September market report, by Dr. Karen

By Dr. Karen Lewis

September Market Report

In September, the housing market in South Florida began to cool off, and as a result, homebuyers had a more comprehensive inventory selection, according to a Zillow report. As inventory increased, the market saw home prices and rent growth ease as well. The market that was previously a sellers’ market had a somewhat balance with homebuyers having more inventory, at lower prices, and ultimately more time to make offers.

At a closer glance:

SALES

However, closed sales in Miami decreased by 3.6 percent year over year; September 2020 compared to September 2021. While closed sales fell, single-family homes paid for in cash rose significantly from last year—from 15.5 percent last year to 24.9 percent this September. A change that represents a 61.2 percent increase. Single-family homes might have seen a decrease in closed sales, but the same cannot be said for townhouses and condos. The number of closed sales jumped by 45.2 percent, with closed sales last September 1223 and 1790 this September. Townhouses and condos saw an increase this year in the number that was paid for in cash. 46.0 percent of townhouses and condos were paid for in cash compared to last year’s 39.0 percent.

INVENTORY

For most of last year and this year, housing inventory has been very tight—making it exceptionally very difficult to find a dream home. Compared to the previous year, September, Miami’s housing inventory for single-family homes almost halved this year. September 2020, Miami had 4,039 active listings; in September 2021, the active listings for single-family homes in Miami were 2,957.

It was the same for townhouses and condos, with a sharp 43.1 percent decrease in active listings. September last year, Miami had an active listing of condos and townhouses of 14,148; however, that dropped to 8,049 this September.

MEDIAN TIME TO CONTRACT AND SALE

The median time to contract for single-family homes was shorter this September, 18 days than last year’s September, 32 days. The drop from 32 to 18 represented a decrease of 43.8 percent. For Townhouses and condos, the median time to contract dropped by 41.7 percent this September; last year, the median time to contract was 60 days and 35 days this year. There was also a decrease in the median time to sale, where single-family homes were 84 days last year to 66 days this year. Conversely, townhouses had a median time to the sale of 100 days last September and 82 days this September.

The reduction in both median time to contract and sales can be explained by the demand and supply dynamics where the demand for homes has been so high that homes have been spending less time on the market. with homes staying on the market for a longer time. Compared to August, the days on the market rose by 7.4 percent, the months’ supply of inventory fell by 11.9 percent, based on data from RE/MAX’s National Housing Report. The number of closed sales month over month fell by 14.3 percent, while active inventory decreased by 6.8 percent. On the other hand, the median sales price fell to $390,000.

ABOUT ERIC FRAZIER:

Eric Lawrence Frazier is President and CEO of the Power Is Now Inc. The Power Is Now is a multimedia company specializing in real estate and mortgage education for consumers and real estate professionals on various topics in real estate, lending, economics, and government policy since September 1, 2009. The financial and real estate information is distributed through BlogTalkRadio, iTunes, TuneIn, and other online radio platforms nationwide, as well as online TV and eMagazines. Connect with Eric Frazier DRE 01143484 | NMLS 461807 | Office: 800-401-8994 x 703 | Direct: 714-361-2105 and start your real estate investment journey or homeownership in safe hands.

MONTH’S SUPPLY

Month’s supply for both townhouses and single-family homes dropped sharply this year. The housing market as a whole experienced heightened demand with very little supply to sate it. The month’s supply for single-family homes in September 2020 was 3.8 and dropped to 2.2 in September 2021—accounting for a 42.1 percent drop.

For townhouses and condos, the month’s supply for last year September was 14 and decreased to 4.3 this September. The uncertainty brought by the Covid-19 pandemic and the wave of millennials entering the housing market caused the sharp shrinkage in inventory.

BOTTOM-LINE

Homes in September are selling at a slower rate,

ABOUT THE POWER IS NOW MEDIA

The Power Is Now Media is an online multimedia company founded in 2009 by Eric L. Frazier, MBA, headquartered in Riverside, California. We advocate for homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. The Power Is Now Media corporate office is located at 3739 6th Street Riverside, CA 92501. Ph: 800-401-8994 Website: www.thepowerisnow.com

Eric Lawrence Frazier, MBA. President and Founder, The Power Is Now Media

Work Cited

https://www.miamirealtors.com/news/south-florida-market-stats/september2021/#1569530848291-b9a19666-aef7 https://southfloridaagentmagazine.com/2021/10/20/re-max-miami-housingmarket-takes-a-pause-in-september/

HOW TO PROTECT YOURSELF FROM SCAM ARTISTS FOLLOWING WILDFIRE DAMAGE

Unfortunately, natural disasters present opportunities for scammers to take advantage of people when they’re at their most vulnerable. If your house suffers damage from a wildfire, take the following steps to ensure anyone offering grant money or anyone hired to work on repairs is legitimate.

TO MAKE SURE YOUR HOME INSPECTOR IS LEGITIMATE:

• If a housing inspector comes by and claims to represent the Federal Emergency Management Administration (FEMA) or the Small Business Administration (SBA), ask to see the inspector’s identification badge, which all federal employees and contractors are required to carry.

• Remember that FEMA and SBA staff will never ask to see your banking information or charge you for disaster assistance. Do not give out your personal information.

• Know that FEMA housing inspectors will not hire specific contractors to fix your damage.

TO MAKE SURE YOUR CONTRACTOR IS LEGITIMATE:

• Deal only with licensed contractors. Ask to see physical verification of the person’s license.

• Check that the license is valid by calling the Contractor’s State License Board toll-free at 1-800-321-2752, or by visiting cslb.ca.gov.

• Ask for references.

• Get a written contract, and make sure it contains everything you’ve talked about in person. If it’s not in the contract, the contractor can’t be held accountable for making it happen.

• Don’t pay in cash, and never pay for the entire project before the work is completed. TO MAKE SURE YOU’RE NOT A VICTIM — OR PERPETRATOR — OF PRICE GOUGING:

• Price gouging laws prohibit raising rental housing costs by more than 10 percent following the declaration of a state of emergency. Please note that price gouging is a complicated issue — for more details, visit the California Attorney General’s website at oag.ca.gov/consumers/ pricegougingduringdisasters.

• You can check to see if a declaration of emergency is in effect by visiting gov.ca.gov.

• If you feel you’re experiencing price gouging following a wildfire, you can file a complaint with the Attorney General’s office by calling 1-800-952-5225. You can also get a referral for a lawyer by contacting the State Bar at 866-442-2529 or visiting calbar.ca.gov.

Sources: “Don’t Get Burned After a Disaster.” California Department of Insurance. January 2019. “Beware of Post-Wildfire Scams.” Federal Emergency Management Agency. December 14, 2018. “FAQs on Price Gouging.” State of California Department of Justice.