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Special Edition: The Miami Beaches Market Pulse: June 2016 – 1st Half of the Year Report, Part 1 of 2

Christopher J. Lazaro, MBA Licensed Real Estate Broker & REALTOR® Christopher J. Lazaro, MBA, Licensed Real Estate Broker & REALTOR®, 1-800-798-9192 ext. 333, License #: BK3252123, Metro International Investments, MLS: http://REBroker.Miami
Miami Beach

Aerial View of Miami Beach – South Beach & Fisher Island

As expected, the Miami Beaches continue to correct and listing volume continues to increase as more homeowners default on their mortgages and new construction projects complete, leading to the seemingly inevitable listing of many beautiful, yet vastly overpriced new construction units.  It should be noted that the media has finally jumped on the notion that not all is as perfect with the housing market, as so many seem to still often assume (simply because it, after all, is Miami Beach), as developers are either scrapping projects and selling their land or racing to complete their projects before the financial institutions backing them lose their confidence and pull funding (I still think it is still a bit premature for that to occur).

My June article is overdue, but my business in distressed assets has been growing rapidly, thus delaying me from making the time to publishing my data.  Fortunately the real estate business, as opposed to the stock market, moves like an air craft carrier; and the trends we have been seeing for more than 18 months continue to play out as expected.

I have already collected & uploaded my July data, and the June distressed data…so I will be brief in my commentary in this article as there is MUCH to be said in my forthcoming articles.  Tomorrow I will collect the August data and aspire to have that out in a more timely manner.

Market Activity & Neighborhood Reports by Zip Code for the Miami Beaches

33139 – South Beach

Median Est. Home Value: $391K, Up 1.1%; Median Est. Listing Price: $279K, Up 5.3%; Median Days in RPR: 120 Up 5.3%; Sales Volume: 104, Down –33.8%

Click here to receive the 33139 Market Report

Click here to receive the 33139 Neighborhood Report

MLS Sales Volume is near a 3 year low.  Listing Volume is at a 3 year high.

33140 – Mid-Beach

Median Est. Home Value: $496K,  Up 4.6%; Median Est. Listing Price: $479K, Up 20.1%; Median Days in RPR: 120, – (flat); Sales Volume: 46, Down –27%

Click here to receive the 33140 Market Activity Report

Click here to receive the 33140 Neighborhood Report

MLS Sales Volume is near a 3 year low.  Listing Volume is at a 3 year high.

 

33141 – North Beach & North Bay Village

Median Est. Home Value: $262K, Up 0.1%; Median Est. Listing Price: $264K, Up 15.2%; Median Days in RPR: 109, Up –3.8%; Sales Volume: 75, Down –25.7%

Click here to receive the 33141 Market Activity Report

Click here to receive the 33141 Neighborhood Report

MLS Sales Volume is near a 3 year low.  Listing Volume is at a 3 year high.

33154 – Bal Harbour & Bay Harbor Islands

Median Est. Home Value: $672K, Up 15.3%; Median Est. Listing Price: $547K, Up 20.7%; Median Days in RPR: 131, Up 1.6%; Sales Volume: 28, Down –22.2%

Click here to receive the 33154 Market Activity Report

Click here to receive the 33154 Neighborhood Report

MLS Sales Volume is at a 3 year low.  Listing Volume is at a 3 year high.

33160 – Sunny Isles Beach, Eastern Shores & Golden Beach

Median Est. Home Value: $352K, Up 0.7%;  Median Est. Listing Price: $325K, Up 25%; Median Days in RPR: 125, Up 10.6%; Sales Volume: 89, Down –42.2%

Click here to receive the 33160 Market Activity Report

Click here to receive the 33160 Neighborhood Report

MLS Sales Volume is at a 3 year low.  Listing Volume is at a 3 year high.

Summary

Overall, Median Estimated Home Values & Median Estimated Listing Prices continue to climb; but as they do, Sales Volume continues to plummet, homes are on the market for longer periods of time, and listing inventory continues to build to new highs.

I do not necessarily concern myself with whether the market is going up or down.  In my profession, the experienced professional realizes that people will always need a place to live; and regardless of economic conditions, there will be Buyers and Sellers.

I do however feel as though we are at a precipice.  On one hand, assuming the Federal Reserve does raise interest rates, it will absolutely crush asset values.  It has been argued by some economists that we cannot raise interest rates (much) without forcing the US Government to default on it’s loans; and this is true.  Recently an economic paper was floated by one of the Federal Reserve board members regarding a call for additional “quantitative easing”, which is a very fancy phrase for “Printing More Money”.  Assuming this were to occur, it would have extraordinary ramifications on our economy; and as far as the housing market is concerned, it will drive assets (in terms of US Dollars) through the roof, however, that will not be because of an increase in real value, it will be because of inflation and a loss of the Dollar’s purchasing power.

Regardless of who becomes President, they will have a huge task ahead of them if this country has any hope of “normalizing” the asset markets and bringing fiscal responsibility back to the forefront of our government’s responsibilities.  We live in interesting times, and I am betting they (the Federal Reserve) will do another “quantitative easing”.  My recommendation is to buy a home, or investment(s) you can comfortably hold, and/or buy Silver and/or Gold.  More money printing will absolutely erode the value of the Dollar and hard assets are your best, legal, inflation hedge against a loss of purchasing power in the Dollar.

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About Christopher J. Lazaro (52 Articles)
I am a Licensed Real Estate Broker specializing in Residential Real Estate transactions from Downtown Miami, through the Miami Beaches and into Fort Lauderdale along the US1 Corridor and East. Whether you are a First Time Home Buyer, an Institutional Buyer, or Private Investor, I will be happy to provide you a consultation to evaluate your real estate investment goals. I can be reached at 1-800-798-9192 ext. 333. My MLS Website can be found at http://REBroker.Miami. I am a Qualifying Broker for and partner in, Metro International Investments.

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