Should I BUY or SELL in Today’s Real Estate Market?
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·5 min read

Today is so crucial to be on top of the market movement and make sure we are taking the right decisions at the right time. We live in an era where everything we knew basically changed overnight and we have to adapt ASAP.

 The questions I get asked a lot are:

  • How is the market doing and how is the future going to look like in real estate?
  • How will people accommodate and live their daily lives from now on?
  • Will commercial real estate fall completely?
  • What is to be expected in 2021?

At the beginning when all the lifestyle changed and the social distancing was implemented we saw a big decline in our sales, a decline in new listings and also in the pending sales. Despite of what is happening, the 2020 1st Quarter market in Miami Dade is still stronger than last year at this time according to the Miami Association of Realtors.

It is interesting how after just couple of weeks, the market started to grow back up. Demand started to move upwards and we show signs of recovery and strength little by little. The median prices on single family homes increased by +9% at $382,750, the highest we ever had in history since 2007 with $380,000. Same in condos, median sales price have seen an increase of +9.5% with $269,000 compared with 2007 with only $272,000.

People are adapting faster than we thought and they get used to be living, working and performing businesses with social distance in place.

In the middle of April the pending sales for real estate market started to surge again. As of May 19, 2020 we saw a big increase in closed sale on condos during the month of March 2020 (with 4,709 sales), better than the month of June 2019 (with only 4,643 sales). This tells us that the market is not as bad as it seems.

We’ve also seen an increase of 6% in the mortgage applications over a week period according to the Mortgage Bankers Association.

The sales of all residential per 1st Quarter of the year increased by +7.7% compared to last year 1st Quarter.

During COVID-19 we have seen strong unemployment rates and I believe it will fall during the months to come. That factor impacts our market, but approximate 70% of Americans, will still be looking and buy housing.

In such cases it was appreciated for us to receive a relief from the government, helping us with the stimulus package and keeping us moving while everything else was shut down.

During the highest unemployment rate we have seen an increase on hiring, in the healthcare industries, at grocery stores and also in telecommunications, which made savings to almost reach double amounts for some employees.

As per Today, even with the highest median price for single-family homes in the past decade or so it is still considered to be too low in our current market conditions, therefore it makes it a strong shortage with an increased DEMAND and a LOW market supply.

The lenders claim low interest rates and that it makes it favorable to buy and make use of what is offered, at your own risk of course.

Miami’s Real Estate Market shifts towards foreign buyers more than before, being the best destination for refugees from the cold weather or for individuals that are directly affected by COVID-19.

Despite of Social distancing in place, the luxury sales increased by 17.1% for Single family homes and 46.8% for condos and townhomes in the month of March.

According to that demand we see a decrease in the invetory in single family homes by 12% and the condos decreased in inventory by 9.5%

For 11 years in a row, Florida is considered #1 in US for foreign buyers with a 20% increase in 2019 followed by California with only 12% and New York with only 3% as per Miami Association of Realtors.

Looking back in the history, Floridians had the strongest and the fastest recovery in the last recession while other states have struggled with it for a longer period of time. 

Yes, we have seen numerous changes and we might still be uncertain of what the future could bring, but according to the statistics, our market will rise and the commercial properties will see a general use again.

It is a matter of time and implementation of new rules and regulations to be followed that will born into a new normal for our society.  

We can’t predict the future, but we can definitely try to make it better, day by day. Investing, buying or selling is at all times at your own risk. Always consult with a professional when you are not the expert, let them help you achieve your goals and not break the bank.

Small businesses and owners sell because they don’t have a choice. Big companies perhaps invest and grow. It is not the end of the real estate market yet and things are shifting around all the times, but the numbers don’t lie.

For single family homes, the months of supply decreased and we have 5.5 months of supply at this time, which inclines towards a seller's market.

The condos and townhomes picture a different situation, I see a decrease in the months of supply, but still not enough to make it a seller's market. At 12.5 months of supply, the condos and townhomes insvestment is considered a strong buyer's market.

A balanced months of supply would be around = 6 to 9 months of supply.If you decide to buy or sell, just know what to buy and what to sell.

According to the statistics I see that selling single family homes, while buying condos might be a choice at this moment in time. This is just an opinion and not an advice.  It is totally up to you to decide on what you can risk or not moving forward.

Always discuss with your advisors on any investment you want to make. Some experts predict that, during this summer the prices on real estate might come down by 1.8% by October.

We are recovering but is predicted to have a slower recovery until spring, 2021 which might be questionable, depending on the market movement.

The current forecast predicts a 1.3% drop in price from April 2020 till April 2021 according to Innman Report, but on the other hand we are not oversupplied as we were before and the supply and demand equation makes the price stay in place. Therefore not always is about timing, when you find your match, don't be waiting and make your move. 



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