While some areas of the nation might be struggling to sell homes, that’s certainly not the case in Miami. In fact, the Miami real estate market for most of South Florida is very strong. How strong? Homes are selling for close to their asking price, which is a true accomplishment.
The Miami Association of Realtors notes that home sales in the Miami real estate market for January 2018 were up by 5.1% year over year in comparison with the same period in 2017, with $791.3 million in just the first month of the year. Note that this figure does not include the sale of any of the area’s multi-million-dollar properties, either.
Another good sign for the Miami Real Estate Market
Most homes sold very quickly. The average time under contract for a single-family home in Miami was just 47 days after its initial listing. For the same period in 2017, it was 61 days. Even closing times are faster this year, averaging just 98 days. In comparison, it took an average of 113 days to close in 2017.
The good news applies to the entire real estate industry, as well, not just to single-family homes. Miami apartments took just 123 days to close, with 75 days under contract. That is down a full 10 days from 2017 figures.
Of all these properties, most homes sold for very close to the asking price, an indicator that the demand for housing is beginning to outstrip the supply. This makes it a seller’s market, putting the power in the hands of property owners. In fact, there were more than 300 fewer homes available this year than there were in 2017.
With that being said, apartment owners might find that their prospects are not quite as good as they are for single-family home owners. There is a significant surplus of apartments on the market currently (14 months’ worth), meaning that most of the bargaining power in this situation rests with the buyers. Still, the swift pace of apartment sales shows that there is still plenty of demand.
As case in point, consider the fact that most of the luxury properties in and around Miami are not available with an FDA mortgage, and the fact that real estate prices in the area have risen for 74 months without stopping. Condo pricing has kept pace with single-family homes, meaning that owners are still in a prime position to profit from the sale of a condo or apartment.