MiamiRealEstateKing

What can $200,000 buy in Miami or Miami Beach?

In real estate on June 4, 2009 at 3:22 pm

For $200K, you could buy a cool car like a Lamborghini Gallardo, pay for a four year degree at a private university or a buy place you can call “home” that can last you a lifetime (then, even bequest to your children and your children’s children – it has happened, you know).

This may sound too good to be true, but not these days. Check out a few statistics from our MLS (Multiple Listing Service) and ask yourself…is this the right time to buy?

In Miami-Dade County, there are approximately 11,470 Single Family Houses (SFH), actively for sale (all figures are as of the time of this publishing), of which, approximately 7500 (or about 65% of all SFH in the MLS) are for sale at or below  $400,000 (within FNMA guidelines and the only price group considered for this posting), while there are approximately 3400 SFH for sale at or below $200,000! The breakdown looks like this:

Price Range

Quantity

Average DOM

Summary

List Price

$149,999 or under

1,813

99.67

High

$400,000

$150,000 –  $199,999

1,547

99.25

Low

$9,900*

$200,000 – $249,999

1,257

157.75

Average

$222,681

$250,000 – $299,999

1,283

55.33

Median

$219,900

$300,000 – $349,999

787

102.38

 

$350,000 – $399,999

826

63.5

 

$400,000

40

0

 

*May be an error such as a rental incorrectly indicated for sale

In Miami Beach however, there are very few homes in this price range. In fact, there are less than 30 homes for sale below $400,000 in zip codes 33139, 33140 and 33141.  However, the same can’t be said for condominiums.  Out of a total of about 2300 condo units actively for sale at or below $400,000, the breakdown looks like this:

Price Range

Quantity

Average DOM

Summary

List Price

$149,999 or under

555

124.75

High

$400,000

$150,000 – $199,999

472

167.33

Low

$950*

$200,000 – $249,999

321

135

Average

$229,156

$250,000 – $299,999

374

0

Median

$220,000

$300,000 – $349,999

247

93.8

 

$350,000 – $399,999

321

0

 

$400,000

12

0

 

*Again, maybe a rental.

In this market, you can get a lot of bang for fewer bucks.  In fact, there are approximately 3000 SFH in Miami plus about 470 condos under contract pending in the Miami Beach area.

In addition, there have been approximately 4270 closed SFH transactions (again, all numbers are for properties at or below $400,000),  in the last 6 months (about 730 closed in May).  This is in contrast to the approximately 6400 SFH transactions closed by Realtors in all of 2008 so that, we should be able to easily beat 2008 closed sales in 2009.

Meanwhile we’ve had 712 closed Condo transactions in the Miami Beach area in the last 6 months (about 138 closed in May). Again, this is in contrast to the approximately 1428 Condo transactions closed by Realtors in all of 2008 so that, we should be able to also beat 2008 Condo closed sales in 2009.

Of all the inventory in Miami Beach, about 56 Condo units are REO (Real Estate Owned  typically taken back by lenders at auction after foreclosure) and about 790 are Short Sales (pre-foreclosures which are being sold for less than it is owed to the lenders).

In Miami, there are about 722 REO Single Family Houses and about 4100 SFH being offered as Short Sale in the MLS.

This leads to my final analysis.  Of all the SFH Pending contract, about 1200 are Short Sales and another 1358 are REO properties, while about 2600 REO Single Family Houses Closed in the last 6 months in Miami and another 433 Short Sales closed in the same time period.

In Miami Beach, there are about 100 Pending REO Condo sales while there are about 170 Condo Short Sales pending contract. Meanwhile, there were about 90 closed Short Sale and another 200 closed REO condos deals sold in the last 6 months.

For those looking for opportunities, fret no more because in Miami Beach, there are still about 50 REO and about 790 Short Sale Condominiums available for sale while there are about 720 REO and about 4200 Short Sale Single Family Houses available for sale to those ready to act today.

In the end, only those who prepare will get to cherry pick. Yet, buyers must understand that in this market, buying distressed properties requires different processes than that of regular sales and so, buyers must know how to present their offers so they get accepted.

This is no time to go it alone. Have a competent Realtor (member of a local board and the National Association of Realtors who adhere to a strict Code of Ethics) represent you (after all, the seller has one representing them), and preferably, one who is also a Certified Distressed Property Expert. There about 7500 of these nationwide and you can find one near you at www.CDPE.com.

Remember always…Luck is when Preparation Meets Opportunity.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: