Miami, FL Metro Area Housing Market Analysis - July 2024
The Miami, FL metro area housing market in July 2024 presents a nuanced picture with various indicators showing both growth and decline. This analysis delves into the key metrics to provide a comprehensive overview of the current state of the market.
Median Sales and List Prices
The median sales price for homes in the Miami metro area stands at $555,000, reflecting a modest year-over-year (YoY) increase of 0.9%. This indicates a slight upward trend in the value of homes being sold. Conversely, the median list price has decreased by 1.7% YoY, now at $570,000. This decline suggests that sellers may be adjusting their expectations to align more closely with market conditions.
Price Per Square Foot
The median price per square foot has risen to $389.03, marking a significant YoY increase of 4.8%. This metric is crucial as it provides a more granular view of property value trends. Similarly, the median list price per square foot has also increased by 3.4% YoY, now at $411.76. These increases indicate a robust demand for space within the Miami metro area.
Sales and Inventory
The number of homes sold in July 2024 is 2,265, showing a slight YoY increase of 0.2%. Pending sales, however, have decreased by 3.2% YoY, totaling 2,541. This decline in pending sales could be an early indicator of a potential slowdown in future transactions. On the other hand, new listings have surged by 15.3% YoY, reaching 3,537. This influx of new listings contributes to the overall inventory, which has seen a substantial YoY increase of 36.2%, now at 13,801 homes.
Market Supply and Days on Market
The months of supply, a critical indicator of market balance, has dramatically increased by 160.0% YoY, now standing at 6.10 months. This significant rise suggests a shift towards a buyer's market, where the supply of homes exceeds demand. Additionally, the median days on market have increased by 13.0% YoY, now at 67 days. This longer duration indicates that homes are taking more time to sell compared to the previous year.
Sale to List Ratios and Price Adjustments
The average sale to list ratio is currently 96.1%, reflecting a slight YoY decrease of 0.7%. This ratio indicates that homes are selling for slightly less than their listed prices. The percentage of homes sold above list price has also decreased by 7.6% YoY, now at 11.5%. This decline suggests that competitive bidding may be less intense than in previous years. Additionally, the percentage of price drops has increased by 7.0% YoY, now at 20.5%, indicating that sellers are more frequently reducing their asking prices to attract buyers.
Off-Market Trends
The percentage of homes going off-market within two weeks has decreased by 9.3% YoY, now at 22.2%. This decline suggests that homes are not selling as quickly as they did in the previous year, further supporting the trend of a cooling market.
Conclusion
In summary, the Miami, FL metro area housing market in July 2024 exhibits a mix of growth and cooling trends. While the median sales price and price per square foot have seen increases, the decline in pending sales, longer days on market, and higher inventory levels indicate a shift towards a more balanced or even buyer-favored market. Sellers may need to adjust their strategies to align with these evolving conditions, while buyers could find more opportunities as the market cools.
