According to the public records compiled by Cranespotter, Miami’s real estate has suffered of a downshift that is just now starting to recover.
Out of 350 units over the $5 million dollars that are today on the market, only 6 units are sold per month. And out of this closed deals, 96% of them had to decrease their price for closing. However, the average percentage of reduction is only 5% under the listing price. Investors are just trying to get rid of their South Florida real estate assets.
According to the MLS, the home sales year-over-year has fell in May for the Miami-Dade and Broward counties. This is probably due to the increase of median price in properties in these areas. Palm Beach, however, did make an exception with a slight plunge of price which means that their home sales actually increased. Surprisingly, the market which saw an increase of closed sales in April dipped this month.
Last year, we saw the drop of condo sales in almost all neighborhood except in the Downtown and South Beach area. In Brickell, the sales has dropped by an average of 5% while in Edgewater, it dropped by an average of 9%. This trend has been caused by the high inventory of luxury condos available for sale. In fact, there is currently a four years supply of luxury condos in the market.
This high inventory also contributes to a growing concern to real estate developers. There is a difficulty of selling new pre-construction units. Developers are postponing their projects in hope for a better market. Read the rest of this entry »
In 2008, the housing crisis in the United States left many people in a state of panic. The housing market collapsed and prices dropped. It took 5 years for the market to recover (for example, a unit in Murano Grande was sold for only $1.85 million in 2012 whereas last year it was sold for $2.55 million, a 37% increase). Now, United States’ neighboring country might face the same situation.
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In a previous article, I told you we were in a seller’s market. But where are we heading? Even though there is still a lack of homes for sale, the mortgage rates are, slowly but surely, going up. As a consequence buyers could become scarcer. Here’s a look at four items to better understand the rebound of the housing market at a national level.
First of all, the real estate market shifted in a short amount of time. In a regular market, prices increase after the inventory of houses for sale shrinks. In this unusual recovery, things went the other way around. Without shrinkage of inventory, developers decided to increase prices. They actually even admitted they pushed prices too far. For instance, when you compare the new home orders year-over-year, the demand only increased 1% in August against 11% in July. Nowadays, purchasers are more thoughtful before investing in a condo.
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