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How COVID-19 Has Affected the Housing Market Thus Far

7,358 single family homes sold in all of Miami-Dade County by this time in 2019.  As of July 8, 2019 only 5,963 homes have sold in Miami-Dade.  Yup, as expected closed sales have gone down given we’re currently in the midst of the largest and most deadly pandemic since the Spanish Flu - Covid-19. Condos sales have endured a similar fate with 7,826 units closing in 2019 vs 5,624 units in 2020.  The difference between both it’s Pending Sales or properties recently placed under contract, which Single Family Homes had a 50% increase in the month of June compared to last year and condos had a marginal gain of roughly 4%.   A tale of two stories. 

Both numbers are being fueled by buyers not only from within Miami-Dade but also outside of the state of Florida (i.e. New Yorkers).  Not surprisingly, most buyers are looking for a piece of land to call home as opposed to a condominium.  In my opinion, this will be the trend going forward until a tested and effective vaccine is found that gives prospective buyers and tenants some peace of mind that moving into a condo is as safe as living in a single family home without common areas and/or shareable spaces. 

For those of you that need to buy or sell the real question is “Can I get a better deal?” if I’m a buyer or “ Is it the right time to sell?” if I’m an owner.   The short answer is if you’re a single family home owner in Miami-Dade looking to sell, this is a great time to do so!  If you’re a condo owner not as much but if you need to sell, pricing is everything at this time. 

To drill down to your specific zip code click here to see how your neighborhood is faring…

To explain this trend I’m using data from Altos Research which utilizes a metric called “Market Action Index.”  A number above 30 represents a sellers market and under 30 represents a buyers market.  

In Miami-Dade county, single family home sales continue to outstrip supply and the Market Action Index has been moving higher for several weeks. This is a Seller’s market so watch for upward pricing pressure in the near future if the trend continues.

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In Coral Gables, the market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes. Yet, sales price per square foot has been increasing steadily even through the pandemic showing upward pressure on inventory levels.

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In South Miami, Home sales continue to outstrip supply and the Market Action Index has been moving higher for several weeks. This is a Seller’s market so watch for upward pricing pressure in the near future if the trend continues.

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In Miami Beach, Single Family Homes sales have been exceeding new inventory for several weeks. Since this is a Buyer's market prices are not yet moving higher as excess inventory is consumed. However, as the supply and demand trends continue, the market moves into the Seller's zone, and we are likely to see upward pressure on pricing.

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Miami Beach Condominiums; the market has shown some evidence of slowing recently. Both prices and inventory levels are relatively unchanged in recent weeks. Watch the Market Action Index for changes as it can be a leading indicator for price changes.

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Check your zip code here; and of course, if you’d like a more detailed valuation report we’d be happy to prepare one for you “sin compromiso”!  Just shoot me an email or a text at 305-496-6693.  

 

Have a great one! 

 

Josh Garcia , Real Estate Associate
Berkshire Hathaway HomeServices EWM Realty
550 S Dixie Highway 550 S Dixie Highway
Coral Gables, Florida 33146

305.496.6693 Direct
1.305.960.5313 Office
1.305.437.8028 Fax
josh.garcia@miaprime.com

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