How is the Miami, Florida Real Estate Market doing?

People ask me about the Miami Real Estate market all the time.  First, allow me to explain a simple market indicator: INVENTORY.

Residential Real Estate Inventory: a. the number of residential properties on the market or b. the number of months it would take to sell out of residential property if properties continue selling at the current rate and there is no increase in the number of properties placed on the market for sale.

For the purposes of this article, we will focus on definition b.

If there are 12 properties on the market, and they are selling at a rate of one property per month, the INVENTORY in that market is 12 months.  Is that a good market indicator or a bad market indicator? Read on to find out.

Healthy Market with stable values: 6-9 months of inventory

Market that is seeing or will see value APPRECIATION: less than 6 months of inventory

Markte that is seeing or will see value DEPRECIATION: more than 9 months of inventory

Our hypothetical market with 12 months of inventory will be seeing values DEPRECIATE.

The Real Estate Market in Miami (or Miami-Dade County as it is technically called) has had some radical changes over the past 7 years.

APRIL 2005 Miami’s Single Family Home market had just under 4 months of inventory (lowest inventory)

JANUARY 2008 Miami’s Single Family Home market had 43 months of inventory (highest inventory)

OCTOBER of 2009 Miami’s Single Family Home market had about 11 months of inventory

OCTOBER of 2010 Miami’s Single Family Home market had about 9 months of inventory

OCTOBER of 2011 Miami’s Single Family Home market had about 6 months of inventory

OCTOBER of 2012 Miami’s Single Family Home market had about 4 months of inventory

Inventory Plummeted Over the last 4 years

HOW ABOUT THIS YEAR?

2013: Clearly, the Real Estate market has recovered from the 2007 – 2009 collapse.  2013 has seen appreciation of up to 20% in some areas as well as a steady inventory of about 4 months.  This is an indicator of an appreciating market until we see an oversupply. Currently there are about 20 new buildings breaking ground in the Brickell/Downtown area.  The ones that have commenced pre-constructions sales have already sold out with the exception of the luxury penthouses in the millions.

The examples used in this article reflect sales inventory of SINGLE FAMILY homes.  Stay tuned for the stats on Condo/Townhouses and neighborhood breakdowns.  Until next time!

I specialize in Miami real estate, in particular Downtown, Brickell, Coconut Grove, South Beach & surrounding areas.  I value technology, communication & your time.  If you would like to meet with me regarding a purchase or sale of Real Estate in Miami, you can contact me on my cell 786-663-4382 or at paula@greatmiamihomes.com.  

Greatmiamihomes.com seeks to keep the public informed about Miami real estate market trends, new development projects, neighborhood information and, of course, great homes and condos for sale in Miami!


PAULA BARRERA

   

A modern agent for the modern client.

786.663.4382

paula@greatmiamihomes.com