State of the MarketNovember 11, 2020
The Miami residential market is experiencing something extraordinary.
Sales of homes and condos have risen even higher than a year ago, before COVID-19 changed the economic landscape. Current inventory is very tight, driving prices and competitive bidding upwards.
My analysis of the markets, coupled with feedback from financial experts, shows there are tremendous opportunities for sellers right now. If you want to benefit, it’s time to take action.
What the Data Shows
After a four-month decline at the start of the pandemic, residential sales skyrocketed up while inventory shrunk rapidly.
According to the Miami Association of Realtors, Miami-Dade County’s total sales for both single-family homes and condos were up 12% between September 2019 and September 2020.
But buyers are discovering that if they see something they like, they need to act fast. Inventory dwindled by 37.3% for single-family homes and by 6.6% for condos from September 2019 – September 2020. Real estate industry professionals consider a balanced market to consist of six-to-nine months of inventory. Right now, that number sits at 3.8 months.
Less inventory translates to higher prices. The median price for single-family homes increased year-over-year by 15.2%, and for condos, the year-over-year price increase is 8.2%.
Why People Are Anxious to Move
The brisk pace and current increase in buyer interest are directly attributable to the pandemic. We have all spent an extraordinary amount of time at home. Many have looked at their four walls and realized, “I need more.”
There’s an influx of people from outside of South Florida looking to buy here. They were already attracted to our beautiful, warmer climate and lower taxes. Now, they’ve decided to relocate to an accommodating, spacious and amenity-rich home here.
Buyers are also jumping in to take advantage of historically low interest rates. At this moment in time, interest rates are still hovering just above 3%. The lower rates are motivating buyers to find and close on properties quickly before they go back up.
The Bottom Line
Eager buyers want to act. They are looking online, shopping around, and reaching out for showings. They are ready to go when the right property comes along because inventory is sparse. It’s a perfect storm of circumstances for today’s sellers who have waited for the right time to act.
If you think you’re ready to sell, you’ll want a realtor who can confidently navigate all that’s happening right now. I have the experience and network to sell your home quickly and profitably.
Let’s have a conversation about your next move.
Contact me today.