Category: Market Summary

Find out the real estate trends in your area

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Luxury Real Estate Market Summary

Miami Real Estate – Pending Home Sales Jump In January

According to the Miami Realtors Association, January total pending home sales jumped 28% over January 2010 and increased 2.5% from December.  Pending sales were as follows:

  • condominium: increased  37.2 percent compared year over year.  Increased 3.3 percent from December.
  • single-family homes:  increased 15.531 percent from January 2010.  Increased 1.4 percent from December.

Although this jump in pending sales has put a dent in the overall inventory, I expect inventory to inch up a bit now that SuperBowl Sunday is over and people start to focus on the Spring selling season.  However, properties that are priced right are definitely selling as first-time homebuyers and investors jump back into the market.

The luxury market still has a way to go in chipping away at the inventory levels.  As of today, there are 1143 single family homes listed over $1,000,000.  37 are currently pending (25 went pending in January) and 11 closed in January.  Depending on whether you look at pending sales or closed sales per month, based on current numbers we have between 46 (pending sales) and 104 (closed sales) months worth of luxury inventory.  Considering 6-9 months represents a stable market, we have a ways to go.

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Buying Coconut Grove Foreclosures Market Summary Selling

Coconut Grove, FL Real Estate – Market Summary

Market information from the Multiple Listing Service for single family homes for the month of January are as follows:

  1. Closed sales:  8.  None were short sales, 7 were REOs. 5 were cash sales.
  2. Price range of closed sales: $565,000 – $48,000
  3. Pending sales: 12.  2 short sales, 1 REO
  4. Price range of pending sales: $2.39 million – $57,900
  5. Active listings: 176.  18 short sales, 5 REOs
  6. Price range of active listings: $16.9 million – $49,900 (no, I didn’t forget a zero!)

Distressed sales made up less of the sales going to contract in January, but made up the majority of closed sales.  the actual closings for the month are of regular sales.  Based on the number of active listings, distressed sales make up 13% of the market.

What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market.  Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price.  If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced.  Cash was king in the distressed sales for January, so if you are going in with financing, make sure you have a very tight offer, including your pre-approval letter for a mortgage, a realistic deposit, and good timing for inspections and other due diligence.

What does this mean if you are a seller? You have a lot of competition so price really does matter, especially in the higher price ranges (84 of the current active listings are over $1,000,000, but the highest closed sale for January was under $600,000).  Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities.  Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint.  The good news is that if your house is priced right compared to your competition, it will sell.

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Commercial Real Estate Foreclosures Market Summary Neighborhood News

Still Doubt An Economic Recovery Is Taking Place In Miami?

There was so much good news about economic activity in the Miami Today, today that I had to share some of the ones that popped out at me.  In addition to the one about all of the economic growth numbers from November (see tomorrow’s post), the following things jumped out at me as a good sign that Miami, despite the economic downturn, has continued pursuing projects that focus on long term growth

I point all this out because it is easy to focus on the negatives of unemployment, short sales, and foreclosures, all of which are very real and very painful.  The fact that companies are investing here, tourists are visiting, inventories are getting absorbed, and developers are getting ready to start building again, all tell me that we are bouncing along the bottom, but the end is in sight.  Since unemployment is a lagging indicator, it will be one of the last economic indicators to pick up.  All of the items listed above will help the unemployment rate, which in turn will further help stabilize our battered housing market.

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Market Summary Miami Beach

Miami Beach, FL Real Estate – Market Summary

5 Star Island Dr., Miami Beach
5 Star Island Dr., Miami Beach

Market information from the Multiple Listing Service for single family homes for the month of January are as follows:

  1. Closed sales:  8.  Two were short sales, two were  REOs. 4, including the $2.7 million sale, were cash sales.
  2. Price range of closed sales: $2.7 million – $370,000
  3. Pending sales: 58.  27 short sales, 8 REOs
  4. Price range of pending sales: $6.8 million – $195,000
  5. Active listings: 353.  26 short sales, 4 REOs
  6. Price range of active listings: $50 million – $199,000

Distressed sales are still making up the larger part of the market in terms of listings going to contract.  Based on the number of active listings, distressed sales make up about 8% of the market, but half of the closed sales.

What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market.  Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price.  If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced.  If you are going to make an offer on a short sale bring patience and realize that when the bank finally does answer, they may ask for more than what you offered, even if what you offered was the full asking price.

What does this mean if you are a seller? You have a lot of competition so price really does matter.  Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities.  Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint.  The good news is that if your house is priced right compared to your competition, it will sell.

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Buying Market Summary Pinecrest Selling

Pinecrest, FL Real Estate – Market Summary

Market information from the Multiple Listing Service for single family homes for the month of January are as follows:

  1. Closed sales:  7.  None were short sales or REOs. 2, including the $2.1 million, were cash sales.
  2. Price range of closed sales: $2.1 million – $570,000
  3. Pending sales: 29.  16 short sales, 3 REOs
  4. Price range of pending sales: $2.75 million – $265,000
  5. Active listings: 184.  20 short sales, 4 REOs
  6. Price range of active listings: $5.7 million – $300,000

Distressed sales are still making up the larger, 65%, part of the market in terms of listings going to contract, but the actual closings for the month are of regular sales.  Based on the number of active listings, distressed sales make up 13% of the market.

What does this mean if you are a buyer? Based on the number of active listings to closed sales, there is still a lot of inventory to work through, so it is still a buyers market.  Once you narrow down your price range and specifications however, there won’t be as much to choose from, so use the statistics and market information to negotiate your price.  If the house you like is a regular sale and it is priced right, you won’t have as much room to negotiate as you will on one that is overpriced.  If you are going to make an offer on a short sale bring patience and realize that when the bank finally does answer, they may ask for more than what you offered, even if what you offered was the full asking price.

What does this mean if you are a seller? You have a lot of competition so price really does matter.  Look at the active sales that most closely match your home in terms of size, location, updates, lot size, amenities.  Consider pricing it 10-15% below your closest competition, make sure it has great curb appeal, and de-clutter and freshen up the inside with some elbow grease and a fresh coat of neutral paint.  The good news is that if your house is priced right compared to your competition, it will sell.

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Market Summary Selling

Waiting Until After The Super Bowl To List Your Home?

Common belief in the residential real estate industry is that nothing happens until after Super Bowl SundaySuper Bowl Sunday, which this year happens to be February 6.  Many sellers hold off on listing their home until after then.  That may be a mistake.  Sales are currently up.  In Miami-Dade County, 893 single family homes and 1,397 condos or townhomes have gone under contract since January 1.  Buyers are out there and you will have a lot more competition after Super Bowl Sunday.

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Coral Gables Market Summary Pinecrest

Housing Reports Expected Next Week

While the local real estate news has been giving us a snapshot of what has been happening in Miami’s real estate housing market, several housing reports are due out next week, which will give us a national picture of how the housing recovery is fairing.

  • Tuesday –  S&P Case Shiller home price index:  this index tracks changes in the value of residential real estate at both a national level as well as in 20 metropolitan regions (Miami is one them).  Although it is calculated monthly and is released on the last Tuesday of every month, it is published with a two month lag.  Tuesday’s report will include values through December 2010.
  • Wednesday – new home sales :  this report is based on a survey conducted by the U.S. Census Bureau that starts with the number of building permits authorized for single family homes .
  • Thursday  – pending home sales :  this index is prepared by the National Association of Realtors (NAR).  Because this report looks a homes that are currently under contract, it gives a good picture of where the housing market is headed in the next couple of months.  Although many of the pending sales fall through due to a variety of reasons (buyer’s don’t qualify or they get impatient waiting for a bank to approve a short sale are the main reasons in today’s market), many of the sales will close thereby absorbing inventory.

As of today, pending home sales in Coral Gables currently stand at 72 (24 since 1/1/11) versus an inventory of 410 active listings (45 new listings since 1/1/11).

Pinecrest pending home sales are 30 (7 since 1/1/11) and active homes for sale are 196  (17 added since 1/1/11).

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Buying Foreclosures Market Summary

Miami Real Estate – Foreclosures and Shortsales

As of December 2010

REO Homes were 12% of Total Inventory and 41% of Total Sales

Single family home Short Sales were 32% of Total Inventory and 19% of Total Sales

REO Condos were 9% of Total Inventory and 46% of Total Sales
Condo Short Sales were 32% of Total Inventory 22% of Total Sales

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Buying Market Summary Selling

Miami Real Estate – 2010 Snapshot

For single family homes as of December 2010:

  • Median Price $172,000 vs $400,000 peak in May of 2007
  • 8156 single family homes listed on the MLS vs a peak inventory of 17,070 in July of 2008
  • Currently there is a 10 month supply.  A 6-9 month supply is a stable market, so we are getting closer.

For condos as of December 2010:December 2010

  • Median Price $101,000 vs $215,000 peak in January of 2008
  • 15,116 condos listed on MLS vs 24,905 at peak in May of 2008
  • Currently there is a 12 month supply, so we still have a ways to go to stabilize the condo market.

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Buying Luxury Real Estate Market Summary

Miami Open House Weekend 6-27-2010