How’s the market in Dade County?

How's the market in Dade County?

First principle: Supply and demand is like a seesaw.

“Sellers Win” Market

SellersWin_Green

Low inventory creates upward pressure on values. The SELLER has the advantage.

“Neutral” or Balanced Market

BalancedMarket

If inventory and demand are balanced, values are normally stable. Neither buyers nor sellers have an advantage.

“Buyers Win” Market

BuyersWin_Red

High inventory creates downward pressure on values. The BUYER has the advantage.

A Tale of Two Markets

For houses, in the starter and move up price ranges, there are significantly more buyers wanting to buy than there are homes for sale. This has resulted in a seller’s market. For premium or luxury houses, the opposite is true. There are many more properties for sale than buyers interested in buying. So luxury homes are in a buyer’s market.

Only lower priced condos are still in a seller’s market.  The majority are dealing with buyer’s market conditions. The condo market has more variables to consider. Oceanfront locations, 55+ complexes, assessments, reserves and the health of the association, etc. These factors sometimes create unique markets by themselves distinct from what other sellers are experiencing in the same price range.

While much of the country is experiencing a similar problem with two distinct markets, it does seem to be more pronounced in our area. Our local market has been stuck in this “two market” situation since the summer of 2016. The two graphs below should make the overall principle, especially related to pricing, much easier to understand.

For more exact guidance, please contact Orli Rudolph directly at (305) 778-7109 or Matthew Jerry at (954) 290-4447.

Seller's Market

Seller's Market
This is the type of market most Sellers in south Florida are accustomed to. Most of the homes for sale are priced IN the market. Prices for similar properties are in a smaller range. Only those that are severely overpriced are priced OUT of the market.

Buyer's Market

Buyer's Market
In this type of market, most of the properties for sale are actually priced OUT of the market, and have no real chance of selling. In order to be priced IN the market, sellers in a buyer's market must price much more competitively and aggressively than their neighbors. Only the very best deals will sell.

Single Family Homes

The columns show the average days on markets for the homes that sold that month. The green line shows the percentage of the listing price that the seller sold for, on average.

Condos, Co-ops, Villas and Townhomes

The columns show the average days on markets for the homes that sold that month. The green line shows the percentage of the listing price that the seller sold for, on average.

Last 15 years, all property types, all price ranges

This graph show the properties that were available for sale and the number that sold during the last 15 years.

Average Sale price (in red) for the last 15 years

This graph shows the average asking price and the average sale price during the last 15 years. It should be noted that the large gap between the two is due to the large number of unsold properties in higher price ranges. It has nothing to do with what a normal seller gets as a percentage of their asking price.

Houses only, the average sale price is indicated by the red line

It should be noted that the difference in the average asking price and the average sales price is due to the large number of unsold properties in the higher price ranges. The amount the average seller gets of their sales price is posted in another chart located here.

Condo’s, Co-ops, Townhomes, the average sale price in indicated by the red line

t should be noted that the difference in the average asking price and the average sales price is due to the large number of unsold properties in the higher price ranges. The amount the average seller gets of their sales price is posted in another chart located here.

SINGLE-FAMILY HOUSES

Houses 0 to $299,999

Houses $300,000 to $499,999

Houses $500,000 to $699,999

Houses $700,000 to $999,999

Houses $1 million to $2 million

CONDOS

Condos 0 to $249,000

Condos $250,000 to $349,000

Condos $350,000 to $499,000

Condos $500,000 to $749,000

Condos $750,000 to $999,000

Condos $1 million to $2 million

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