Buyers, are you still waiting on the sidelines for the Miami real estate market to bottom? Well, you may already be missing the boat. For the past 10 months, the inventory of homes
available has
diminished by more than 30%. With the 93% increase in demand for properties (properties going under contract), the average price of properties sold has slightly increased for the second month in a row.
There are several factors driving this activity. Obvious factors include low
interest rates hovering around 5%, and the first time
home buyer tax credit offered through November '09. One would
argue that the primary increase in activity is attributed to the fact that housing has once again become affordable in Miami. Will prices continue to rise? My answer is "very slowly" for now. While we have a shrinking inventory and motivated buyers wanting to buy now, we also have a more strict mortgage industry. Part of what appears to be a price increase is simply the fact that we now have an increase in the sale of regular "non-distressed or non-foreclosure" properties. There are still many foreclosure and short sales
available, however the government has put pressure on banks to work out many of the
pre-foreclosures to help homeowners stay in their homes.
The bottom line is that we will probably continue to see more of the same for the next several years. Inventory will continue to decline, and sales should continue with low interest rates and overall affordability. Prices are
stabilizing, and as long as interest rates remain low, buyers will continue to buy. The well priced properties in good condition are moving fast and with competitive offers, while overpriced properties continue to sit on the market. Contact me for more information about the Miami real estate market.
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