any questions feel free to reach out we would be happy to help.
Thank you for watching and we will see you soon.