The market is slowing down - what does this mean for your business?
The South Florida market is finally getting a breather from the highs - and the stresses - of the last two years. In Miami-Dade County, pended and closed sales were down this August 17% and 30% vs. August of last year, although they picked up moderately from last month's low.
While this fall and winter will no doubt bring back the snowbirds and kick some portion of the market back into gear, the higher interest rates and broader economic environment mean things won’t be as busy as in the previous two years, and prices won’t be what they used to be either.
After months of continuous price increases, price per square foot and average sold price have come down in August by 8.4% and 9.8% vs. July, respectively.
Additionally, the count of price decreases for active listings has continued to rise as sellers adjust to the rapidly changing market conditions. The market experienced 2,348 price drops in Miami-Dade in August, representing 24% of all active listings. The aggressively priced listings that still garnered lines around the block from earlier this year are gone, providing a pocket of opportunity for motivated buyers, and a requirement for realistic pricing for sellers.
To recap, the market is slowing down, meaning fewer deals for real estate agents like you. More clients may drop out of the process as their budgets shrink due to higher interest rates or market shifts. This means you will need to both generate more leads and spend more time and effort advising your clients to get to the finish line in order to make the same in commissions as you did last year.
How can you do that?
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