As we enter into the 3rd quarter of 2020, Miami remains a buyers' market and investors need to capitalize on this advantage while it is still there. We will discuss the latest Miami real estate market trends and find out how they can affect the investors and homebuyers in the latter half of 2020. After getting hammered by the pandemic, the Miami and South Florida housing market bounced back in July. Out of five counties, only two of them saw a year-over-year decline in sales.
Sales in Miami-Dade & Broward counties declined by 6% and 0.7% respectively. The other three counties saw a significant year-over-year increase in sales—Palm Beach (+9.35%), Martin (42.6%), and St. Lucie (20.5%). The median sales price in the Greater Miami housing market which comprises of Broward, Miami-Dade, and Palm Beach counties increased by 5.5% to $385,000 while sales dropped by -11.6%.
According to Realtor.com, in July 2020, the Miami area was a balanced real estate market, which means there was a healthy balance of buyers and sellers in the market. Months Supply of Inventory was 4.3 in Miami-Dade County (July). Months of supply is a good indicator of whether a particular real estate market is favoring buyers or sellers. Typically 6.5 months is considered a balanced housing market but due to the ongoing crisis, the demand somehow meets the current supply.
Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The buyers in Miami have managed to hold good leverage in these negotiations in the past month. On average, they could buy homes for 96.95% of the asking price—3.05% below asking price on average in July 2020. A seller would always prefer scenarios that can yield a ratio of 100% or higher. The median list price of homes in Miami, FL was $380K, trending up 4.1% year-over-year.