Welcome to the February issue. The Miami Dade County market home sales jumped in February, with only 28 days and yes, the sales numbers jumped!
With that being said, last month February 1,093 single-family homes sold which is actually up 11.4% from January with 968 closed and up 23.6% year over year from February 2020 with 884. And I must say with super crazy limited inventory. Please remember these numbers that I am giving you are just the resale market and single-family homes only. No condo, no townhomes. Additionally, this is not new construction either.
New construction is another world which in fact, I will be uploading a new video of what is happening with new construction very soon so stay tuned for that one because I will be sharing super interesting information. However, I must say that the new construction market is also suffering because they can’t build fast enough for the buyer’s demand and as they get new buyers under contract, prices increase as well.
Basically, prices are increasing by week because of the buyers purchasing a new home. Additionally, the construction material shortage they are suffering is another issue. So yes, if you find something that you like in a new construction community reserve that ASAP because the prices given at your initial appointment could increase in no time. The sooner you locked the price, the better for you. And I am not even talking about interest rates, right? Stay tuned for that video!
Let’s recap that, February 2021 is up compared to January 2021 by 11.4%.
Now let’s talk about the median sale price. The median sale price has been up since May 2020 and last month the median sale price decreased for the first time in months to $450,000. The last month that the median price was at that price was back in November 2020.
The prior month the median sale price was at $469,500 and now decreased to $450,000. That is a 4.3% decrease from January 2021 and 21.6% increase from February 2020 from $370,000. Wow, it’s still impressive how the market has been changing. That is a huge jump compared to last year!
Even though the market is moving, we are still seeing no enough inventory for the buyer’s demand causing bidding wars. When one new house comes to the market, a lot of people jump in and send offers to try to get it, and knowing how the market is, probably those offering or bidding have had lost in other properties as well. That is one of the reasons why we are seeing these bidding wars, not enough inventory for the high buyers demand. Buyers in the resale market are fighting hard. Last week actually I uploaded a video on how to win these bidding wars. So if you have not watched that video yet, go and watch it.
I must say that people keep thinking that we are in a bubble and yet you may think that we are, but we are not. This is a completely different scenario. Yes, eventually the prices must go down. However, unless something new or unexpected comes the way, experts are not seeing prices or the market start slowing down in the near future.
Prices have to go down yes, but nothing like what happened in the past because those issues were different in today’s market. So we will eventually start seeing a decrease in prices but little by little, not like if you pop that bubble you think we are on. Probably when we start to see more and more listing or properties to come to the market. That will balance the demand and could slow down the market.
But here is another thing.
If they don’t have a plan then it will be difficult. For some of them, it does not make any sense to sell now because of the limited inventory they have nowhere to go. That is one of the reasons, right? On the other hand, investors are getting high rent prices. I am not talking about Airbnb, I am talking about regular rents in communities where the AirBnbs are not allowed.
However, AirBnBs for investors right now is the bomb. There are not that many buildings in Miami where they allow to do AirBnB and the new ones coming offering the investors that type of possibility is amazing. They will get a ton of return of investment for those properties with Miami’s market. Actually, next week’s video, I will be giving you some communities with the option of Airbnb to get even higher return on your investment. Believe me is fantastic!. So if you would like to know more about Airbnb, don’t miss next week’s video.
And talking about the shortage of supply, months supply of inventory for single-family homes continues decreasing to 49.1% to 2.8 months which indicates a strong seller’s market. To give you some data, the supply of inventory in February 2020 had 5.5 months. Yes, the resale market is crazier than before.
For a couple of months now, I had to add this section to my market update. We are seeing more and more people moving and/or purchasing their second home in South Florida since the lockdown last year started. Between the: Record-low mortgage rates, intense demand for housing, Florida’s low taxes, low inventory, homebuyers leaving tax-burdened states to purchase in Florida, and increased interest from international buyers are all boosting Miami real estate. Florida offers so many things and welcomes people from everywhere either running from their below zero temperatures or coming from other countries to our beautiful and attractive city.
Now let’s talk about luxury homes. Luxury Home Sales jumped in January. Single-family luxury homes in Miami jumped 203% year-over-year to 200 sales in February and increased from January to 167. The highest home was sold for $21M a stunning and fantastic waterfront estate with over 8,000 Square Feet situated on the Venetian Islands. As you can imagine and with the numbers I am providing to you the Luxury Market is on fire too! People are moving!! We are in a robust market for luxury single-family properties.
We had a total of 1,594 new listings which is up from the previous month with 1,541 and 4.8% down from last year. Even though we got more listings in February compared to January, we still need more new inventory. Sellers, take note my friend you don’t have competition yet!
As far as the median time to contract in February it took 30 days to contract an increase compared to last month January and a 53.8% decrease from the previous year.
Let me give you some insights, Buyer who is watching me, if you are thinking of buying a house soon please look for help. Like I previously mentioned, I uploaded a very helpful video last week where I give you some tips on how to win this crazy market and I have to say that you need an agent who really understands this market. If you would like to schedule an appointment with me and talk about how I can help, please reach out to me. All my info is below. If you are in another city or state thinking to move or to buy your second home or investment, yes we can do a virtual appointment to meet you and see how I can help.
Right now you don’t have competition because we are still not seeing a lot of inventory. If you would like to know your home’s new value, please complete the form below and you will be surprised by today’s value of your home. Also, if you are thinking of selling but you would like to know if it is a good time for you to do it, please contact me. I will be glad to clarify all your questions.
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