The South Miami Real Estate Market Report for Q4 2020 | What to Expect Going into 2021?
South Miami Homes for Sale | What to Expect Going into 2021?
Those who read part 3 of our Q2 and Q3 Miami real estate report (The Miami Real Estate Market before and during Covid-19) already know the strength of the Miami single-family home market. Just like other desired residential areas, the South Miami* single-family home market has really gained in strength in the last quarters. Please read below how the South Miami real estate market performed in the last 6 months of 2020 and what we expect to see in 2021!
* For this research we included the neighborhood of High Pines
The David Siddons Group sold this property on 5208 SW 76th St in High Pines before it was officially announced to the market. This beautiful 2019 construction sold for $3,430,000 or $602 per SF.
South Miami Real Estate Market Report | Q3 and Q4 of 2020
South Miami is one of Miami’s most desired neighborhoods and close to the city’s best private schools. As Miami is experiencing a very high amount of relocations, mostly of families with young children, the area is very much in demand and has seen a large increase in sales in 2020.
Looking at the sales data in the graphs below we see that the market of $1.5M+ homes has really gained in strength in the last months of 2020. Compared to the same period in the year before we see a 100% increase in sales (from 11 to 22 sales) and a 11% increase in the average sales price per SF. The average discount on the final listing price was already low with just 6% of discount and has now decreased to as low as 5%. Not shown in the tables, but certainly important to mention is that the average days on market decreased from 165 days in 2019 to 98 in 2020, a 40% faster marketing time. Arguably the most important key indicator in real estate is inventory; measured in months. The months of inventory provide you with information about the supply and demand relationship or the absorption rate of a market. The months indicated here are the months it will take to sell all available product if no new product were to enter the market. Between 6 and 9 months is generally considered a neutral or balanced market while less than 6 is a sellers market and more than 9 a buyers market. As you can see the inventory in South Miami is as low as 6 months indicating a very bearish market.
We noticed that in 2020 72% of the homes that sold were homes constructed in 2015 or later. This is indeed by far the most desired type of home for today’s buyers. However only 54% of the available listings are new construction. This means that new construction homes are most likely to become even scarcer and prices to increase. In 2020, a new construction home sold on average for $520 per SF while an older construction sold for $477 per SF.
The South Miami Real Estate Market in 2021
We expect this market to continue gaining in strength. Miami is still seeing a high influx of the so-called tax migrants (mostly from the Northeast) that are looking for good quality homes in Miami’s best residential areas. This trend is being reinforced by an enormous amount of companies that make the move to Miami and of course the media hype around this entire topic. As one of Miami’s best located and most desired locations South Miami will continue to experience an increased demand for homes and continue to flourish. Since real estate prices in other desired areas such as Coconut Grove and Coral Gables are also increasing, South Miami remains relatively more affordable than the previously mentioned areas. With the low levels of inventory we are currently experiencing in this market we expect prices to increase further and buyers will need to be ready to make a strong offer, specially when you are in the market for a newer home. Newer homes or very well-updated homes are scarce and we need new homes to enter the market to meet demand.
If you are a seller of a South Miami/High Pines home, this is the moment to sell. We have buyers lined up for homes in the area and top dollar can be achieved. If you are a buyer in the area we recommend to move fast. Good quality homes are sold within days!
South Miami Real Estate Market Report: Which South Miami Homes sold in 2020?
Please find below several homes that closed in the last year to get a better glimpse of what is selling!