Single Family Market Report
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CLOSED SALES IN May, 2021
The month saw a total of 14 single family homes sell. Out of the 14 sold, 5 sold for the asking price or better. All the others, experienced listing price reduction.
The Miami Lakes Market Report, is published weekly and monthly, to help buyers and sellers stay informed of our local market conditions, when they are planning on selling or buying a home in our hometown. I hope you find the reports timely & useful. If you have any questions about the sale or purchase of your home, give me a call. You and your family, will be in good hands!
-Jesus M. Fernandez, REALTOR® & Publisher
Single Family Homes Sold Map
HIGH & LOW SOLD
The highest price sale of the month was in the Royal Palm Estates community. It was a two story pool home, built in 1998, with 9 bedrooms and 9.5 baths and 8,346 SF of living space. It sold for $1,810,000 or 18% below the original asking price of $2,198,000 after 124 days on the market.
The lowest sale price of the month was a single story 3 bedroom and 2.5 bath home, with 1,896 SF of living space, located in the Serenity Point community. It sold for $443,000 or 7% below the original listed price of $475,000 after only 2 days on the market.
Properties price competitively or within 3%-5% of their market value, typically sell quickly, as compared to over-priced properties, which may take 6 months or longer to sell.
MISSED THE MARK
Only 1 single family home experienced an expired listing contract, in May. Two sales contracts were cancelled, and 6 were temporarily removed from the market.
FOOD FOR THOUGHT
The three most common reasons why properties remain so long on the market before selling are: The first and perhaps the most consequential, it's the asking price. Properties priced 10% or higher than their actual market value, will remain longer on the market, 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.
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NEW LISTINGS IN APRIL
April saw a total of 30 single family homes enter the market, down from April, which had 46. Out of these 30 single family homes entering the market, 12 returned to market, after failing to sell. Properties that return to market may have experienced a low appraisal value and the seller and buyer could not agree on price, the buyer discovered an issue during the buyer's inspection or the buyer failed to qualify for the loan.
The inventory of available single family homes in March, averaged 36 at any given time. Presently, there are 33 single family properties available, and another 14, which can be purchased with a back-up contract.
The 30 year fixed mortgage rate went up to 3.0% after 4 straight weeks of declines, back down to 2.95% at the of closed May.According to Freddie Mac, we should see interests rate below 4% for the rest of 2021, unless long-term lenders feel forced to raise rates, to hedge against inflation.
MARKET REPORT AND FORECAST
New mortgage applications were down for the forth month in a row. This may have to do more with rising property values than low interest rates. Any further weakening may indicate trouble ahead for sellers, which have been enjoying a strong seller's market.
The supply of available and affordable single-family homes remains a challenge for buyers across the country and those interested in living in Miami Lakes. As of this writing, there are more houses selling for one million dollars or more, than houses for $600K or less.
May saw 30 single family homes enter the market. Out of these, 12 returned to market, after failing to sell.
Are we in a real estate bubble? I think that right now, property sellers and buyers should understand or at least be aware of some market forces currently at play, which may impact property values in the near future. We are still in uncharted waters in many respects, due to the pandemic and the economic shutdown of 2020. It is yet unclear if a bubble will appear or even burst.
What we do know, is that by the end of June, the eviction ban will expire and 11 million Americans are behind on their rent payments. Landlords have taken huge losses, since the pandemic began. Many who have financed or leveraged their properties, may be forced to sell if they can't find qualified renters, to keep them afloat. If this happens, we should see a moderate increase to the number of available single family properties for purchase, in many areas of South Florida, but it's highly unlikely that will happen in Miami Lakes. The town, does not have a huge single family rental market. Presently, there is only one single family home for rent in town. In the last 180 days, 14 have been rented, after only 15 days (on average) after being listed for rent. I don't see trouble waters for most property owners in Miami Lakes, who lease their single family properties. Most have continued to collect rents and are not facing financial pressure, to sell.
What is more concerning is that by the end of June, many forbearance agreements and the postponement of foreclosure proceedings, have given many homeowners enough time to find employment and begin making mortgage payments again. Thankfully, very few Miami Lakers have had difficulty making their mortgage payments, so I do not expect many foreclosures to affect property values in the near future. This however may change by the end of the summer or early fall, when the current forbearance extension ends at the end of June.
There is some good news locally. April saw the second highest volume month of sales, this year, closing the month with 21 sales, just shy of March's high of 22 sales. In at least 10 of the sales, the properties sold for the listed price or above. The rest experienced one or more list price reductions, before going under contract.
Out of 21 sales, 8 properties sold in less than 10 days on the market. Another 4 sold in less than 30 days, while the rest came under contract after 55 days or more.
WHY DO PEOPLE BUY OR SELL?
In my experience, people purchase and sell property for personal reasons, regardless of market conditions. If you are unsure if now is a good time to sell or purchase property, call me. I can help you determine if this is a good time for you. The fact is, sometimes, it's not a good time to sell or purchase property. It really all depends on your personal situation. For honest real-world advise, call me. I'll help you put things into perspective and present you with all your options. I've been helping families like yours, successfully navigate the purchase or sale of real estate, for more than 25 years.
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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.
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