It is not a surprise to anyone, that after COVID-19 hit the U.S. back in March, lots of things changed and the effect was unmeasurable. However, Miami real estate, as opposed to what most predictions said, is having a great recovery and is coming out with surprising strength.
New trends came to life in March, and they kept on growing. Starting with the rising preference for houses over condos, Miami's single-family home market is over the roof lately. It seems only logical that people are looking for bigger living areas, as the risk of being stocked in a tiny unit is pushing more than one into neighborhoods like Miami Shores or Key Biscayne.
Out-of-state home buyers are coming to Miami looking for houses, but the fact that there is only an available inventory of 0.67% of all single-family homes in Miami Dade, is benefiting the Miami condo market.
In the first quarter of 2020, there was the same number of transactions of single-family homes, as of condos. In the second quarter, the single-family home transactions peaked at 85% compared to 15% for condominiums. And in this last quarter of 2020, the condo market had a sudden recovery increasing to 35% of the transactions compared to 65% for houses.
Houses are selling like hotcakes, with 7.3 months of supply in May, to 3.2 months in August, single-family homes owners couldn't be happier! The low supply, and the soaring demand, has pushed the median price from $375,000 in May to $425,000 in August, which is the highest on record.
The preferred single-family homes neighborhoods in the last months have been Miami Shores, Palmetto Bay, and Key Biscayne. Firstly, Miami Shores showed an increase in the volume of sales of 42.6% from Jun-Aug. Palmetto Bay followed with a 6.3% increase. Finally, Key Biscayne featured a 43% rose in the total dollar volume sales.
The condo market has also had a great (yet not as pronounced) evolution. With 24 months supply and a median price of $259,000 in May, to 12.8 months and a median price of $275,000 in August, the market has profited from these unpredictable times. However, the overstocked condo market has kept the industry as a "Buyer's market".
Another interesting trend that has been created over the past few years, but accelerated by the pandemic is the local vs. foreign home buyers indicator. In 2010, the ratio was 49% for foreign buyers, versus 21% for locals. This year the numbers flipped, and now foreign buyers are only 23% versus 49% domestic.
Miami is showing a really strong real estate market, as in these uncertain times, people want to invest in tangible things.