Covid-19 Real Estate News
As expected, the coronavirus pandemic soured sales in Miami’s residential real estate market, according to a report published Wednesday. But the market is regaining steam.
An analysis by Coral Gables-based brokerage firm Berkshire Hathaway HomeServices EWM Realty verified what many Realtors have been saying: that the market for single-family homes and condos slowed at all price points during the first two weeks in April. But the first two weeks in May have brought marked improvement, based on data from the Southeast Florida Regional Multiple Listing Service.
“While not at the levels we’ve seen year-over-year in previous selling seasons, the early May growth is certainly noticeable, especially when compared with the plunging decreases we experienced in April,” said Ron Shuffield, president and chief executive officer of BHHS EWM Realty.
Read more here: https://www.miamiherald.com/news/business/real-estate-news/article242702901.html#storylink=cpy
The data also underscores a shift brought on by the pandemic, which closed many condo amenities.
“We are seeing some patterns evolving,” Shuffield said. “For example, in the minds of some buyers, there seems to be an increase in today’s consideration of a single-family home lifestyle over that of a condominium. The fact that homeowner associations are restricting access to condo buildings for move-in and move-out, as well as the real estate broker’s showing of units for sale, has definitely changed the balance of condo sales versus single-family home sales.”
The analysis showed:
CONDOMINIUMS
▪ For mid-market condos — those priced below $1 million — pending sales dropped by 67% in the first two weeks of April 2020 as compared with the same period in 2019. But new listings jumped by 54% during the first two weeks of May as compared with the first two weeks in April 2020, with pending sales up by 56%. There is 14 months of supply.
▪ Luxury condo units — priced $1 million and above — experienced a 53% decrease in sales from the first two weeks of April 2019 to April 2020. But new listings increased by 38% between early April 2020 and early May 2020, with pending sales down by 46%. The luxury condo market remains oversaturated, with 48 months of supply, above the healthy range of 12- to 18- months of supply, Shuffield said.
“We are clearly seeing significant disruption in the residential real estate market, disruption which we feel will be temporary in the markets that had a well-balanced months-of-supply before this pandemic,” Shuffield said. “However, in markets which had been dealing with excessive months of supply for four years prior to COVID, the growing months of supply will have a downward impact on pricing — particularly within the high-end condo markets.”
SINGLE-FAMILY RESIDENCES
▪ For mid-market single-family homes, houses priced under $1 million, pending sales declined by 45% in the first two weeks of April 2020 as compared with the same period in 2019. New listings increased by 23% from early April 2020 to early May 2020, while pending sales increased by 42%. There is five months of supply.
▪ For luxury houses priced $1 million and above, pending sales dropped 42% in early April 2020 as compared with the same period in 2019. But new listings have rebounded, increasing by 49% from early April of 2020 to early May of 2020. So have pending sales, which grew 33% over the same period. Luxury inventory grew to 32 months in early April but has receded to 26 months in early May, “reflecting good sales momentum,” Shuffield said.
Read more here: https://www.miamiherald.com/news/business/real-estate-news/article242702901.html#storylink=cpy
