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

 

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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 | 786-301-5357 [email protected]

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