How Did Hurricane Irma Impact Home Sales in Miami How Did Hurricane Irma Impact Home Sales in Miami

How Did Hurricane Irma Impact Home Sales in Miami

Friday, November 17, 2017
Tags:   home sales

Hurricane Irma Strikes

For those of you that don’t remember, Hurricane Irma made landfall in the lower Florida Keys as a Category 4 storm on September 10, 2017. In Miami, Irma brought Category 1 winds. The damage was mostly limited to fallen trees. However, because of the early September arrival of the storm, nearly the entire last month of the third quarter’s sales were affected. In addition to storm preparations, the storm itself, and the aftermath, power wasn’t restored fully until September 19, 2017.

Home Sales Stall Temporarily

The data is in. Hurricane Irma stalled several hundred home sales in the Miami-Dade area in the third quarter. Local buyers and sellers experienced delays for many Hurricane Irma related reasons, during all aspects of home sales, including:

  • Rescheduled appraisals;
  • Rescheduled inspections; and
  • Clearing tree debris.

This, according to a new report issued by the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system. The good news is, things are expected to return to normal very soon. According to 2017 MIAMI Chairman of the Board Christopher Zoller, “Existing single-family and condos are expected to return to pre-Irma sales levels as Miami homes get re-inspected and stalled transactions finalize. Miami continues to boast a growing population and healthy employment — two fundamentals key for home sales.”

Comparison of Home Sales 2017 to 2016 in the Third Quarter

Third quarter sales data includes declines in single – family and existing condo sales. For example, comparing third quarter sales year over year declined 16.3 percent, from 3,433 to 2,874. Similarly, existing condo sales (not to be confused with new construction sales) declined 9.0 percent in the third quarter, from 3,318 to 3,021.

Median Home Prices on the Rise in Miami

For the 23rd consecutive quarter, median home prices for single family homes increased. Comparing third quarter single family home sales from 2016 to 2017 reveals a 10.6 percent increase in price. This reflects an increase over the state wide average, which posted a 6.7 percent increase in median home prices in the third quarter. In 2016, the median single-family home price was $300,000. In 2017, the median single-family home price was $331,750.

Similarly, the median price for existing condominiums increased from $217,000 to $227,000 from 2016 to 2017. This represents a 4.8 percent increase in price in the Miami area. Statewide, condo-townhome properties increased 7.5 percent over last year’s third quarter. However, the median price for condo-townhomes statewide is less than in the Miami area. Statewide, the median price for condo-townhome properties is $172,000.

National Trends

Despite clearly identifiable reasons for delays in home sales in the third quarter in Miami, home sales are declining across the country. Nationwide, home sales declined 3.1 percent in the third quarter.

Seller’s Market, Buyer’s Market

Based on the number of listings, and the current pace of sales, experts forecast a seller’s market for single family homes. Further, based on the same information, existing condo-townhouses are considered a great deal for buyers.

If You are Interested in Buying or Selling Your Home

If you are interested in buying or selling your home, please consider Global Life Realty. Our experienced team can work with you to list your home or find the home of your dreams.

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