If you are facing the competitive Miami-Dade real estate market, looking for a house or condo at a moderate price, know that it is no longer enough to have a pre-approved mortgage loan or be flexible with respect to location.
Nowadays, we must act quickly.
“So many people are looking for properties in the price range between US $ 180,000 – US $ 225,000 that buyers can not afford to say:” Let me think about it and answer them later, “said Justine Jiménez García, owner and broker of Countywide Properties Inc. “This has been going on for a while, but now it’s getting worse.”
For example, Garcia said the demand for a condominium that he listed two weeks ago at 13541 SW 64th Lane in Kendale Lakes was so high that the seller immediately received five offers, including one above the price of $ 269,000. The property is currently under contract.
While developers focus on Brickell and Wynwood, and tourists have fun in Miami Beach and the Design District, a growing number of venues are flocking to countless suburban neighborhoods to snatch the remnants of a dwindling supply of affordable housing.
According to a new report from the Miami Association of Realtors, buyers are buying single-family homes and condominiums in areas such as Kendall, Westchester and Miami Gardens. The report is based on sales from January to March 2018, registered through the MLX.
Experts say that the national shortage of single-family homes and condominiums in the range of US $ 200,000 to US $ 300,000 is even narrower in Miami-Dade County. The culprits: investors who bought cheap after the recession of 2008 and have clung to the properties to rent them; the competition of foreign buyers who pay in cash and the shortage of construction of new medium-priced housing options.
‘A confluence of factors’
“We have a confluence of factors that are forcing the system into those affordable middle-class markets,” said Mike Pappas, president and CEO of The Keyes Company. “In the first quarter of 2015, there were 11,464 homes on the market with a price below US $ 300,000.Today, there are 5,143, that’s less than half.
“It’s a small and dynamic market, and this is not the Rust Belt, where people are leaving, more and more people are coming to Miami, and we have limited land and supplies, it’s an enigma.”
The real estate industry uses months of supply as a way to measure the health of a particular market. A six-month supply, which means that the number of condos or homes for sale would take six months to sell, is considered ideal.
The report by the Miami Association of Realtors showed that the supply of available condos for sale during the first quarter of 2018 was tighter at The Crossings (2.3 months), Sunset (2.5 months) and Three Lakes (2.7 months), all near Kendall; and in Tamiami (1.7 months) and University Park (3.3 months), both near Westchester. One factor that exacerbates the shortage is that these neighborhoods do not have as many condos compared to denser areas, such as Brickell or Sunny Isles Beach where prices are much higher.
For single-family homes, supplies are scarcer in Westview (1.6 months), Miami Gardens (2.3 months), Virginia Gardens (2.4 months), Hialeah Gardens (2.4 months) and Palmetto Estates (2 months). 6 months).
‘Price drives demand’
The limited supply in these neighborhoods is driven by the price, which is often lower than the Miami-Dade average of $ 337,000. The average sale price of a condominium in The Crossings, for example, was US $ 222,000. The median sale price of a house in Miami Gardens was US $ 232,950.
The monthly supply of condominiums and single-family homes was higher in the more expensive neighborhoods. The median price of a single-family home in Sunny Isles Beach was $ 800,000. That city has 45 months of inventory supply.
The average sale price of a condominium in Aventura was US $ 302,000. That city has 21.4 months of supply.
According to the report, the median price of single-family homes in Miami-Dade County grew to $ 337,000 in the first quarter, a jump of 5.9 percent compared to the same period last year.
The average price of existing condominiums reached US $ 230,000, thus increasing 4.5 percent.
But despite the increase in prices, the total number of existing home and condo sales in Miami-Dade decreased 6.5 percent from 6,169 to 5,770. The sales volume fell from US $ 2.7 billion to US $ 2.6 billion, year after year.
“When prices go up as sales go down, that reflects one thing: less inventory,” said George Jalil, broker and president of Real Living First Living Realty and president of the Miami Realtors Association 2018. “The smaller the inventory, the faster your home will sell, and when the number of buyers is greater than the number of available homes, you end up with a shortage of inventory.”
According to the report, sales of luxury single-family homes increased 16.2 percent year-over-year in the first quarter of 2018. Luxury condo sales increased 8.4 percent.
The time the available single-family homes were on contract decreased from 58 to 48 days, a decrease of 17.2 percent from the previous year. The condominiums also did it, from 83 to 80 days, a decrease of 3.6 percent.
Certainly, there is no shortage in the luxury condominium market: according to EWM Realty International, price reductions in the luxury condominium market (US $ 1 million or more) caused a 47 percent increase in December sales from 2017 to February 2018 with respect to the same period of the previous year. But the total supply of inventory is still 41 months, more than three times the 12 months of preferred inventory for the luxury market.
Cash sales accounted for 40.8 percent of all sales closed in Miami-Dade, double the national figure of 20 percent. Approximately 54 percent of condo sales and 27 percent of single-family homes transactions were made in cash.