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Stunningly Scarce Inventory Sparks Market Impasse | Kendall Q1 and Q2 2023 Real Estate Report
Stunningly Scarce Inventory Sparks Market Impasse
Kendall Q1 and Q2 2023 Real Estate Report. Kendall is not immune to the general Miami real estate market trend. Sellers are cautious about selling due to higher interest rates when purchasing their next home. Buyers are prudent in buying for the same reason.
This creates a market where the smart dollar is what will prevail. What I mean is, that inventory is so low now that the days of buying sight-unseen are in the rearview. As per our market statistics software, inventory in Kendall is sitting below 3 months. Homeowners simply do not want to give up their locked-in rates from three years ago so easily.
So, besides the obvious spike in interest rates, what else is causing this inventory squeeze? For starters, there were not many new homes built in the last 3 years. On average, about 13 new homes are sold per year in Kendall. This trend, however, is starting to dissipate.
New preconstruction projects such as Dice Point and the luxury build Centris are starting to lure new buyers to Kendall. Centris will close out its project with about 50+ new homes, with more than half already sold. Even with new products being injected into the Kendall market, prices remain at all-time highs. Currently, there are 17 new homes (built between 2020 through today) listed for sale. They are available on average between $700 per sqft – $1,000 per sqft., with lots averaging 4,500 sqft and above
To put the current Kendall market trend into numbers, 345 homes were sold through the half of this year. Compare that to last year with 460 homes sold during the same period – a 25% drop. Again, we see the hesitancy to give up those cherished low rates by sellers.
Advice for buyers
If you are a cash buyer, you will have a slight edge over conventional buyers. Why only slightly? Even though the tried and true “cash is king” motto holds strong when buying real estate, sellers aren’t really in a hurry to sell. Sellers know that they have an advantage, albeit a minor one, in this market. As of the date of this article, there are currently 150+ properties available for sale in Kendall – about 90 of them being single-family homes. Of those 90, less than a third are sub $1M. The pickings are certainly slim, so before you begin to hunt for a home in Kendall, be sure to research our market statistics page.
Advice for sellers
Kendall is currently a neutral market with a minor lean in the seller’s favor. This in no way means that you as the seller can call all the shots in a negotiation. The conventional buyer knows they are going to get into an interest rate of 7% or more, so they are pickier about their next home purchase. Don’t forget to check out the seller tools on our site. Pricing your home incorrectly could cost you not only money but time as well. Our agent network will help give your property the exposure needed to be sold in this interesting market.
Read our other neighborhood and luxury reports
If you would like to get perspective on other specific neighborhoods or luxury reports. Please click here to go to our main database of reports. We update these every 6 months.
Schedule Time with David and Andy (Our Kendall Expert)
FAQ
These are the most commonly asked Google Real Estate Related questions
I see the market is a sellers market, what does that mean?
A sellers market is a market in which there is more demand than supply. Therefore sellers have an advantage. A balanced market is a market in which neither buyers nor sellers have an advantage.
Do you think home prices will come down any time soon?
The nation, and Miami, is experiencing a severe housing shortage we need to address, especially when it comes to single-family houses. We see many new condos being construction, but most of Miami’s new condos are in the $2,000 per SF + range, so this caters only to a small group of buyers.
We are still in the expansion phase and given we are not building sufficient housing units to cover the 4 million in shortage, we do not expect to enter the hyper-supply phase any time soon.
In addition, everyone is waiting for the crash. There is so much money waiting for when the market goes down that almost by definition the market will not crash. If prices will come down by 10% many people will start buying. There is a lot of money waiting to get into this market, in combination with a shortage of properties. As a result, a strong correction is highly unlikely.
For more information please listen to our latest podcast in which we discuss the likelihood of the market to crash with a FIU professor of Real Estate: https://luxlifemiamiblog.com/is-a-miami-real-estate-crash-coming-the-economic-truth-with-fiu-professor-eli-beracha/
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