Today I don’t feel like speaking about whether we should be scared of a housing bubble or not. Instead, let’s speak about the reasons why home sales are looking healthy, and not only in Miami but in the United States in general!
The first positive aspect: sales volumes have increased despite raising prices! We all know that prices are increasing and that there are fewer homes for sale. Price gains that don’t slow down the sales level, I see it as a pretty good sign!
Then, it’s not any kind of homes that are being sold. It is more particularly the sales of non distressed homes that are increasing. Indeed, a year ago 28% of the sales in April were foreclosure or short sales. In April 2013 only 18% of it were distressed homes.
Finally, homes are selling faster. 50% of homes that sold in April were in the market for only 46 days. A year ago you would see the same property staying on the market 83 days. Even more impressive 20% of homes went under contract in 1 week and 1/3 of homes went under contract in 2 weeks. That’s an improvement of 39% over a year ago. How can you doubt such data?
And of course I am not even speaking about the fact that buyers are buying cash, that developers are not lending money anymore and that the inventory is impressively low. It would only confirm the fact that at this point the real estate market looks healthier than it has ever been!