For the last few years, we have seen an extremely crazy market, where the Buyers were giving everything they had to be the winners. Indeed, a crazy market. Unfortunately, for the Sellers waiting to sell, the seller’s market is starting to shift. We are at the end of this crazy season.
According to a recent article it says that in South Florida, the tri-county the single-family home sales, went down 20.8% from last year, and in Miami Dade County only, plunged 21.3%. The article also mentioned that the trend was similar statewide as the number of single-family home sales fell 15.3%.
For the last few years we have been seeing a strong seller’s market. While the inventory was insufficient and tight for the huge demand led by the lowest interest rates in history, the market was not holding the buyer’s demand causing a strong seller’s market.
We also know that with a big buyer’s demand and low inventory affecting the market, the prices were going to increase and cause all the craziness. However, now we are seeing interest rates going up and this is impacting directly the buyer’s demand we have been having. That means fewer buyers could afford homes because the mortgage payments would be too high.
And, we need to keep in mind that the data below, is from April yes, but they are properties that went under contract a month or two earlier before mortgage rates really started to take off. In other words, the impact on prices could be yet to come.
The median sale price for a single-family home is showing an increase of 9.7% from last year now being at $565,000 and an increase of 4.6% from March with $540,000. Even though we are seeing an increase in median prices, remember, these properties went under contract 1 or 2 months ago when the increase in interest rates was starting.
I am very interested to see May and June data, but so far this is how the median price graph looks like In Miami Dade for single-family homes only.
Additionally to that, according to different local mortgage lenders across South Florida, they are seeing a substantial decrease in the number of applications.
The luxury market also took a hit. Miami single-family luxury homes plummeted by 31.2%. As far as the luxury condo sales stay almost even with a 0.3% decrease.
The median time to contract decreased by 30% to 14 days and months’ supply of inventory for single-family homes increased month over month for the first time in so long to 1.9 from 1.7 months a huge indicator of the shifting market.
Miami’s existing condo sales decreased 7.4% from last year to 2,199.
The median sales price for condos increased 20% from last year to $390,000 in April and decreased 2.5% from March with $400,000.
The median time to contract in April was 25 days and 52.8% decreased from April 2021.
Months’ supply of inventory for condos remained the same at 2.3 months and that is a decrease of 67.6% from last year. Very interesting to keep watching this data too.
In the condo market, we are not seeing a huge change just yet, but we will eventually. Additionally, there are so many new condo projects in Miami that a lot of investors and second-home buyers are looking and in which is holding the numbers a little.
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With all of those facts, yes, we are starting to see a change in our market and nationwide. I am definitely interested to see the next few months and see how everything goes.
But if you ask me if: Are we heading to a crash? My answer is no.
This is not 2008-2010. In 2009 the total distressed sales comprised 70% of Miami sales, and right now only 1.3% of the distressed residential sales closed and happened in Miami, a decrease from the previous month with 1.5%. And a 25% decrease from last year. So no, this is not the 2009 period.
Buyers, keep in mind that we are going to start seeing less and less competition with unfortunately higher interest rates. So, the market is going in your direction. However, it will take a long time to get there. If you can, do not wait for higher interest rates to happen because they will continue to increase.
Home sellers thinking of putting their property on the market must set the right expectations. If you keep waiting, your house will take longer, will get less offers, and eventually you will have to start giving concessions and negotiating with the Buyers.
–> Do you think that the sellers’ market is over? How can I help?
As always, if you would like to download the full report provided by the Miami Realtors I’ve posted the links down for you to get it.
To see the full report for Single Family Homes click here
To see the full report for Townhouses and Condos click here
If you are thinking about buying or selling in Miami, CLICK HERE or you can call me at 786-376-2398.
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