I was speaking with a friend yesterday and she was surprised to find out that I have home buyers in Miami who can't find homes. Well, let's rephrase that. The can find homes, They just can't get them under contract.
I realized that she was not the first person I've talked to lately who was surprised at this.
"But I thought it was a buyer's market right now?" they always ask me.
Yeah, according to who? The news that prices are low, foreclosures are high, short sales abound, is always out there. But it is only in the very recent weeks, that I have seen the media getting the truth about finding a home out there: home buyers are having a tough time of it right now in Miami.
Yes, there are lots and lots of listings. Over 8,300 single family homes in Miami-Dade county are listed for sale right now.
But then you remove the overpriced listings because, well, because they're overpriced. Momma didn't raise no fool, now did she? ::wink::
And you don't really remove the foreclosed listings, but you almost should. The ones that are priced right are getting multiple offers. Sometimes fifty or more. I've been on both sides of the deal with these, as listing agent and buyer's agent. So I know first hand that listing agents are not making this up. With mulptiple offers on the table, chances are stacked against you getting your offer accepted.
And then there's the short sales. Yeah, those. I don't shy away from them. But I do make sure I ask lots of questions of the listing agent when selecting whether to show them or not. If the listing agent hasn't got a clue, we pass. The process is already long enough, add someone who doesn't know how to do it right, and it's slow as molasses AND perhaps dead before it starts. When my buyer makes an offer on a short sale, I advise and counsel that we are in it for the long haul. So we MUST make sure that there's a decent chance it will get to closing.
Remove the above and what does that leave? Well, it leaves the regular sales. Remember those? Ahhhh. Those days were good, were they not? There was a seller, there was a buyer, and there was a deal. I long for them again. But let me snap out of my daydreaming! There are some well priced regular sales to be found. And they sell quickly when you find them. So make sure you act fast.
Add to all that the buyers scrambling to make the April 30th deadline for the $8,000 home buyers credit and you have a very brisk Miami real estate market.
The tides have changed. If you're out looking at homes in Miami, make sure you have the benefit of working with a professional by your side. Contact your local Realtor today.
Maggie Dokic, SFR is a licensed real estate broker in the state of Florida selling residential real estate in Miami, Palmetto Bay, Pinecrest, Coral Gables, Gables by the Sea, High Pines, the Redland and other select areas of SW Miami-Dade County.
Maggie has earned her SFR certification to be able to better serve the needs of her customers in today's non-traditional real estate market. SFR is a Short Sale, Foreclosure Resource Specialist. Designees have been trained to understand the highly specialized options available to Sellers facing short sales & foreclosures and Buyers looking to buy them.
For more information on our local real estate market, or to see or sell a home in Miami, Palmetto Bay, Pinecrest, Coral Gables or the Redland, visit my Miami Real Estate blog or contact me at Maggie (at) TheBlogThatAteMiami (dot) com.
The opinions expressed herein, are those of the author, and not necessarily of Keller Williams Realty.
None of this information is to be deemed legal or financial advice. Please contact your attorney or accountant for same.
Maggie
Your thoughts are right on target.
Good luck and success.
Lou Ludwig
My investors purchase homes from the court house steps and put them back on the market priced right. Yes, we do receive multiple offers on the properties. There are a shortage of homes available. I agree with you
I'm in the upper SC area so it's interesting to hear how intense your market it is Miami ... "The ones that are priced right are getting multiple offers. Sometimes fifty or more." Best wishes Maggie on your next sale and love the ::wink:: !
When you are looking for a specific home, in a specific school district at a specific home, it is truly not that easy. So we have home buyers waiting. I long for those days too.
Lou, thanks. Wishing you the same, a hundredfold!
Harry, I know a few investors with cash in our area that are doing the exact same thing after taking care of needed repairs. They are helping move homes that would otherwise be un-financeable and turning a tidy profit. A win-win for all.
Jennifer, how's your market been? Ours has been this way for at least a year now. Although we are at a fevered pitch due to the looming deadline of the $8K credit.
Missy, agreed! So when sellers in those markets decide to sell, they should take heart in the knowledge that with a good agent, and a proper pricing & marketing strategy, their home will sell and sell quickly.
MAggie - same here, at least in the under $500K range, and it gets worse under $300K. A number of towns have less than 5 months of inventory right now which makes it even tougher with the current demand. A complex market that cannot easily classified.
Jeff
Maggie,
Very interesting post. The Lancaster, PA area is probably one of the most stable markets. We rose like everyone else, but not at the rate most places did. Plus the conservative nature of this community keeps people as a whole from overspending. We do have our fair share of foreclosures and short sales, but we are not inundated with them. We are getting some multiple offers, but not as many as 50. Top dollar goes to properties which are in mint conditions. This is what the average buyer is looking for in today's market. Best of luck.
Cal
Hi Maggie, good post---how true it is---we are seeing mutiple offers on some homes, not quite 50. Thanks for the posts!
Jeff, yes, we see the same trend here. The lowest priced homes are the hottest (under $200K) but a 1.5 acre 3,300 SF estate in the Redland that was listed at $325K sold for $400K. It was a foreclosure and needed work.
Cal, I am seeing many, many foreclosed homes selling for more than asking price. See example cited to Jeff above.
Essie, yes, it's difficult to compete when there's 49 other offers on the table. Indubitably half or so are for less than asking price (from those that still don't get it) and the other half are for more and many of them are cash offers.
Love it Mags!! Yea we do have the same market. Take out the short sales, cr*p and overpriced listings and we have NOTHING!
Renee, you have such a way with words. I love it. he he he You're spot on!
"... home buyers are having a tough time of it right now in Miami" -- and you could almost write this exact post for Las Vegas as well. In a way, it's nice to know there's another market that understands what we're going through!
John, most definitely! I read the commentary on you and Renee's blogs and they are very similar to ours.