If I were to describe the 1st quarter of this year with one word, the word I would pick would be swift. Lately, I’ve gotten the feeling that time, as enduring as it may seem, has lately tried to force itself to pass. The fact that we’re almost at the end of April is almost unbelievable, as I still remember New Years’ Eve like if it happened yesterday.
Nevertheless, the 1st quarter of 2017 has now wrapped up after a brief, yet welcoming gig and we have much to discuss.
When we finished off 2016, a year that saw the Downtown Miami undergo a shift in power towards buyers, we closed out a period in which the market reflected the same uncertainty and doubt that is now synonymous with 2016 in general. In addition to increased competition among listings (particularly in the luxury market), a strong dollar making it more expensive for foreign investors to make a move, and the unease of a very difficult presidential election, we also had other issues ranging from Zika to the close call with Hurricane Matthew creating other concerns on a more local level.
With all said and done and with the 1st quarter now wrapping up, the question is: Are we better now than when we started? Below are the numbers for Downtown Miami. As usual, please contact me directly for further details on any building in particular.
1st Quarter Report – Downtown Miami
For Sale Vs Sold
Home For Sale in March 2017: 1377 units.
|•||Up 1.3% compared to the last month|
|•||Up 8.7% compared to the last year|
Home Closed in March 2017: 48 units.
|•||Up 17.1% compared to the last month|
|•||Down 20% compared to the last year|
Home Placed under Contract in March 2017: 69 units.
|•||Up 40.8% compared to the last month|
|•||Up 7.8% compared to the last year|
Months Of Inventory
Months of Inventory based on Closed Sales in March 2017: 28.7
|•||Down 13.3% compared to the last month|
|•||Up 36% compared to the last year|
Sell/List Price Ratio
Sold/Original List Price % in March 2017: 85%
|•||Down 1.2% compared to the last month|
|•||Down 4.5% compared to the last year|
I want to be very clear that all graphs aside, my message is very simple: Downtown Miami is still very much in a buyer’s market. The ball still continues to favor buyers and will continue to remain that way for as long as there’s still more than enough supply available to meet the current pool of buyers. Because of the vast abundance of available condos for sale in the luxury and ultra-luxury market market, I believe this is where listings will continue to take longer to sell and where there will be more discounts.
Nevertheless, despite the numbers, one notable change I’ve begun to notice is that prices among active listings have begun adjusting to current market activity, which in turn should help stabilize supply and demand. I believe that for this reason, March ended with 48 closed sales and 69 pending deals, numbers that were considerably higher when compared to previous months.
Sales activity like this can be sustained past the 1st quarter but only if the next cycle of listings continue to pay attention to trends and the pricing is accurate with previous comparable sales.
Downtown Miami real estate is our specialty! Our in-depth knowledge of the market and commitment to superior service have been our key to helping others with their real estate goals. Contact The Miami Observer’s author, Marcelo Steinmander today at 305-305-3885 or send him a message here if you’re looking to buy or sell in the area.