2020 Housing Market Predictions – COVID-19 Update

Housing started 2020 with substantial momentum as evidenced by hitting some of the best home sales and housing starts pace in more than a decade in the December 2019 to February 2020 period. The inventory of homes for sale hit new lows and was likely to continue to present one of the biggest obstacles to additional home sales pre-COVID. With record high prices, affordability was a driving concern that led many to look to affordable suburbs or secondary markets. COVID-19 has affected both buyer and seller willingness to transact sales in the time that the virus is actively circulating in many communities due …READ MORE

Home price growth will flatten, with a forecasted increase of 1.1 percent
Inventory will remain low, but the rate of decline steadies and the mix of homes for sale shifts toward greater availability of lower-priced homes
Mortgage rates remain low and may slide under 3 percent by the end of the year
Home sales are constrained by low inventory and diminished seller and buyer confidence as the effects of COVID linger in the labor market
Buyers seeking affordability and space drive interest in the suburbs

There are 28 active listings this week. Much lower inventory compared to last year. This is good news for sellers. The bad news is CORONAVIRUS that has slowed things down due to UNCERTAIN ECONOMIC CONDITIONS, precautions taken by Sellers and Buyers and the current social distancing recommendations. However, we are optimistic that things will improve once again by LATE summer. Please read this week’s article.

Thirteen listings are priced over $500,000. One property is listed over $1,000,000. Four active listings have had a price reduction (0 this week). This usually means that the property is overpriced. However, given the COVID-19 situation, some sellers may want to re evaluate their pricing to motivate buyers. We are still in a seller’s market and there are less price reductions as the inventory decreases. Once we get over this virus situation Sellers thinking about selling should act quickly and get their property on the market. Prices remain strong. Mortgage Interest rates remain low.

The demand is high for properties under $400,000. There are only 6 listings under $400,000. This will make it more difficult for buyers looking in that range because of the competition from other buyers. Multiple Offers expected for entry level buyers. Nine (9) are priced between $400-500,000.

Timing is everything. If you're on the fence about selling, now is the time to get off and put your house on the market.

Property price reductions? 

What does this mean? Usually, the property was overpriced from the beginning. 

However, sellers are recognizing the market change.  

There are less price reductions as the inventory decreases.

Sellers that haven’t been able to sell their property in this market should re-evaluate their strategy and adjust accordingly based on the current market circumstances.

During the period of May 8, 2020 through May 15, 2020 there were reported 2 new listings, 4 closed sales, 1 pending sale, 2 active with contract, 0 expired listings, 1 cancelled listing, 0 Temp off market, 0 price reductions and 0 price increases. Interest rates remain low. A GREAT TIME TO BUY OR SELL.

Attention Sellers!

Low Inventory + Low Interest rates = Sellers Market.

Act Now!

The table below shows the current status of the Miami Springs/VG real estate market as of Friday, May 15, 2020. All closed sales are within the last 90 days.

HOW DOES YOUR HOUSE COMPARE?

*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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