As a vast landscape of numbers and figures, the Miami market isn’t always simple to comprehend. With that said, it does happen to follow a set of cycles, just like most global real estate markets worldwide. With a keen eye to details and a set of rules to follow, it can be read like any book.
Since earlier this year, I’ve reported an overall drop in sales among some sectors of the market. Some sources affirm that this decrease in sales is due to a stronger U.S ($) dollar, reduced demand from foreign buyers among other reasons. Although I certainly agree to both sources, the feeling in the front lines isn’t the same.
Over the last few weeks, my office continues to buzz with the sounds of new clients, my phone has continued to ring, and my laptop is still churning out new e-mails. I’ve spoken with many clients, each one with its own unique story and ideas on what to do in the city. Some need financing, some have the cash ready. A few are looking to invest, while others look forward to moving here permanently. Most of all, some come from remote places across the world and some grew up in the same neighborhood I grew up in and go to the places I go to on my down time.
They’re here and they all share the same objective: To become a part of this city by owning a slice of it.
So if there’s so many buyers out there, why is the market slow?
Based on the feedback I’ve received, most of the buyers I’ve spoken to want to make a move but aren’t satisfied with the prices on some of the units. I don’t want to point fingers in this situation, but as I mentioned on an earlier post this month, they do have a point. I can’t help but admit that there’s a lot of inventory out there that’s not priced where it should be. Anyone with a little bit of knowledge of the industry knows about what I’m referring to: certain units priced at extravagantly higher prices than similar units for no obvious reason.
A brief look at the Brickell and Downtown Miami market sheets below should provide glimpse to what I’m referring to. It doesn’t take much to realize that there’s a pretty wide gap between both sides.
|Brickell (zip 33129 33130 33131)|
Real estate markets aren’t a constant, undeviating set of figures. As a whole, the data represents trends that continue to evolve over periods of time. In my humble opinion, my belief stands that Summer can be just as good of a time to do business in Downtown and Brickell. Most unfortunately, these past few weeks have been somewhat frustrating due to the amount of good units that could have easily been sold had they been priced accurately.
In Conclusion: Is the Miami Market Slow?
Long story short the answer is yes, the Miami market is slow, but not for the most widely discussed reasons. At the end of the day, properties, no matter where they are, sell as a result of effective marketing and adequate pricing. Most of the discussion I’ve seen lately point out the less obvious reasons. I firmly believe that the market is slower today not because of a lack of demand but because of a lack of well priced inventory.
There’s a reason why this is called a “correction”. Start correcting.
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