In summary, number of sold properties continue to decline back to levels seen at the beginning of the year, and prices barely remain flat if you look back to Jan 2014.

What’s the outlook? Not much until we get passed the holiday season. History dictates low activity during this time of the year, and 2014 shows no exception with 390 properties sold in Nov at an average price of $479,000 throughout southern neighborhoods in Miami-Dade County.

 

Average Single Family Home Price – Below graph details the comparison between the average home price YTD Nov 2010 versus YTD Nov 2014 by city.

 

Days On Market For Single Family Homes – It’s taking approximately 123 days for a property to sell from the moment it enters the market YTD Nov 2014. This figure has virtually remained unchanged throughout 2014.  Surprisingly, homes located in “luxury areas” such as Coral Gables (115 days) or Pinecrest (138 days) have sold at a not so distant pace compared to more affordable locations such as Sweetwater (120 days) or Westchester (120 days).  Typically, luxury homes tend to stay in the market for sale for a longer period of time relative to middle income single family residences.

 

Transaction Type – Single Family – The below graph details the type of sales taking place by city YTD Nov 2014.  Coral Gables, Pinecrest, and Coconut Grove lead the pack with the lowest levels of short sales and foreclosure activity at just under 15% of total sales. This is pretty significant considering each of the other areas command short sales and foreclosure transactions at no less than about 30% of total units sold.  That’s double the amount!

Overall, the single family residence market reflects a flat trend in both price appreciation and number of closings during the last four months (see below graph). These figures are expected to continue for the remainder of 2014 and well into 2015.

Why is this happening? Home values and borrower-income are reaching equilibrium.  In other words, consumers are buying at maximum home price based on their salary or comfort level.  Among other factors, for home values to go up, take-home-pay must increase.  Until then, unless home inventory or interest rates significantly drop, prices should remain flat.

With the exception of July, condos and townhouses are following the same pattern as single family residences (see below graph). This spike is July may be a result of home buyers opting not to purchase single family units, and rather go for the more affordable condo/townhome.

Above and below graphs contain combined pricing and volume data for the following cities: Coconut Grove, Coral Gables, Cutler Bay, Kendall, Palmetto Bay, Pinecrest, South Miami, Sweetwater, The Roads, West Miami and Westchester.

Average Home Price – Single Family – Year-to-date July 2010 vs Year-to-date July 2014 – Below graph details the comparison between the average home price in 2010 versus 2014 by city.

Average Home Price – Condo/Town Home – Year-to-date July 2010 vs Year-to-date July 2014 – Below graph details the comparison between the average home price in 2010 versus 2014 by city.

Days On Market or DOM – Single Family – Year-to-date July 2014 – The below chart shows the number of days a property stays in the market for sale until it is sold.

Days On Market or DOM – Condo/Town Home – Year-to-date July 2014 – The below chart shows the number of days a property stays in the market for sale until it is sold.

Transaction Type – Single Family – Year-to-date July 2014 – The below graph details the type of sales taking place by city.

Transaction Type – Condo/Town Home – Year-to-date July 2014 – The below graph details the type of sales taking place by city.