Miami has in no doubt been affected by the pandemic for the last two years. The same can especially be said about the real estate market. The dramatic decrease in buyers during the beginning of the pandemic has caused long-term implications. What is now occurring is a sudden increase in buyers, but a decrease in properties to buy. This in turn has led to a highly competitive market in the biggest city in Florida.

Miami, host to one of the biggest real estate markets in the country, has become victim to lower property counts but a massive increase in buyers. This, unfortunately, has the expected effect:  low supply, high demand. As a result, prices have soared. Despite all of this, closings have increased tremendously from last year. Miami Beach has had almost four times as many closings as it did last year. However, supply is down as there is currently only around four and a half months’ worth of active listings. In comparison, there was almost ten months’ worth in the beginning of the year and around thirty-eight last year. Clearly there is a shortage of properties but that is not stopping price increases and the number of buyers that want to take advantage before anything drastic happens.

Miami has become one of the most sought out places to work now that the option to work remotely is available and lockdown has been easing, however this could all change if the recent increase in COVID cases continues.

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Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.

2021 so far has been a turbulent year as COVID continues and people are still uncertain when it will all end. Despite being more than a year into the pandemic, some areas such as the housing market are bouncing back. This is especially apparent in the Miami real estate scene. Increasing supply accompanied by very increasing demand is creating a highly competitive market, even in the wake of COVID. This surge can be attributed to a number of different components.

For starters, potential sellers are getting more comfortable with the idea of selling their homes during the pandemic. Although nerve-racking at first, both parties have found just how easy it is to complete the transaction. Sellers are feeling more confident in making big financial decisions now that businesses and vaccine availability is on the rise.

The economy is starting to bounce back so more listings are being created. A new wave of buyers is starting to arrive which means more people are confident with making big purchases in today’s market. Numbers have already shown that more money is being poured into listings everywhere, especially Miami.

However, as a result of the huge influx of listings and potential buyers, prices have considerably increased. Compared to last year, more houses and properties have been sold, but the prices have increased. This may have negative consequences on the housing market as buyers may be less enthusiastic about purchasing properties which can therefore throw off the balance of an already delicate market.

CMC Group offers luxury real estate all over Miami and is eagerly awaiting your inquiry! Contact us today!

Learn more about Italian-born real estate developer Ugo Colombo, CMC Group President.