People’s concerns regarding the effect of the Coronavirus in the South Florida Real estate market keep rising, and more studies results keep arriving with more interesting facts. This time it has to do with the drop of the residential inventory in the past weeks.
According to one of these studies, which researched the number of new listings (condos and single-family homes) in the most populous metro areas in the US. from March 1st- April 5th compared to the same period last year, the Miami metro area showed a drop of 30.7% in new residential listings. In the ranking, Miami was classified sixth, which shows there was a major fall compared to the rest of the country.
The same is happening in the luxury market in the Miami area. Properties priced over $1 million have shown an inventory drop. As the price of a property increases, it becomes harder to sell, but it gets even more laboriously when the seller or in some cases the management office, restricts showings and forces us to put the units off the market.
It seems interesting that for luxury condos in Miami Beach there was a rose in the inventory of 12.2%, but there was a drop in single-family homes of 19.1%. However, for almost the rest of Miami, the condo supply fell by 19.8% and the single-family home decreased too by 24.4%.
Home sellers are getting scared of putting their properties on the market with the Conoravirus crisis. There are different reasons why this is happening, but basically, homeowners are scared to let people into their properties to view the place. There is also a lot of financial uncertainty which is making sellers hesitant about whether they should o not sell their homes. However, when units are vacant, it is most likely that sellers will leave them on the market.
This is temporary and a rebound with new properties will arrive as soon as this is over. Miami showed a big drop, but this won’t last long. It is true that there are other metro areas with better rank, like Portland with 12.8% or Las Vegas with 12.2%, but Miami has a higher percentage of multifamily units, which logically will end up in a higher inventory plummet.
New strategies for realtors have become the only way to keep moving the real estate market. Embracing technology through virtual tours or virtual showings has turned out to be the best – and in some cases the only – way to do business.