Miami numbers came out and they are looking insane.
The numbers in Miami got worse. The median price for both single-family and condos just got worse which means the market is even more difficult for buyers.
I did mentioned in my previous Miami Housing Update that it was going to be a very interesting next 2-3 months, well indeed March was pretty interesting, with crazy numbers.
Miami real estate posted the third-highest sales month in history with 3,939 properties sold in March 2022 an increase of 5% from last year. Even though we are seeing a new record, according to some mortgage lenders across South Florida they are seeing a substantial decrease in the number of applications.
A recent article says that they have seen a drop between 20-30% in purchase applications. What could this mean? Well, the effect that this could cause is the high-interest rates could cause a slight cooling effect on the market.
With the new data, we are seeing a 9% decrease in closed sales compared to March 2021 and still, we got the highest month in all sales in March. That tells us or I can assume the numbers are more in the condo and townhomes market.
The median sale price for a single-family home is actually showing an increase of 9.9% from last year now being at $540,000 and an increase of 0.7% from February with $536,000.
Something that caught my eye from this last report is the median percentage of the original list price received. The median of this was 100% of the list price. This means that in March all offers received and closed were at a listed price or above or let’s say very minimal price below the asking price. Also, this is another indicator of how competitive the Miami market remains.
The median price increased once again. As you see in this recent article, “As home prices continue to go up, that suggests homeowners should prepare for home taxes to go up” and even though property taxes don’t grow at the same rate as home prices, they will increase.
This is definitely very concerning stats for homeowners Also we are seeing a huge increase in the rents too, right? We know how the rental prices have been with an increase of 25, 30, and 35% in different areas in Miami Dade. Yes, this is one of the reasons why landlords are increasing their rents.
As of today, Tuesday (April 26th, 2022) we are seeing an average of 75% of properties that go under contract. Per every 20 properties that come to the market 15 go under contract the same day on average and that’s another indicator that our market is not cooling off. If we see the recently closed transactions the majority of them are closed at the listed price, then I would say a lot over asking and very few below-listed prices but not that much of difference either.
The market is not expected to cool off any time soon my friend. The continued limited supply means that homes are selling at a fast pace. I am expecting April to be another crazy market.
For the luxury market, single-family luxury transactions decreased 14.1% from last year and Miami’s existing condo luxury sales surged 40.4%
I always like to share the highest home in price sold which was sold for $34,000,000 an oceanfront house with 5 bedrooms and with over 7,000 sq. ft. in Coral Gables. The largest waterfront lot in Old Cutler Bay.
Right now there are 3.5 months of supply in luxury single-family homes; 5.8 months of supply in luxury condos.
As far as the median time to contract decreased 35.7% to 18 days.
New listings of Miami single-family homes decreased 8.5% to 1,540 from 1,974. This is huge because even though we received fewer new listings in March 2022, we still hit the historical sales record in March.
Months supply of inventory for single-family homes remained the same from February with 1.7 months.
Miami’s existing condo sales increased 14.9% from last year to 2,528. By the way, I just got news of new projects for sale allowing short-term rentals in very prime locations for guests and tourists, perfect to get a high return on investment. In the last week 2 new projects with these features, with no rental restrictions, were released to the market, and let me tell you they will not last. All the projects that I have talked about in the past with zero rental restrictions are sold out within 3 months on average depending on the number of units of course.
The median sales price for condos increased 31.1% from last year to $400,000 in March and from $380,000 in February.
The median time to contract in March was 31 days and 50% decreased from March 2021.
For new listings, 2,585 new listings came to the market. That is a 9.6% decrease from last year and actually, a 6.7% decrease compared to February. Again, we are seeing a decrease here even though the new record in sales in March. How crazy, right?
And months’ supply of inventory for condos continues to decrease 73.6% to 2.3 months
We are seeing how the interest has been going up this year and here is a table for you to see how it is going and will continue to increase.
Historically in the U.S., total inventory tends to expand six months after mortgage rates begin to rise. According to a new study by Realtor.com detailed that 64% of possible sellers intend to list their home by October 2022.
So that tells me that it could be possible the increased inventory by that time.
If you ask me if you should buy now, my answer will be no. There is so much competition right now that unless you are willing to put $20k, $25k plus over list price or willing to waive some contingencies or to put $25k plus money towards appraisal, then no. Wait until September or October. The prices will be higher yes, yet there will be less competition.
Now, if you are a seller asking me if you should sell now my answer will be definitely yes. I just mentioned that since the interest rates will continue to increase, fewer potential Buyers will be able to afford your house plus, you will likely have more competition once this happens. Cash-out all the equity you can get for your property now.
As always, if you would like to download the full report provided by the Miami Realtors I’ve posted a link down in the description below 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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