As a licensed realtor at age 23 while I simultaneously pursuing a financing degree I learned the importance of numbers and research. Later on in life, I realized real estate is a science of hindsight and began tracking closed market sales to grasp where our market was and where it headed. Boring details for some, exciting numbers for others.
I realized the standard year after year real estate cycle is predictable: February through May and September through November are typically higher sales volume months versus other less active months. Mix in stock market shifts, election years, weather catastrophes, world economics, or a medical pandemic like 2020, and you will most definitely acquire cycle variations.
The chart below tracks sold/closed sales for single-family homes, condominiums, townhomes, and villas in Miami Dade County from July 1 through July 31, from 2006 to 2020 within three different price brackets: $0 to $500,000; $500,001 to $1,000,000; and $1,000,001 to $2,000,000. All data is obtained from the Miami Association of Realtors Multiple Listing Service.
As witnessed in the 2006 mortgage financing bubble, a burst pursued in 2008 which had horrific ripple effects on the residential real estate sector and was felt worldwide. The US’ financial turmoil procured a perfect environment for foreign and domestic investors investing in our rich soil. Since 2010 our local market has been significantly stable with strong sales across the three price tiers.
During this 2020 pandemic, I wanted to share confidence-boosting information on the South Florida real estate market. Overall, the July 2020 residential market witnessed a 3% increase over the same period in 2019. Even though the $500k and under market experienced a 7% decrease in sales, the $500k-$1M bracket jumped 13% in sales and the $1M to $2M bracket increased 4%. The good news is these percentages translate to an increase in property values, buyers qualifying for higher mortgage values due to increased jobs and lower interest rates and possible delays from pending deals due to the Covid-19 pandemic. It’s very important to note the $500k-$1M bracket hit the 400 sales marker never seen before which I attribute to the overall increase in property values. The prediction for August is to continue a stable increase in sales.
The time is now. If you’re thinking of purchasing a new investment property, primary or second home there is no better time than today. Interest rates were this low just 50 years ago in 1971 (were you born yet). If hindsight was 20/20 then we would own more real estate today. I think many of you can agree this pandemic has shown us to appreciate our family, home, yard, neighbors, and surroundings but most importantly our physical and mental health. If you’re thinking of purchasing or selling, always seek the advice of professionals, educate yourself, and make decisions that your future self will thank you for.
As a licensed realtor at age 23 while I simultaneously pursuing a financing degree I learned the importance of numbers and research. Later on in life, I realized real estate is a science of hindsight and began tracking closed market sales to grasp where our market was and where it headed. Boring details for some, exciting numbers for others.
I realized the standard year after year real estate cycle is predictable: February through May and September through November are typically higher sales volume months versus other less active months. Mix in stock market shifts, election years, weather catastrophes, world economics, or a medical pandemic like 2020, and you will most definitely acquire cycle variations.
The chart below tracks sold/closed sales for single-family homes, condominiums, townhomes, and villas in Miami Dade County from July 1 through July 31, from 2006 to 2020 within three different price brackets: $0 to $500,000; $500,001 to $1,000,000; and $1,000,001 to $2,000,000. All data is obtained from the Miami Association of Realtors Multiple Listing Service.
As witnessed in the 2006 mortgage financing bubble, a burst pursued in 2008 which had horrific ripple effects on the residential real estate sector and was felt worldwide. The US’ financial turmoil procured a perfect environment for foreign and domestic investors investing in our rich soil. Since 2010 our local market has been significantly stable with strong sales across the three price tiers.
During this 2020 pandemic, I wanted to share confidence-boosting information on the South Florida real estate market. Overall, the July 2020 residential market witnessed a 3% increase over the same period in 2019. Even though the $500k and under market experienced a 7% decrease in sales, the $500k-$1M bracket jumped 13% in sales and the $1M to $2M bracket increased 4%. The good news is these percentages translate to an increase in property values, buyers qualifying for higher mortgage values due to increased jobs and lower interest rates and possible delays from pending deals due to the Covid-19 pandemic. It’s very important to note the $500k-$1M bracket hit the 400 sales marker never seen before which I attribute to the overall increase in property values. The prediction for August is to continue a stable increase in sales.
The time is now. If you’re thinking of purchasing a new investment property, primary or second home there is no better time than today. Interest rates were this low just 50 years ago in 1971 (were you born yet). If hindsight was 20/20 then we would own more real estate today. I think many of you can agree this pandemic has shown us to appreciate our family, home, yard, neighbors, and surroundings but most importantly our physical and mental health. If you’re thinking of purchasing or selling, always seek the advice of professionals, educate yourself, and make decisions that your future self will thank you for.
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