Tale of Two Cities : Miami Homes vs. Condos

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Tale of Two Cities :

Single-family Homes vs. Condos

 

People often ask how the market is doing, and the answer is almost always, “it depends”.  The recent slowdown in sales activity across Miami-Dade is well known, but this doesn’t tell the whole story.

When we delve into 3rd quarter numbers and compare the single-family market to the condo market under $1M in Miami-Dade County, it becomes clear that it is a Tale of Two Cities.

 

 Single-Family Home Market

(under $1M, Miami-Dade County)

 

  • The Single-family market under $1M remains a robust Seller’s Market, with only 4 months of inventory.
  • Low inventory and strong demand keep pressuring values up : Average and median prices have risen 8.66% and 11.6%, respectively, year over year. (updated November 2016)
  • Unlike the condo market which has a lot of new inventory currently under construction,  single-family homes, especially in non-flood zone areas, are insulated from an over supply of new construction.

 

The graph below shows the Months of Inventory for Single-family homes under $1M in Miami-Dade County. As you can see, this market has remained a Seller’s Market over the past 4 years, which has led to significant price appreciation.

Tale of 2 cities_line_SFH_line

 

 

Condo Market

(under $1M, Miami-Dade County)

                                                                                                              

  • The Condo market under $1M is a strong Buyer’s Market, with over 10 months of inventory.
  • Over the past 3 years, inventory has increased by 70%, as the pace of sales has slowed by 20%.
  • This creates downward pressure on prices, giving Buyers greater bargaining power.                                                                                                                                                                                                   

The graph below shows the Months of Inventory for Condos under $1M in Miami-Dade County. As you can see, the months of inventory have steadily increased from 4 to over 10, indicating a strong Buyer’s Market.

Tale of 2 cities_line_Condo

 

In today’s evolving real estate market, it is critical to work with a passionate Realtor that knows the market inside and out.

If you would like to discuss your local market, and how to sell your property for top dollar, contact Alex Larmier at 786-301-5357 or by email at [email protected]

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