Thoughts And Expectations For This Summer

summer

I find it hard to believe that it’s already been six months since this year started. Days, weeks, and months have gone by without hesitation and once again, the summer months are now here. As school ends, work slows down, and temperatures reaching as high as 98’F last week, writing this post felt appropriate.

Below you will find a list of some of the various trends I will be looking into over the next summer. Some of the trends, if not most, is based on the data I’ve collected since the year started. Other points, meanwhile, are less data-centric and are mostly based upon the dozens of conversations I have on a weekly basis with buyers, sellers, and other fellow agents. Ultimately, the goal of gathering information between two very different sources is to obtain a balanced perspective of the markets I work in.

For additional details and information or for further review, please reach out to me directly at 305-305-3885 and/or at steinmander.m@ewm.com

Thoughts & Expectations: Summer 2017

#1 | Buyers Will Continue To Dictate Market Demand Across Most Price Points

2017, from a personal standpoint, has begun with the market displaying very positive data and increased activity in most price points. The end of the Presidential Election and the recent job reports have been seen as main reasons for these results. Nevertheless, I humbly believe that the reasons above only served as fuel to the fire and that the main drive to these numbers are the adjustments that began taking place late last year, with more sellers beginning to price their properties according to current levels of supply and demand.

One perfect example to this observation is the Brickell market, which has seen a 17.1% increase compared to the end of the first quarter of 2016. I also saw a substantial decrease in the months of inventory from 41.4 months in January to 24.9 months in April. Source: Trendgraphix.

As I mentioned on my Brickell report a few days ago, these numbers still reflect a market that is still driven largely buyers looking for the best possible deal.

Brickell (zip 33129 33130 33131)


Condo/Coop/Villa/Twnhse
Curnt vs. Prev Month: Months of Inventory (Closed Sales) 3.6%
Curnt vs. Same Month 1 Yr Ago: Months of Inventory (Closed Sales) 13.1%

#2 | Summer May Cool Down The Market As Temperatures Heat Up

This observation is based largely on historical statistics and just an overall perspective on our local cycles. Unlike other markets, which see a spike in sales during the summer due to the end of the school year, numbers usually spike during the spring, and winter months of the year. 

With that said, there’s always exceptions to everything.

Summer last year was a very busy one for me and I’m expecting a similar narrative this summer. Based on my experiences with some of my listings lately, there are buyers sitting on the sidelines who wouldn’t have a problem with making a move immediately. One perfect example: My listing in Quantum, which had multiple offers and went pending less than two weeks in.

I hope this encourages anyone that needs to sell right away. Giving it a go over the next few months could be worth the try.

#3 | Buying When There’s Lower Interest Rates Still A Simple Way To Save

This one speaks for itself. When interest rates seemed to be on the rise by the end of last year, I saw a huge rise in mortgage pre-approvals. As of the day I’m writing this (June 2nd, 2017), the average rate I saw online hovered around 4%, which is lower than back in December.

Ultimately, the rate will depend on the type of loan and on the person’s credit. Nevertheless, the chance of saving a substantial amount of money by timing your loan to a good rate is never a bad plan. I recommend keeping this in mind throughout the summer during any house hunting activities.

This applies whether i’m helping you buy a place down here or if you’re buying a place somewhere else in the U.S with another agent.

Remember to shop around 😉

In Conclusion

My expectations for this summer are much more optimistic compared to last year’s outlook. The key for sustainability in the rise of sales will still depend on whether the right price adjustments continue.

With the right pricing and some amazing marketing, my staff and I have been able to have had great success stories this year. My hope is to see more of it as we continue to work with other sellers in our areas and also see more of the same in other areas.

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. 

 

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