Bidding Wars Becoming Less Common

Now recording its sixth month of decline, homebuyer competition has now fallen to levels seen during the initial throes of the pandemic.

According to Redfin, 44.3% of home offers written by their agents faced competition in July 2022. This seasonally-adjusted number compares to a rate of 50.9% seen in the previous month, and is down from 63.8% on a yearly basis. This number is the second-lowest recorded by Redfin—only April 2020 saw a lower number as lockdowns brought the market to an essential standstill.

The typical home in a bidding war received 3.5 offers in July, compared with 4.1 one month earlier and 5.3 one year earlier, according to data submitted by Redfin agents nationwide. Redfin’s bidding-war data goes back through April 2020.

As a result of cooling competition, properties are staying on the market for longer giving buyers more options to choose from and room to negotiate. This is forcing some sellers to slash their asking prices as Redfin found that roughly 8% of listings have done so every week, the highest share on record.

“The market is wildly different than it was a few months ago. Buyers are competing with one to two other offers instead of four to eight. Some aren’t facing competition at all,” said Alexis Malin, a Redfin real estate agent representing buyers in Jacksonville, Florida.

“There’s not the same sense of urgency. House hunters are scheduling tours four days in advance instead of one, and they’re becoming much more selective. If a home doesn’t check all of their boxes, they’re waiting until they find one that does. Six months ago, buyers were taking any house they could get.”...READ MORE

The Current Miami Springs Market

A GREAT TIME TO SELL!

There are eighteen (18) active listings in the MS/VG market this week. The inventory has slightly fluctuated over the last 3-4 weeks. It had averaged under 15 listings the last several months. I expect continued increases in inventory in the months ahead. Pending sales have slowed a bit. Values are still strong in Miami Springs and Virginia Gardens. Despite interest rate increases, there are still many qualified Buyers out there, BUT as rates increase, there WILL be fewer Buyers! Today, it is still a Sellers' market. Please refer to the articles posted on our website.

Seventeen (17) of the active listings are priced over $500,000. Five (5) properties are listed between 1-2 million dollars. One (1) is listed for OVER 2 million dollars! Six (6) of the active listings have had a price reduction; three (3) this week. We remain in a Sellers' market due to high demand and low inventory, but that has started to change. More interest rate increases are coming in 2022. We anticipate inventory will increase.

MULTIPLE OFFERS HAVE DROPPED AND DEMAND IS SLOWING!

Mortgage interest rates have remained around 5%, but expect more increases. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are becoming less common in today's market. The demand remains high for properties under $500,000. There is one (1) listing just under $500,000. The low inventory and interest hikes make it difficult for most first-time Buyers. One (1) property is priced between $400,000-$500,000. Two (2) properties are priced between $500,000-$600,000; three (3) between $600,000-$700,000; none (0) between $700,000-$800,000; four (4) between $800,000-$900,000; two (2) between $900,000-$1,000,000; five (5) between $1-2 million; and one (1) is listed for over $2 million.

SELLERS, THIS IS YOUR MOMENT!
Low Inventory + Low Interest Rates = Seller's Market.
SELL NOW!

During the period of August 12, 2022 through August 19, 2022, there were reported 3 new listings, 3 closed sales, 1 pending sale, 1 active with contract, 0 expired listings, 0 cancelled listings, 0 temp off market, 3 price reductions, and 0 price increases.

HOW DOES YOUR HOUSE COMPARE?

The table below shows the current status of the Miami Springs/VG real estate market as of Friday, August 19, 2022. All closed sales are within the last 90 days.

*Disclaimer: The data relating to real estate displayed on this website and the chart above comes from the Miami Board of Realtors MLS. All listing information is deemed reliable but not guaranteed and can be independently verified.

 A complete list of all the properties for sale in Miami Springs or any other area of 

Miami-Dade County can be sent to you on regular basis. 

Request it at:  charlie@leonardrealestategroup.com

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