Sometimes, numbers and pictures speak louder than words. So I want to share the "picture" that I got today from the MLS.
The following is a TWO-DAY snapshot of the activities that took place in the real estate market for our Area 20. This includes the Town of Miami Lakes and other adjacent areas such as Hialeah, Palm Springs North and Country Club of Miami.
This data is for all residential properties, single-family homes as well as condos.
Total homes for sale in Area 20 as of today: 2,297
New listings: 44
Pending: 11
Back on the Market (previously under contract that didn’t close): 11
List Price revision: 86
So how do we interpret these numbers?
These numbers tells us that just in the last two days, 44 new homes were added to the market. We also find out that 11 properties went pending (under contract). However, since 44 homes were added to the market and only 11 went under contract. This means that we are adding more properties to the already huge inventory of homes for sale. So there is more coming in than what is going out. Or put in other words, we have a much higher offer than demand, and Economics 101 tell us that's good for the buyer, but not for the seller. That's why we call this a buyer's market. Also, it tells us that the pressure is on the seller to lower asking prices. And there's more of this below.
Another thing we find out is that 11 properties that were under contract (pending) didn’t close. That's what Back on the Market means. This could be the result of many different problems. But one issue that is becoming more common lately is that buyers who were initially pre-approved with a lower down payment are suddenly required to come up with a higher amount and they simply can’t afford it. Mortgage Lenders keep changing the rules on a daily basis and it is making the trip to the closing table more difficult for many people.
In these two days there were 86 price revisions. These days, a price revision usually means price reduction. These numbers are telling us that for each new home that entered the market there were almost two that reduced their listing price. The pace of price reductions seems to be accelerating. No one knows when we will hit bottom, but prices are definitely going on a downward direction, at least for now.
For other interesting numbers specific to the Town of Miami Lakes see my current Market Report by clicking here.
