2019 YEAR END REVIEW
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December saw only 14 single family homes sell. The less than impressive sales volume has not bucked the slow sales trend, we've seen all year, in Miami Lakes. Perhaps the volume of listing price reductions in November (30) and October (30)were not enough to stimulate more sales. Many properties still remain over-priced, in this tight market. Miami Lakes, has lagged behind all year in sales volume, when compared to other high-worth areas of Miami-Dade. The end of the year has been historically slow for sales, and the end of 2019 has been typical. Mid January of 2020 should be a great time to list a property for sale. If it is competitively priced, it should sell quickly in this low inventory market, we have in miami Lakes.
HIGH & LOW SOLD
The highest price sale of the month was in Royal Oaks, 8th addition. This beautiful two story pool home with 4 bedrooms and 3 baths sold for $780,000 after 71 days on the market. It sold for $79,000 or 8.2% below the original listed price of $850,000.
The lowest priced sale was at West Lake Gardens. It was a 4 bedroom 3 bath two story home, with 1,990 SF of adjusted living space. It sold for $408,000 after 113 days on the market, from the original listed price of $469,000 or 13% below the original asking price and only after three price reductions.
MISSED THE MARK
The month saw 3 properties failing to sell within the contract period, down from the previous month that saw 4. An additional 6 properties experienced a cancelled contract, 11 were temporarily removed from the market and 6 were withdrawn altogether. In a market with less than 100 single family homes available for purchase, this many properties leaving the market is not a good for buyers, who have a limited inventory to choose from.
There are basically 3 reasons why properties remain so long on the market before selling. The first and perhaps the most consequential, it's the asking price. Properties priced 10% or higher than their actual market value, will linger on the market longer, while competitively priced homes, sell quickly and get top dollar. The second, is the condition of the property as it relates to the price and the competition. And thirdly, availability or the ability of buyers to view a home, when they are available to view them.
December saw 22 new single family homes enter the market. Slightly lower than last month that saw 24 and much lower than last November, that saw 35. Still the number of new listings entering the market are not enough to off-set the number of properties sold or removed from the market.
The highest priced new listing in December, came in at $975,000 for a 3,404 square foot 4 bedroom 3 bath pool home, in Royal Point section. The design of this house is remarkable. The pool and patio areas are great for entertaining and every day living. You have to see to believe! To view, click the following link, SHOW ME.
The lowest priced new listing in December, came in at $430,000 for a two story 3 bedroom 2.5 bath home, located in the new Satori subdivision. The home was built in 2017 and it's practically new. To view, click the following link, SHOW ME.
The inventory of available single family homes in December was low, with only to 78 active listings available in the last week of the year. Out of all available listings, 13 experienced or 17% experienced a price reduction in December. The year long trend of at least 10% of all available properties experiencing a price reduction, indicates that sellers have been too over confident in the Miami Lakes market. Sellers and have had to reduce their prices to remain competitive and sell easy too often. In November alone, 35 properties or 37% saw a price reduction, when the month's property high listing count was only 95.
The average days on market has increased, since June. The average number of days to sell was steadily remained around 70 days to sell. Presently, out of the 78 active listings, 47 have been on the market for 100 days or more and 21 of them, for 200 days or more.
IN THE NEWS
The prolonged trade war with China has not affected long term interest rates, which have hovered on average at 3.7% over the last three months of the year. When compared to this time last year interest rates were one point higher, or roughly 4.81%. The housing market continues to improve in the U.S., with higher demand and increased construction due to a stronger jobs market, with real estate accounting for 1/6th of the entire U.S. economy. The Federal Reserve did not lower the benchmark rate in December, as some analyst predicted.
December, saw slightly higher consumer confidence numbers, than November. With historically low unemployment across all demographics and rising wages, most economist predict that property values will continue to moderately increase, in most areas of the country, into 2020.
Locally, the housing market has improved nicely, since February 2019, which saw a slow down. Currently the average selling price for a single family home in Miami-Dade is $315,000. Down from one year ago, at $325,000.
Miami Lakes sales of single family homes have remained mostly flat, in the last three months. November saw only 14 sales, October had 16 and September 14. December's performance, seems to be consistent with the previous three months.
The amount of price reductions over the last month (13) is a good indicator that sellers are over pricing their properties. In a market with less than100 single family homes for sale, 13 price reductions is rather high in any month. The average amount of properties experiencing a price reduction over the last three months came in at 24.6%. The average price reduction at the last listed price was 4.1% for home selling in the month.
The good news is that for the third month in a row, interest rates on 30 year home loans are still below 4%. The last Friday of the month, saw the average rate rise to 3.72%, (the highest rate, since July) from the high of 3.66% in November. On average, the 15 year conventional loan rate rose slightly, rising to 3.4% The Federal Reserve, has stated they do not anticipate another rate cut in the foreseeable future or the first quarter of 2020.
In September, many in the media were forecasting a recession becoming a reality in the 4th quarter or early next year. It never materialized an after the approval of the Mexico/Canada trade agreement with the United States, most economist are forecasting that no recession should hit the U.S. during the first half of 2020. The recession talk may have been more political talking points, rather than based on the overall health of the economy. The job numbers look good, still holding steady at 3.5% unemployment nationally and 3.1% locally. The expansion of the economy was anemic in November, with only 2.1% growth and December was not much better at 1.8%.
Locally, any recession effects, if any, will have little impact on real estate prices in the short term. If a recession does eventually materialize in 2020, because unresolved trade issues with China or war in the Middle East, it's effect to the local real estate market won't be felt for months.
The average property value increase in Miami Lakes, continue to be a bit flat, averaging only about 2.49% annually, compared to other areas of Miami-Dade, which saw medium home values rise on average 5.9%, down from the previous estimate of 11.4%. If current economic trends continue for the rest of the year, we should see about the same amount of value increase over the next 12 months.
If you are thinking of selling and financing any part of your new purchase, the next two months may be the best time to list your home and purchase a new one. Inventory remains low, and listing prices remain a bit high. So if you price your property competitively to market, it should sell in 70 days or less, and give you an opportunity to borrow any part of your new purchase, at really attractive rates.
To learn about the market value of your home, click HOME VALUE REPORT.
Single Family Homes sold in December
Year to Date Sales
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FOOD FOR THOUGHT...
Over-pricing is the number one reason a property fails to sell in the United States. Buyers everywhere look for value when they compare properties for sale in the marketplace. If a property is overpriced, it will look inferior to similarly priced properties in the area, effectively removing the property from consideration, from that “price-range” buyer. Worse even, it prices-out potential buyers, who would have considered it, but never saw it, because it was priced out of their price range. Pricing a property correctly to market, while accounting for condition, actually yields more for the seller in the long run. Contact us! We will help you establish a selling price that helps you sell quickly and for top price.