How is the real estate market in the Miami area? Properties are still being bought and sold for sure but what does the future hold? We are going to try and answer that today or, at the very least, shed some light on the topic.
 
I will be the first to say that I cannot predict the future. However, by looking at the data, we can most certainly see where the market may be tending, at least by property type, and what kind of inventory may be headed our way shortly.
 
So what does the market look like today?
 
Active Listings:
We have 15,433 total single family properties and 20,770 total condo/townhome properties available for sale on the MLS in Broward County. This does not include all of the new construction available in the Miami area as not all builders put every piece of their inventory for sale.
 
REO Listings:
There are 1,196 active single family REOs available, which represents 12.9% of the market and 1,220 condo/townhomes available, which represents 17.02% of the market. This number is up slightly from what was available just a few days ago.
 
Short Sale Listings:
There are 4,814 single family properties, which represents approximately 3.21% of the market and 5,774 condo/townhomes, which represents approximately 3.60% of the market, listed as short sale properties. These are properties that have been identified by the owners or the agents as owing more than what the current property is worth to the bank. Some owners may make up the difference themselves but the most likely scenario is they will need approval from the bank prior to completing a sale. They are looking for the bank to take the loss.
 
So what does all of this mean? That is the real question we are trying to answer and the reason we bring up short sales is that when they fail they end up coming back onto the market as REO properties. Currently REO properties make up approximately 50% of the closed sales in the market.  Short sale properties make up approximately 30% of the closed sales in the market.  
 
Last year we saw very low approval rates by banks on short sales.  Approvals were in the 25% range. This year we have seen the number increase dramatically to about 50% and increasing.

If the short sales don't get approved we could see an REO market that is approximately 80% of the Miami Market.

The number one question we get after providing this information is: "Does that mean I should wait to buy or sell?" The answer to that question is: "It depends". Every situation is unique and rates have been moving up which means even if prices fall you would be paying more on a monthly basis for the same home.
 
Also keep in mind that many bank owned properties receive multiple offers and finish 10s of thousands above their actual starting price.
 
Keep tabs on the market and your possible next home by looking at our FREE MLS.
 
 
Ellen Bithell, CREO, CRS, SSS (Short Sale Specialist)