Being such a desirable place to live, demand for property in Miami has always been strong and right now that demand is outstripping supply. It’s definitely a seller’s market in Miami with trends showing a decrease in days on market, and an increase in listing price, making this a great time to list your home for sale.
Less Homes Listed Compared to Last Year
As it stands today, Miami has a total inventory of 5,353 homes listed for sale, which is just a slight increase over last month’s figure of 5,345, showing just a marginal 0.15% gain. However, compared to a year ago total inventory is actually down, but with only a 4% decrease in the number of homes listed for sale, this isn’t exactly big news.
The bigger news comes when we look at median days on market. Miami has seen a 23% drop in this figure from this time last year when the median DOM was 94. Today that figure is 72 but if we look at last month’s figure perhaps the downward trend has ended – this month the DOM is up 3% from last month’s median of 70 days. So homes are selling faster right now than they did at this time last year, which could be a result of the slightly lower inventory. If there are fewer homes on the market but a similar level of demand, homes will usually sell faster.
Homes Are Listed For More
A look at the median list price also appears to support this theory. Just one month ago the median list price was $270,000 but now it’s risen by 4% to $280,000. And compared to last year the rise is even more marked – the median list price has rocketed by 17% from $240,000. We can get a more accurate comparison if we look at the median price per square foot as this really compares like for like. The news is big here too – from last year the median price per square foot in Miami has risen by 14% from $148/sqft to $169/sqft, and this is even a 3% rise from just last month when the figure was $164.
This is firm proof of a seller’s market in Miami right now – less inventory and higher prices per square foot mean that demand is outstripping supply. It’s a good time for sellers to list their homes as there should be more buyers and the potential for multiple offers. For home buyers this isn’t such good news; prices are being pushed up so you won’t be able to buy as much house right now as you could for your money this time last year.
Mortgage Rates Dropping
The good news for buyers is that mortgage rates in Florida have dropped, so although homes are being listed for more the slightly lower mortgage rates should allow you to get additional financing anyway, thereby covering – to a certain extent – the rise in house prices. Florida mortgage rates today dropped to a low of 3.26%, down 19 basis points from 3.45% this time last month. They have also dropped by nearly half a percent from April last year when the average was around 3.71%. All of this news points to a fairly buoyant property market in Miami as lower mortgage rates are helping to cover the increasing property prices.
