I've been asked recently as to the purpose "vision", if you will, for this blog. It's meant to be an upfront, authentic, and honest space for communicating to consumers and colleagues my view of the state of the real estate market. While I try to be as expansive as possible, my emphasis is on the Miami Beach real estate market.
The latest residential market update:
Greater Miami/Ft. Lauderdale residential sales keep sliding
South Florida's housing market continues its slump.
In Miami-Dade County, existing single-family home sales in August dropped 45 percent from the same month a year ago and 24 percent from July. Broward single-family home sales in August were off 23 percent from August 2006 and 4 percent from July.
It was a similar story for condominiums. Miami-Dade condo sales fell 44 percent in August over last year and 16 percent from July. Broward condo sales were off 22 percent from last year and 2 percent compared to July.
This means the number of homes waiting for buyers continued growing -- from 60,900 in Miami-Dade and Broward in August 2006 to more than 80,000 this year. At the current rate, it would take 25 months to sell all of the single-family homes on the market in Miami-Dade, and 36 months for condos. It would take 21 months to sell all the homes in Broward, and 29 months for condos.
A GOOD SIGN
One bright spot: The pace of growth in the number of homes with ''For Sale'' signs slowed from last month. In Miami-Dade, the number increased from 38,672 in July to 39,736 in August; in Broward the number was actually flat over July, edging up to 40,297.
The inventory of Broward condo units actually decreased slightly in August. The reason- Broward condos are the one area where sellers reduced prices in a meaningful way! The median price dropped 12 percent over last August to $178,800. The median is the point at which half are above and half below.
This scenario will be the key to market recovery: Cut prices to spur buying, which will reduce the number of homes for sale! When prices start to relax and fall, it is part of the healing process to bring us back to a balanced market.
My advice IF YOU ARE A SELLER TODAY (OR NEED TO SELL PRIOR TO 2009):
- Work with a Top Producing Agent that's been in the business for at least six years (someone who knows how to work successfully in a buyer's market).
- Price your property correctly, take your realtor's advice on a realistic selling price. IF that means taking a loss, so be it. Sometimes, it's best to STOP the bleeding!
- Stay on top of your realtor, you should be in constant communication and monitoring all aspects of the marketing plan (yep, your realtor should have a marketing plan for selling your property).
- Consult with a staging professional, your property needs to look as good as possible. Staging professionals (such as a good interior designer) can transform the look of your home for as little as $400.
- Be ready to wheel & deal - be negotiable! Consider offering a few (or all) of the following to a potential buyer: seller financing, money towards closing costs, throw in some free furniture, artwork, flat screen TV, landscaping credit, etc. Recently, I had a buyer offer to purchase a multi-million waterfront property IF the owner would include his $70k appraised boat (they counter-offered them a regular credit instead).
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