Is the Miami Real Estate Market crashing???
The past couple of weeks I have had the same conversation with a lot people… and I wanted to address it and hopefully provide value.
What is going on in the real estate market? Is the market crashing?
I’m here to tell you… The market is not crashing!
There’s no doom and gloom in the Miami Real Estate Market. Yes we can talk recession, inflation, but right now this real estate market is in a correction, going back to a normal market, it’s reverting back to the mean.
The extremely high demand we saw in the previous 18 months was caused by a couple things… mainly historically low interest rates, and a 1-100 year global pandemic that accelerated the demand for housing in the State of Florida like we had never seen before. We were one of a handful of States that remained open during the pandemic while corporations were allowing their employees to work remotely or as the new phrase was coined “work from home”.
This caused many people to move to South Florida, both temporarily as renters, and permanently and buying. Local buyers, were now competing with out of town buyers from other States where the real estate is more expensive and thus were bidding over asking prices both in rentals and sales for properties. It truly was “the Perfect Storm”
Where are we right now???
The past 18 months we saw incredible demand for housing in South Florida which has started to decrease, while at the same time, interest rates are increasing and inventory levels also increasing.
Demand Decreasing is causing, Inventory Levels to Increase.
How did we get here?
Let me point out a series of 4 events that happened in sequential order:
1) 4th Quarter 2021 – Buyer Fatigue – Buyers got out of the market after missing out on various properties, getting outbid, having to clear their schedules to go run see a property.
2) January 2022 – The beginning of the new year companies started to end work from home policy, calling employees back to the office.
3) February 24, 2022 – Invasion of Ukraine by Russia
4) March 16, 2022 – Federal Reserve raises interest rates for the first time in a few years.
These two last events caused global uncertainty and started a massive sell off of the stock market which has wiped out Trillions of Dollars in Net Worth and Company Valuations..
This series of 4 events has lead us to where we are now…
Inventory Levels are increasing in most areas of Miami.
Normal Market = 6 -7 Months of Inventory
Today = 2 – 3 Months
Previous 18 Months = 0 – 1 Months
Both the rental side and buy side. We are still below the 6 months we need to see a normal market and things to level off.
Inventory increasing is good for the market to help it balance itself.
It’s good for Buyers because we can now go see properties on your schedule, take the time to see various properties and then make an informed decision to pick the right property.
Interest rates are higher, yes. But remember whenever they go down which they will you can always refinance.
SELLERS – The days of sky high pricing are gone. You now have to listen to us agents when we recommend a selling price. The great thing is…
If you price your property correctly it will sell very fast.
We are moving back to a more balanced market, it’s a correction, we are reverting back to the mean. Back from the madness and the euphoria. Yes, there will be some bumps along the way but all will be well.
I’m Jose Laya and I was born and raised right here in Miami.
I’ve been in the Real Estate business for 17 years, and I put a lot of work in behind the scenes and do a lot of research to be able to give clients the best advice for them.
If you ever need any advice, any help, you know how to reach me.
Have a great one and we’ll talk soon.
The post Is the Miami Real Estate Market Crashing??? August 2022 – Market Update first appeared on Miami In News.
The post Is the Miami Real Estate Market Crashing??? August 2022 – Market Update first appeared on Miami Dolphins news.