How’s the Market?
When you meet a Realtor for the first time, the most natural question to ask is, “How’s the market?” Most people have an IDEA of the market, shaped by headlines, news reports, interest rate discussions, and conversations with friends. If the Realtor simply echoes what you already know without asking you specifically what you might be interested in, have you learned anything? As Realtors, it is a question we should not only be prepared to answer but it is a question we should welcome. The truth is that active markets like South Florida are blessed with many micro markets. And if someone is comparing downtown Brickell with Kendall, well that isn’t a fair comparison. Two different markets going through two very different types of moments.
If you ask me, I’ll respond with, “Well, it really depends on where you’re looking and what type of home you’re interested in,” followed by some specific questions.
Note for esample, in South Dade, The Village of Palmetto Bay (zip code 33157) has 147 Active listings at a Median price of $1,150,000 that have been on the market approximately 45 days. In the last 90 days, there have been 136 sales with a Median price of $765,000 and they were on the market a median of 20 days. This translates to 3.24 months of inventory, indicating a SELLERS market. The longer days on the market of the Active listings suggest a slowdown, possibly due to the summer season or higher prices – factors that would require further investigation.
Nearby, the Town of Cutler Bay – zip code 33189 – has 42 Active listings with a median price of $650,000 and 38 days on market. Over the last three months, 47 homes were sold at a median price of $610,000 and 21 days on market. This results in 2.68 months of inventory and like Palmetto Bay, Cutler Bay is also a SELLERS market, with a similar trend of slight slowdown.
But let’s look at a market like Miami Beach, zip code 33140, the numbers read like this: 92 Active/Median $4,225,000/ 89 Days on Market & 33 closed/Median $3,159,000/ 75 Days on Market. This equates to 8.36 months of inventory, which is a BUYERS market. Different area, different market dynamic. But even neighborhoods within an area will perform differently from one another.
This level of detail may not be realistic in a spontaneous conversation. However, a prepared Realtor should be able give you a sense that they understand the complexities of our market, asking the right questions to provide you with the information that truly matters to you. Let me know if I can help you or a friend answer any questions they may have about the market.