Miami Luxury Market Update July 2013

Hi, welcome back to my blog!

I work a few markets: Coral Gables, South Miami and Pine Crest. These are higher end more luxury areas.

Last year, in Pine Crest alone there were 217 sales. This year to date, we have had 117 sales and there are current 50 pending sales. Inventory is low, though, only 130 active listings!

It is definitely a sellers’ market! It’s a different sellers’ market than the one we had 5-6 years ago, though. Buyers now are wiser and more sophisticated. The internet has been a great research tool for them; they know how much they should and shouldn’t pay for a home.

I just lost two buyers, who I hope to get back soon, because the homes were so outrageously overpriced. I even spoke directly with the sellers, asking for the comparables to show how they were coming up with the listing price. If they could do that, we would have made an offer, but they weren’t.

So, we are definitely in a crazy market! Buyers are willing to pay over the listing price if the home is in good condition and worth it. We are seeing some homes go above the listed price by $20,000-$30,000. We have multiple buyers.

I feel sorry for first time homebuyers who are using FHA because you are competing with all the cash buyers in the market. First time homebuyers have to buy homes that need a little more work or perhaps aren’t in the greatest condition.

The market is great, but we could use more inventory! So give me a call and we can get your home listed and sold right away!

How is the Miami Market Changing?

What’s the difference between our current Miami market and the market at his time last year?

The Miami market is changing. We are really seeing a shift; a year ago there were a lot more properties on the market, a lot of short sales and foreclosures and a lot of investors from Canada, Brazil, Argentina, etc.

We still have foreign investors coming. In fact, they made up about 30-40% of sales last year. Not only that, but they are bringing cash which helps stabilize the market.

This certainly helped the condo market. The buildings were in the red and couldn’t get FHA financing. In turn, a 25-30% down payment was required.

A lot of first time home buyers are shifting toward single family homes because 3.5% financing is so much easier to come up with a down payment for.