Miami market is readjusting. During several days I've done an investigation to see the tendencies in the local market. Today I will try to explain to you how is the residential market. I decided to search by different areas to see the different tendencies and the ones I considered were: Coral Gables, Brickell, Doral, Key Biscayne, South Beach, Aventura, Sunny Isles and Kendall.
Global economy has an impact in Miami's market because there are foreign buyers that like to have properties here. I believe that during the next months it will have a twist towards a more U.S. market do to the strengthening of the dollar, however there might be investors from the English market that might prefer to invest in a more stable place after the Brexit (possibly more oriented to the commercial real estate).
Miami market will be oriented more to a local U.S. market, buyers and investors from northern states, who consider properties in Miami cheaper. For example, in cities as New York, you can find apartments as expensive as $100 million. An economy with a solid dollar, less unemployment and low interest on loans will revive and motivate local buyers and investors.
An actual local marked tendency is the lower amount of properties and the prices of the listings are getting lower. In a general overview, we could say that there is a shift to a buyers market, slow because there is a reduction in the amount of properties in the market.
The data used comes from Public records an MLS data updated quarterly making a comparison between August 2015 vs. August 2016. I'll present a Market Snapshot of each area:
Area Median Home Value Median Est. Listing Price Median Days Listed Sales Volume
Aventura $363K (up 1%) $339K (up 5.9%) 119 (up 5.3%) 50 (down -64.3%)
Brickell $378K $356K (down -9.5%) 122 (up 10.9%) 20 (down -70.1%)
Coral Gables $625K (up 4.1%) $630K (up 8.6%) 84 (down -11.6%) 62 (down -55.7%)
Doral $325K (up 5.5%) $272K (down -4.2%) 104 (down -1.9%) 49 (down 55.5%)
Kendall $167K (up 65.6%) $249K (up 67.2%) 196 (up 575.9%) --------
Key Biscayne $1.14M (up 3.9%) $839K (down -13.1%) 118 (up 1.7%) 11 (down -71.8%)
South Beach $373K $270K (up 4.3%) 122 (up 2.5%) 61 (down -64.9%)
Sunny Isles $315K (down -22.2%) $1.65M (up 154.2%) 203 (up 26.9%) --------
In a general overview, there is a lesser volume of properties in the market and it is taking more days to sell them. Prices have been going up in almost all of the areas, however we can see that some listing prices have been going down. Why would listing prices need to go down? What is the market telling owners?
I advice sellers to have a good market overview or a valuation before giving a price to a broker. The market gives the value of the property and in several cases you will see a property overpriced and that is why it is not sold. There is a tendency of sellers overpricing their properties.
I advice sellers to have a good market overview or a valuation before giving a price to a broker. The market gives the value of the property and in several cases you will see a property overpriced and that is why it is not sold. There is a tendency of sellers overpricing their properties.
Now is a good time to sell at a reasonable price. Prices have gone up and loans have good interest rates. My recommendation is to have a CMA or a valuation of your property and get information if the market value in your area is going to increase or if it is a good moment to sell because market value will start to decrease. There are certain zones like Coral Gables that are good for long term investments (grows in a constant rate).
As a Real Estate Associate I try to give the buyer and seller the most comprehensive information for them to take the best informed decision. If you need any help contact me and I'll be pleased to help you. I hope this information is helpful as an overview of part of Miami's Real Estate Market.
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