The numbers are in through May 2018 for Miami-Dade County according to MLS.
Sales of single family homes are down 8.5 percent versus May 2017. Yet, the median price is up 6.7 percent as is also up the total dollar sales 3.4 percent. Inventory is stable at six months based on current sales. These figures can be encouraging to some homeowners and maybe fuel the perceived seller arrogance in holding the line on pricing.
Further, according to Joe Mellman who is Spokesman at Transunion, “People have more equity now than they did at the height of the housing bubble, partly because of climbing prices and partly because people are staying in their homes longer, which gives them more time to appreciate. At the same time, we haven’t seen people borrowing as much from their home equity as they did in the past”.
Buyers have the very difficult task of competing for homes in a market where sellers are listing their homes at prices that have increased so rapidly and are not very willing to negotiate.
How long will the appreciation last? Some predict we’re due for a market correction after a nearly nine-year run combined with the increase in interest rates. It seems that homeowners are in a much stronger financial position to weather the change this go-around.
The condo and townhome market numbers show sales are up .6 percent versus May 2017. The median price has increased by nearly 8.9 percent and the dollar sales volume by 24 percent. The figures are offset by a dismal 14.1 months’ supply of inventory. The numbers include closed sales of condos which were sold pre-construction at prices that are higher than today’s resale values.
Buyers behold the opportunity in condos right now. According to the Downtown Development Authority the next cycle for new buildings is not until 2021, which makes sense considering the amount of inventory which must be absorbed.
Overall, where are home prices headed? When you read the CoreLogic Home Price Index, prices are forecasted to slow to a 5 percent increase over the next twelve months. Still, much better than the current inflation rate.
Another aspect, Home Advisor reports that “Many people who could ordinarily want to move to a different home are making the decision to stay put and improve or repair the home they already have. In fact, 84 percent of homeowners report having no plans to sell their current primary residence within the next 12 months and half of homeowners are considering a remodel – despite the fact that nearly two-thirds would actually prefer to purchase a new home that meets their needs.”
As this market continues to evolve the resounding message is that there are opportunities for consumers to investigate. One question a homeowner that is considering selling must answer is, where will they move to next? With that answer as motivation the market provides plenty of options.
Frank DeValdivielso, a member the Miami FL Team and The Keyes Company, is based out of 2423 Le Jeune Road, Coral Gables, FL 33134. For more information you can reach Frank at his office, 786 378 8450, or cell, 786 273 8507. You can also email him at RealEstate@MiamiFLTeam.com and please be sure to visit www.MiamiFLTeam.com for the latest listing and news regarding real estate. Call to sign up for a free monthly market report of your zip code.