The inventory
for the Miami-Dade County real estate market increased 36.2% in June 2014
compared to June 2013, and sales went down 6.1% for the same time period. So far in July the total amount of inventory is
almost identical to June. Sales so far
for the month are also slightly less than last month. Currently, there are roughly seven months of
inventory. July’s properties for sale
are - single family homes at 5,651 and condos/townhomes at 10,615.
Out of all
the homes on the market for sale, 84% are regular sales, while distressed
properties (REO’s and short sales) account for 16%. In the single family home segment, distressed
properties make up 21% of the inventory, as opposed to making up only about 13%
of the condos/townhomes segment. The
percentages of distressed properties and regular sales have remained consistent
throughout the last few months. REO’s
make up 9% of total inventory, while short sales account for just under 7% of
the total inventory.
So far this
month, a breakdown of what type of sales that have taken place and their
percentages are very similar to what sold in June. June’s closed sales breakdown are as follows
– Single Family Homes – REO’s 24.7%, Short Sales 12.0%, and Regular Sales 63.4%; Condos/Townhomes – REO’s 23.5%, Short Sales
6.9%, and Regular Sales 69.6%.
Owner
occupiers make up the biggest segment of buyers in the market. Foreigners, as well as investors, still
continue to purchase many condos in newer developments in Downtown, Midtown, Miami
River area, and various other areas of Miami Beach. Investors aren’t purchasing as many
properties as in the past because the return on investment is worse than before
because of slightly higher prices.
Multiple offer
scenarios take place on homes that are priced below market value. In these cases, most of the offers are
financed with very few being cash. It is
extremely rare for there to be more than one cash offer in multiple offer
scenarios. Many times, all the offers
received are finance offers, with lower downpayments than in the past.
Cash sales for
the last few months have varied slightly and are now at around 58%, compared to
56% last month. In the Single Family
Home segment, only 44% were cash. In the
Condos/Townhomes segment, 69% were cash sales.
Each month Condos/Townhomes make up approximately 55% of all sales. Since a much higher percentage of sales in
this segment are purchased from Foreigners and Investors, there are much more
cash sales in this segment.
The real
estate market has stabilized quite a bit in the last few months compared to the
last quarter of 2013 and the first quarter of this year. In that time period, each month there was an
increase in inventory and usually a decrease in sales. Now month after month, every month is very
similar to the past month in all the categories mentioned throughout this
report. If this trend continues, the
real estate market will be a balanced market with a three to five percent
appreciation in most markets, it will take longer to sell homes, there will be
more offers with smaller down payments, and cash sales will decrease.
