Miami Is Still a Seller’s Market

Are you considering selling your home in Miami? If so, you’ll be happy to know that the Miami real estate market is still hot – especially for sellers. Here are some of the reasons why now is a great time to sell your home in Miami.

With rising mortgage rates and recession chatter in the air, there is widespread discussion of a slowdown in the housing market. People just aren't as eager to buy homes these days in the majority of the nation.

But it seems like things are different in Miami.

In Florida's largest city, demand has decreased significantly, but real estate experts claim the market is deteriorating far more slowly than other markets appear to be. In fact, Miami recently experienced the biggest year-over-year price increase in the whole nation, with a 37% increase since July 2021, according to Realtor.com.

Although it's crucial to emphasize that this is happening to a lesser extent than in other markets, the Miami real estate market is showing some symptoms of cooling, according to Claudia Cobreiro, a real estate attorney and the founder of Cobreiro Law and Top Notch Title.

She adds that "there is no evidence of the momentum coming to a screaming end anytime soon," which is more significant.

How is the local buyer's market doing?

Although the Miami housing market has slowed, prices haven't yet decreased. A buyer's market, too? It's unlikely that will happen anytime soon.

Even yet, there are some benefits to purchasing right now as opposed to a few months ago.

One is that there is less rivalry. Redfin claims that in July, 38% of Miami purchasers experienced a bidding war. That is well below the national average and is down from 51% last year. 

According to Joel Freis, a Miami-based HomeLight agent, "there's still a chance for there to be numerous bids on a home, but obviously not as many." "A client's offer was one of 10 in the first quarter of 2022. There are currently three or so.

Buyers now have more options to pick from and, according to agents, more time to make judgments as a result of the increased inventory.

But most significantly, purchasers now have a little more leverage. They might potentially negotiate more without jeopardizing the agreement because they are not required to waive contingencies, which was a regular practice in earlier months.

According to Steve McAleer, a realtor associate with The Agency Miami, "What I have seen in the last few months is a bit more negotiating by sellers in both their asking price and in contract negotiation." "Buyers are competing with fewer bids than before and are a little more able to make acceptable offers," according to the report. "The most desirable houses are still selling swiftly and for strong prices."

How is the seller's market in your area?

In the final analysis, sellers continue to prevail in Miami. Agents assert that they still hold a significant amount of power despite the absence of huge bidding wars or numerous over-asking prices.

Sebastian Vallejo, managing broker at Brown Harris Stevens in Miami Beach, asserts that "Miami is still a seller's market"—one in which there are more purchasers than homes that can be sold.

However, he advises vendors to be moderate.

According to Vallejo, the market is no longer one in which vendors could compel purchasers to waive all contingencies or even make them buy without first seeing the property. "Sellers still hold the cards, but those needing to sell now need to give buyers some breathing room if they want to see the sale go through quickly," the author writes.

Nothing lasts forever, therefore sellers should keep that in mind as well. While prices are anticipated to continue rising in the near future, they will do so more gradually than in the past. Demand might drop to the point where they even change course if rates stay high and the economy enters a recession.

Recent research by Fortune and Moody's Analytics predicts that Miami's housing prices will drop by around 4% in 2023. They might decrease by another 2% in 2024.

The sellers should feel a new sense of urgency, according to Freis. "During the first quarter of 2022, many homeowners were debating whether or not to offer their properties. They had the attitude that they would like to wait it out and see if prices continued to rise, but as interest rates continue to rise, Miami homeowners may want to reconsider their strategy.

So what's the deal in Miami? Why is this market so hot when other markets are faltering? There a few potential explanations. Firstly, South Florida is a desirable place to live, with great weather and plenty of activities to keep people busy. Additionally, many experts believe that foreign investors are still interested in Miami real estate, as it is seen as a stable investment during uncertain times. Whatever the reason may be, if you're thinking of buying or selling property in Miami, now might be the time to do it! Contact me for more information on the best neighborhoods and properties in Miami.

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