COVID-19’s impact on Miami Real Estate: most likely not what you think
Lockdowns, layoffs, saturated hospitals, deaths, and business closures. While 2020 can be briefed in a few negative words, a look at the numbers and buyer’s behavior in Miami-Dade’s real estate shows some -for some- unexpected results, particularly from the residential market.
With interest rates at a record-low and people looking to move out of their condos, it has driven up prices and demand for single-family homes.
According to the MiamiReport Q3, only 0.67% of all single-family homes in Miami-Dade County — or 4,516 out of 678,860 — are currently listed for sale or rent on the Miami Multiple Listing Service.
It also shows the percentages of foreign buyers versus domestic U.S. buyers have flipped since 2010, from 49% foreign and 21% domestic to the current 23% foreign to 49% domestic. Recurring to tax data, the research also indicates that Florida is the No. 1 choice for people relocating from New York, New Jersey, Illinois and Massachusetts.
“Houses are selling at such a feverish pace, inventory is getting unbelievably tight and prices are going up,” Craig Studnicky, president of RelatedISG said. “Now buyers are saying ‘Show me some condos’ because houses are a seller’s market now. Buyers are not going to find a bargain anymore. If they want a bargain, that’s condos now.”
Here are some of the top-gaining neighborhoods:
▪ In Miami Shores (median home value: $569,608), the number of closed sales jumped 42.6% between June 1-Aug. 31 over the same period last year. The total dollar volume in sales grew 29%, from $46 million to $51 million.
▪ Palmetto Bay (median home value: $310,471) showed an increase of 6.3% in closed sales and a jump of 14% in the total dollar volume of sales, from $65.1 million to $74.2 million.
▪ Key Biscayne (median home value: $1,079,895) saw a 43% increase in total dollar volume sales, from $101 million to $144 million.