Miami Market Sales Numbers are in for the 1st Quarter of 2020
According to the Miami Board of Realtors and the Miami Multiple Listing Service (MLS), the total home sale and prices are up year-over-year for the first quarter of 2020. Total home sales were up 6.8% year-over-year. Single-family homes went up 7.9%. Miami's condo sales increased by 5.8%.
"The real estate market has shown a strong expansion throughout the first quarter of 2020. With strong continuing sales, and an increase in pending sales as well as an increase in listings is an indication of pent-up demand later on in the year," said MIAMI Chairman of the Board Jorge L. Guerra Jr.
A highly upbeat projection! The Chairman does expand on his statement, that some areas of Miami will have different results and demand. In my opinion, the demand and supply, particularly in a certain price range, will determine what the market will do going forward. Certainly, COVID 19 will have an effect on sales, listings, and prices! No one knows what that will be until we go through the second and possibly third quarter of 2020.
This is totally non chartered territory and something that no one has seen before. The situation is not country-specific it is global. With the majority of buyers in Miami being outside of the USA, countries like Venezuela, Columbia, Brasil, Mexico, Canada, etc it is hard to predict the behavior of the market since those countries are having their own issues!
What does this mean for markets where we, condosandhomesmiami.com work, like Sunny Isles Beach, Aventura and the surrounding beachfront area of North Miami Beach?
I like to read and analyze the data, but unfortunately for every article that I read, I will find 2 more that contradict the one I just read. I am not a market analyst and do not do fancy graphs and charts, I like things simple, just plain vanilla, please! So this is my opinion based on the numbers that I see.
On average, there are usually around 1700-1800 give or take total active listings in the City of Sunny Isles Beach and around the same amount in the City of Aventura, just using these to as an example. As or this writing both Cities are showing slightly lover inventory, by about 5-10%. Most likely due to sellers taking their properties off-market because of COVID 19. Many of the condo buildings have locked down and have not allowed any Realtor showing.
And also we have the face masks and gloves and take every precaution recommended, we just can not do a showing if the seller or the building will not let us in. It is that simple. We also want to stay and be safe!
So What is Going on in Sunny Isles Today
So today a total inventory of all listings in Sunny Isles at exactly 1641 units. That includes homes, condos, townhomes, and condo-hotels, everything. Again as of this writing. In the 1st qt of 2020, the total number of units sold was 164 for 3 months. That is around 54 units/month. Keeping it simple, 1641 total units divided by 54 units sold per month gives us just a bit over 30 month supply. That is if everything keeps going the way it was in the first quarter!
Let's not start panicking or trying to create one, just look at the numbers in front of you. If anything, I see a tremendous buying opportunity. Real sellers will step up and list the properties at the proper market price and real buyers will come out and will pay the true market price. I do see potential multiple offers as the market will make the correction. Buyers that don't act will say "I should have bought" or "I could have bought" But that is always the case.
What Were the Market Movers In Sunny Isles
Let me try to break it down for you. 164 properties that have sold, ranged in price from as low as $69K for a studio condo-hotel at Marco Polo to a luxury beachfront Jade Signature condo, sold at $4.3mil. Let me show you the breakdown.
* Properties Under $200K Sold = 30 units
* Properties From $200K - 400K Sold = 53 units
* Properties From $400K - $1mil Sold = 52 units
* Properties From $1mil+ Sold = 29 units
As shown in the breakdown above, the majority of the properties sold were in the more affordable price range of $200,000 to $1 million. That is about 105 units out of 164 in total. Click on this link to see a running average of listed and sold properties in Sunny Isles we have prepared a running average Market Report so you can see the latest figures.
What About the City of Aventura
A total inventory of all listings in Aventura at exactly 1495 units. That includes homes, condos, and townhomes, everything. Again as of this writing. In the 1st qt of 2020, the total number of units sold was 250 for 3 months. That is around 83 units/month. Keeping it simple, 1495 total units divided by 83 units sold per month gives us just a bit over 18 month supply. That is if everything keeps going the way it was in the first quarter!
What Were the Market Movers In Aventura
Let me try to break it down for you. 250 properties that have sold, ranged in price from as low as $110K for a one bedroom at Point East a 55+community to a luxury Villa at Porto Vita sold at $2.85mil. Let me show you the breakdown.
* Properties Under $200K Sold = 59 units
* Properties From $200K - 400K Sold = 113 units
* Properties From $400K - $1mil Sold = 58 units
* Properties From $1mil+ Sold = 21 units
So from the looks of it, even if these two cities are not exactly the same, and they are not! Sunny Isles is more of a vacation, second home destination, where Aventura is more of a permanent residence community. The over all market condition is some what the same.
Majority of the closed sales have been in the $200,000 to under $1,000,000 price range. Yes I know that is a large difference in price, but still the buyers are looking for a more affordable housing. Living in Aventura is not exactly cheap. Depending on community or the complex you are in just the condo association fee could be around $600+ per month for a two bedroom unit. That does not take into account the taxes and special assessments.
So What is The Bottom Line
The bottom line here is this! If you are thinking of selling you luxury condo or a house that is over one million dollars you will find a tough market, and a longer time to sell situation. That seems to be the trend if you Are in Sunny Isles or Aventura. If you are looking to sell a property that is under $200K you could find yourself in similar situation. Since some of the communities in that price are 55+, and majority of the buyers are not in that age bracket. Or the condition factor may come in play, as some of these residences will require extensive upgrading, making the potential buyer stop and thing if it is worth the purchase.
If your property falls in the mid of the range, depending on condition, location, views and other factors. You could find that market is rather good. Again depending on how the property is priced to start with from the beginning. If priced competitively one could get multiple offers. If not, well you know the rest.
If you are thinking of selling, we do offer a FREE market report and analysis. There are no obligations and you are not committed to list with us. We will do our best to analyze the building and the community and show you what the number look like. Here is a link to the Sunny Isles Market Report and here is the one for Aventura Market Report