It’s confirmed, the market is shifting with a total home sales plunge in Miami.
The Miami housing market is indeed shifting according to the latest release data from the Miami Association of Realtors and the MLS.
July 2022 total home sales outperform pre-pandemic numbers. Last month we had a total home sales of 2,375 from 3,632 in July 2021 a 34.6% decrease and when we compare 2022 numbers with prior 2020, let’s say July from 2016-2019 the average July total home sales was 2,325 and that’s where we are seeing the Miami market shifting from a total crazy market to prior 2020 times market. Indeed, 34.6% decrease is a huge number in Miami.
The MIAMI Chairman of the Board Fernando Arencibia Jr. said: “After two-plus years of record-breaking Miami real estate sales, the market is shifting to be more in line with historical norms.” “…we expect to see an uptick in inventory hit the market, and demand for Miami real estate remains as strong as ever.”
I recently did a video talking about different things experts are predicting that they are seeing happening for the majority of the markets nationwide. So watch it here.
Did you know that Miami came out #1 of the US metro where homebuyers want to relocate? Well yes, a recent Redfin article highlighted Miami as a place homebuyers want to relocate, is that the reason why we still have a strong buyer’s demand even with the jump in interest rates?
Single family homes sales decrease 27.2% from 1,373 in 2021 to 999 in July 2022.
The median price increased 10.7% year over year from $515,000 to $570,000 in July 2022 but decreased once again from June with $579,000 a 1.6% decrease.
We are seeing less houses sold, a median price decrease month over month and the reason behind this is the lack of inventory but also because of the rapid increase of the mortgage rates, which as far as Aug 18, 2022 the rate was at 5.13% higher than last year but actually the rates dropped because inflation appears to be beyond its peak.
So far from what I am seeing from the latest data, the new pending sales decrease which we will probably continue to see the decrease of sales for next month and the median percent of original list price is starting to change too. This is also another indicator that the market is cooling down, sellers are starting to see not full price offers so you as a seller need to come up with a great strategy to sell your property because here is another one, month supply of inventory continues to increase. In July 2022, month supply of inventory increased to 3.1 months from 2.8 in June.
The median time to contract increased once again this month to 17 days for the second time in a row, another indicator of the shifting market and not so good for the sellers. Indeed, that thing from the sellers of putting their properties way above the market value is not working anymore. Let’s face it.
And as far as the new listings, new listings decreased 1.6% from 1,666 in July 2021 to 1,639 July 2022 which still not enough for the buyer’s demand we have in South Florida.
Miami’s existing condo sales decreased 39.1% year-over-year, from 2,259 in July 2021 to 1,376 in July 2022.
The median sales price for condos increased 11.8% year-over-year, from $340,000 to $380,000 and decreased by 7.3% from June with $410,000 for the second time in a row. A huge decrease here.
The median time to contract in July decreased to 20 days.
And months’ supply of inventory for condos decreased 32.7% from last year to 3.3 months but this is actually the third month in a row with more inventory. June had 2.9 an increase of 13.8% month over month.
We still have low supply, a seller’s market, with a high buyers demand meaning we are going to continue to see higher prices. Let’s face it, local demand remains fueled by major companies such as hedge fund and securities firm Citadel moving to South Florida, the return of international buyers, and more.
We are seeing how the rental market has been too, the rents are rising strongly this is also causing higher prices. However, we are indeed in a transition market, a shifting market.
There are so many indicators in our market by now like price reductions, negotiations, and properties taking longer. We are now seeing empty or just few people in open houses, a decrease in cash buyers and so many other things that were not happening before. Of course this will depend or vary in the location and the price point but we are definitely seeing major changes in our Miami housing market.
Even though we are seeing all of this, house appreciation is still very high and properties will continue to appreciate which is good. But affordability for some has been a major problem with the increase in mortgage rates. But remember, higher rates will eventually lead to a moderation of the growth rate of pricing and later on we should see a price correction. Not a crash though.
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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