1st Quarter Sales 2024 - Miami Real Estate Market Update
The 1st Quarter #'s are out and we want to share them with you. By providing you with this information, our goal is to give you a deeper insight into the local real estate market here in Miami, and to help you make informed decisions about your home purchase and/or home sale.
We look at Single Family Homes and Condos in some of the more popular areas of the Miami Real Estate Market. To put the #'s in context we look at 1st Quarter data for the previous 5 Years going back to 2019 as we feel that was the last "normal" year of sales before the pandemic buying spree and it gives us a true barometer of what a normal year looked like in the Miami Real Estate Market. We also want to point out that we try not to use 2021 and 2022 #'s as those two years data was off the charts and unlike anything we have ever seen, and may ever see again.
We will also take a look at a rolling previous 4 quarters to get a better idea as to where the market really is and where it may be going. We have a lot to cover so let's jump right in.
Our Summary... While in the single family homes market we saw an increase in the # of sales from the 4th Quarter to the 1st once we looked at previous years 1st Quarter sales we can clearly see the # of Sales slowing down and reverting back to the mean. And while we noted that pricing has doubled over the last 5 years we have definitely seen the rate of pricing increases has slowed since the summer of 2022.
While in the Condo Market we only noted South of Fifth having an increase from 4th to 1st Quarter sales with the other areas decreasing or holding steady. When we looked back through the previous 5 years 1st Quarters we can see that the # of sales has definitely slowed down as well and yes seems to also be correcting itself back to a more normal pace of sales except that the Condo Market is facing some serious headwinds which we have addressed in prior videos but will point out again as we feel it needs the attention.
The Condo Market is dealing with skyrocketing maintenance fees and forced Special Assessment's which we feel is going to continue to affect the condo market for the foreseeable future until it all gets sorted out. We highlighted this in our previous video and feel THIS IS A VERY IMPORTANT part of the HOME SELLING and BUYING process so please take note.
Right now we are facing Higher interest rates, skyrocketing insurance premiums, and if buying a condo skyrocketing maintenance fees and forced Special Assessments. The other side of this no one talks about is… having to live in a building where the ongoing repairs affect one's quality of life as you have to deal with living in a building that is not only under construction and deal with all the noise, all the dust and debris. You have pools being closed for 1-2 years, balconies being closed for 4-6 months sometimes longer, etc. There are a lot of different factors affecting the condo market right now which in turn will affect pricing and demand especially for certain buildings. We are closely monitoring and will keep you posted.
How is the market doing in general... while we have noted that the # of sales has slowed and pricing increases is starting to slow also. The demand is still there where if you price your property correctly it will sell in under 30 days. If you don't price it correctly, we have started to see the # of days on market increase and there is an increasing gap between finished homes/condos versus those that need work. Listen to your real estate agents when coming up for a price to sell your property.
The Market is very sensitive to interest rates. We have noticed buyers ok when rates are 6-7% range but once they go over 7% we see a pullback. And with the Federal Reserve recently saying that inflation is still running a bit higher than anticipated we may not see any interest rate reductions this year. So, we will have to get used to these rates for the foreseeable future.
It is going to be an interesting year in the Miami Real Estate Market. It seems as if we are in a market correction and the market is getting back to a normal market in terms of # of sales while prices remain elevated. We have seen more supply but still below normal levels as Owners are still holding on. The market is facing some facing some headwinds which we just mentioned and again and we remind everyone that this is an election year which from our experience having been in the market for over 18 years can slow things down especially as we get closer to the Elections.
We will keep our fingers on the pulse of the market and report back to you soon. We love being able to provide value and to be of service. Thank you for watching, I am always available to answer your questions. We will see you soon. Have a great one.