Miami Shores Housing Report: Q1-Q3

SUMMARY OF OUR 2024 MIAMI SHORES HOUSING REPORT

Despite this neighborhood experiencing what ‘feels’ like a slower market, overall home values have gone up since 2023. Figures show a 7.68% increase in value with only a slight increase in inventory levels. The best metric to figure out the pace of the market is looking at the Cumulative Days on Market, which has a small change of 3 days. Even with high rates throughout the year, it shows homes were not sitting on the market for long. This can be attributed to sellers being more realistic with their prices, as the figures show a 5.4% average discount on asking price.

Overall in terms of price per sqft there actually appears to be a significant increase from 2024 of $681 compared to 2023 with $594 in price per sqft. This is a change of 14%. That's great to see considering the macro events in the global economy.

Miami Shores’s 2025 looks promising and residential real estate long-term prospects over the next 3-5 years is very promising due to significant population replacement with major corporate commercial construction coming to fruition. Miami is and will be a continued emerging hub for high-earning residents and businesses alike and there is major upside across most luxury markets. In the short term there is stability and in some cases corrections within specific markets. Problems focus mainly around lower level and lower quality product: old buildings and older homes particularly in high flood zone risk areas.

Taking Action from 2024 Buyer and Seller Psychology

As someone who deeply understands market dynamics and buyer behavior, my approach focuses on blending data analysis with insights gained from daily interactions with clients and industry professionals. By listening closely to the hundreds of buyers and sellers I engage with annually, I uncover the reasons behind these market trends. This allows me to predict shifts with greater accuracy and offer more informed guidance.

In 2024, the overall sentiment among buyers can be described as cautious, with many grappling with high home prices, increased interest rates, and a lack of desirable options, leading them to hold off for the perfect opportunity.

Sellers, on the other hand, face their own set of challenges, particularly the limited availability of suitable replacement properties. This scarcity often causes them to aim for top dollar, though those with less-than-perfect homes should consider adjusting their expectations to better align with current market realities.

Looking ahead, a potential decline in interest rates could unleash a wave of pent-up demand, revitalizing the market and possibly driving prices up once again. For buyers, focusing on prime areas like Miami Shores, El Portal, Morningside, and Belle Meade remains a wise move, though it’s crucial to monitor interest rate trends and inventory levels closely. Notably, in Q2 and Q3 of 2024, I’ve observed a noticeable shift in seller psychology. More sellers are now realizing that pricing homes above record levels per square foot is not resonating with buyers, prompting a more realistic approach to pricing. This trend is likely to continue, making strategic pricing essential for success in today’s evolving market landscape.

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