Thanksgiving week is normally the start of a slow time for real estate sales. Not for EWM, however. Our Miami-Dade EWM offices totaled almost $23,000,000 in sales and leases.
Tag: Miami Real Estate
Pending home sales from March through November are up 46% in Miami-Dade County. The number of homes pending is important because there is normally a one to two month lag between the time a property goes under contract and when it actually closes. Once a home is pended in the Multiple Listing Service it does not show up as available inventory. Although not all pending sales actually close, it is a pretty good indicator of future home sales.
48.5% of the increase in sales reported by NAR were under $250,000. In the South, 51.6% of the sales were under $250,000. The increase in sales was largely due to the expiration of the first-time homebuyers credit, which President Obama ended up extending and expanding. Most experts expect the next couple of months sales to slide back a bit.
48.5% of the increase in sales reported by NAR were under $250,000. In the South, 51.6% of the sales were under $250,000. The increase in sales was largely due to the expiration of the first-time homebuyers credit, which President Obama ended up extending and expanding. Most experts expect the next couple of months sales to slide back a bit.
Third quarter commercial sales decreased 70% across the board from last year’s third quarter sales. The price per square foot fell
- 12% for office
- 14% for multi-family
- 23% for industrial and
- 9% for retail.
Although the number of homes in foreclosure decreased in October from the same time last year, the overall number of foreclosures are still high and some experts think it will rise. According to RealtyTrac, there were 7, 741 foreclosures in Miami Dade as of October. Most of the first round of foreclosures were sub-prime and adjustable-rate mortgages that became unaffordable once interest rates reset. The potential for another round of foreclosures is due to the large amount of negative equity many people currently have in their homes and the high unemployment rate, 11.3%, in Miami-Dade County.
This new round of foreclosures will keep real estate prices low, and may push them lower, unless the current sales trend continues and a balance is reached where inventories are stable at a 6 – 9 month supply. The recently extended and expanded First Time Homebuyers Tax Credit, continued low interest rates and real estate prices that have retrenched, should help keep sales moving and inventories decreasing. The graph below is for single-family homes and condo sales for Miami-Dade County. Some areas within the county are already at a 6-9 month supply level.
According to the National Association of Realtors third quarter report, sales are up throughout most of the country. The biggest increase in sales was in Florida at 36.8%. This is no surprise considering that we are also the state with the highest number (9 out of the top 15) of metro area price decreases in the double digits. Miami-Fort Lauderdale-Miami Beach metro area had a price decrease of 24.6 percent. What this means to you depends on whether you are a:
- Seller – Pricing is everything in this market. Although sales are up, the high unemployment rate and continued high inventories mean that prices will not be going up any time soon.
- Buyer – If you are waiting for the bottom of the market, you probably missed it, but high inventory levels, low interest rates and the extension and expansion of the First Time Homebuyers Tax Credit, still equal a great time to buy.
- Investor – There are and will continue to be good buys but the high unemployment rate and inventory levels will continue to put downward pressure on rental and vacancy rates across the commercial/investment sector.-
More detailed information regarding specific real estate markets in Miami-Dade County can be found in Miami Real Estate – Single Family Homes Market Summary
With so many foreclosures on the market today, many buyers think they can get a good deal in a foreclosure. Sometimes foreclosures are not the best deal. This apartment was stripped bare, including the entire kitchen, all bathroom fixtures, the doors, baseboards, even the air conditioner was ripped out! There was no way to do an inspection.
To minimize his risk, the buyer had several contractors come through to determine the cost of replacing everything and took those costs into account in his offer to the bank. His offer was accepted and he got a very good deal compared to the price of other recent sales in the building.
Below is a quick snap shot of what the real estate market for single family homes looked like in October. These numbers are derived from the Multiple Listing Service and though they do not include For Sale By Owners and anything not listed on the MLS, they are indicative of what is going on in our local markets. The closed sales may be slightly underestimated due to the lag time in posting the sale in the MLS.
Coconut Grove
- Closed Sales: 14. 3 short sales, 1 REO. Highest Sales Price: $1.7 million. Lowest Sales Price: $154,900.
- Pending Sales: 22
- Active Listings: 177 down from 217 at end of Sept. Highest List Price: $18 million. Lowest List Price: $65,900.
- Summary: Inventory is down from the end of the third quarter.
Coral Gables
- Closed Sales: 33. 1 short sales, 2 REOs. Highest Sales Price: $5.15 million. Lowest Sales Price: $358,000.
- Pending Sales: 89
- Active Listings: 432. Highest List Price: $49.5 million. Lowest List Price: $235,000
- Summary: Inventory decreased to 432 down from 450 at the end of the third quarter. The number of closed sales that were short sales or REOs are down significantly from the end of the third quarter, when there were 11 each closed short sales and REOs.
Key Biscayne
- Closed Sales: 3. 0 short sales, 1 REO. Highest Sales Price: $3.5 million. Lowest Sales Price: $820,000.
- Pending Sales: 4.
- Active Listings: 129. Highest List Price: $24.950 million. Lowest List Price: $789,000.
- Summary: Sales are down, inventory is the same as of the end of the third quarter.
Miami Beach
- Closed Sales: 13. No short sales, 4 REOs. Highest Sales Price: $9.7 million. Lowest Sales Price: $240,000
- Pending Sales: 53
- Active Listings: 380. Highest List Price: $29.9 million. Lowest List Price: $200,000.
- Summary: Inventory has decreased slightly. The number of closings that were short sales or REOs have decreased significantly since the end of last quarter.
Palmetto Bay
- Closed Sales: 6. 1 short sale, 1 REO. Highest Sales Price: $625,00. Lowest Sales Price: $142,600.
- Pending Sales: 52
- Active Listings: 154. Highest List Price: $2.85 million. Lowest List Price: $155,000.
- Summary: The number of closed sales due to short sales is down significantly from the end of September.
Pinecrest
- Closed Sales: 14. 1 short sale and 2 REOs. Highest Sales Price: $2.6 million. Lowest Sales Price: $419,000.
- Pending Sales: 35
- Active Listings: 211. Highest List Price: $5.9 million. Lowest List Price: $349,000.
- Summary: Although the inventory in Pinecrest decreased slightly from 227 at the end of September to 210 at the end of October, the current inventory level divided by the number of sales closed in October result in a 15 month supply of properties. The median price of current listings is $1.395 million and 30% of the listings are over $2 million.
South Miami
- Closed Sales: 3. 0 short sales, 1 REO. Highest Sales Price: $325,000. Lowest Sales Price: $266,000.
- Pending Sales: 30
- Active Listings: 68. Highest List Price: $1.880 million. Lowest List Price: $62,300.
- Summary: The number of closed sales is down slightly from the second quarter, which had 28 closed sales. Inventory is up from 28 at the end of June.
The National Association of Realtors reported a 21.2 percent increase in pending home sales for the month of September. This is the 8th consecutive monthly gain so, what does that mean in terms of the real estate market? The answer, as always, is it depends on the location. The NAR number is a national number so it takes in the number of pending sales across the country. There are some areas of the country, such as the Northeast, that had a decrease in pending sales from August to September.
On a national basis, the increase in pending home sales bodes well for the housing market since most pending sales result in closed sales within 1 – 4 months. If you are currently trying to buy or sell real estate, you need to look at what all the numbers are doing in the location where you are buying or selling. In addition to looking at pending and closed sales; look at the inventory; price per square foot of listings, pending and recently closed sales; and the number of short sales and foreclosures in each category. All of these numbers will give you a good picture of what is going on in your market and will guide you in your offers if you are a buyer and your pricing if you are a seller.