The 2020 Q2 and Q3 Miami Real Estate Report. An Analytical perspective.

Part 1. An economical and analytical discussion of the Miami Market During the Last 6 Months of COVID between two top analysts.

The 2020 Q2 and Q3 Miami Real Estate Report will give you the best optics on the Miami real estate market whether you are relocating, looking for a second home or just looking for opportunity. In this section Ana Bozovic and myself, two of Miami’s most influential real estate analyst and experts, will clarify what happened during these last 6 months. We will discuss the macroeconomic factors that played a role and how these have affected Miami’s micro markets. After watching our video you will have a clear idea of what is happening in the Miami real estate market; how the condo market differs from the single-family home market, which markets are performing stronger than ever and which markets provide for great opportunities.

This complete Miami market report consists of 4 parts of which this is the first one. In parts 2 and 3 of this report we will deep dive into the Miami condo market and the Miami single-family home market and we will provide you with the key statistics and narrative on the different sub-markets. It will show a clear difference in performance between condos and homes and identify the strongest and weakest sub-markets. The fourth and last part is another interview, this time with South Florida’s top performing realtors including agents from Fort Lauderdale and Palm Beach in which we clarify the difference between the various South Florida communities. We will discuss what you can expect to pay in the different communities, where you can find the best beachfront homes, where you can find the best ultra-luxury condos, the different lifestyles, the best schools, the inventory of new construction homes & condos and much more.

The Miami Single-Family Home Market Before and During Covid-19

The single-family home market behaves in a completely different way than the condo market. Single-family homes represent the primary markets and this is a necessary purchase. Not only do they cater to local families, they cater to relocation families (the largest chunk of buyers right now) and the investor classes. Buyers in this market need to find a home for their family and during Covid there is more and more need for indoor and outdoor space as well as a home office. While before Covid many buyers were indecisive between a home and a condo, these days a home will win it from any condo. This market is seeing increased interest from relocation buyers (the majority of buyers right now) from the northeast or other high-tax states such as California. As mentioned before Covid-19 sped up the need to move to Florida and to get away from dense city cores or small inner city condo units.  The pandemic made people to start looking at their lives and realize Miami might give them a better lifestyle. If you can work from anywhere; why not Miami? No taxes, good schools, more affordable real estate, a great lifestyle and summer all year round. Another important aspect is that this market caters to the investor class. As the feds intended to increase economic activity by injecting more cash into the system, the stock market rallied and investors saw their net worth surge. These higher-income classes suffered least from the economic impacts of Covid-19 and their line of work generally allows them to work from anywhere in the world.

The Best Performing Single Family Markets

Most of these buyers, whether they are local or relocation buyers, are looking at the $1M-$3M dollar range in Coral Gables, Coconut Grove, Pinecrest, Ponce Davis or Miami Beach.  People are looking for safe neighborhoods with a sense of community near the best private schools and therefore these markets are very strong right now. While we received many requests for these homes before Corona, our website recorded 800% more registrations during the pandemic than before and 75% of inquiries are for the above markets. Good quality homes are sold in record time, sometimes with back up offers in place. We see a limited inventory of good quality homes in this price range and buyers need to be ready to make a strong offer right away, in order to not loose out.

Browse properties for sale in these neighborhoods:

The tax migration also resulted in a strong increase of ultra-luxury home sales across Miami Dade. We saw an increased amount of $10M+ sales with most of these homes selling in exclusive communities such as Gables Estates in Coral Gables, Miami Beach and the Miami Beach Islands. Compared to many US markets Miami is still very affordable and many tax refugees from LA and NYC are looking for large and ultra-luxurious waterfront mansions.

One market that is very strong and that is experiencing a lack of inventory are brand new homes. The majority of today’s buyers want new construction homes and while the supply is limited across all price ranges, it is particularly scarce in the lower price ranges. Buyers, now more than ever, need to be connected to good agents who can tell them about new product before it hits the market (these homes often sell among top agents before they can even hit the market).