The Miami housing market is showing signs of normalizing after years of high price activity, according new third quarter data from national tech-driven real estate platform Compass. In addition to prices trending downwards, listing inventory and total sales volume also declined in many neighborhoods.
“Price corrections are a healthy adjustment in a housing market stabilizing after years of double-digit rises in pricing,” said Beth Butler, President of Compass Florida. “Sellers are realizing they need to come down from peak pricing, and as a result, more buyers will start to move into the market. With mortgage rates still at historic lows and prices coming down, I expect a healthy 4th quarter in Miami-Dade.”
According to real-time residential market report app Compass Markets, the Q3 2016 median sales price in the City of Miami was $308,750 – down 7.8% from the prior year third quarter. Median price-per-square-foot, total closed sales, and total $ volume also dipped year-over-year to $291 (-8.2%), 1888 (-30.9%), and $766.43M (-38.6%), respectively.
In nearby Miami Beach, the Q3 numbers paint a similar picture. The median price was down 1.9% from this time last year to $370,000. Total closed Sales and total $ volume also fell, while median price-per-square-foot was actually up 3.5% YoY to $425.
Coconut Grove also showed signs of leveling off with the median Q3 2016 price falling 7.3% to $%79,095 from the same time period last year. Median price-per-square-foot, total closed sales, and total $ volume also saw declines.
Unlike traditional quarterly market reports, “Compass Markets” eliminates the industry-wide data reporting problem by offering statistical data that updates anytime, anywhere. Developed by Compass’s team of 50+ in-house engineers, “Compass Markets” allows consumers to customize market searches by neighborhood, housing type, number of bedrooms, and price range. Year-over-year analysis, complete with live graphs, is available in a number of categories including median price, median price-per-square-foot, total listings, total dollar volume, days on market, and negotiability.
The “Compass Markets” app for iOS is one of many significant developments led by Compass. The company has quickly grown its offering of proprietary tools that it provides to its agents to help them value and market properties for clients. The App is available for iPhone or iPad users, and is absolutely free.
In total, Compass has raised $210 million in investor funding, from key investors including Wellington Management LLP, Institutional Venture Partners, Thrive Capital, Founders Fund, 406 Ventures, Advance Publications, Inc., Kenneth Chenault, CEO of American Express and Marc Benioff, Founder and CEO of Salesforce.com.
Compass was co-founded by Ori Allon, a technology entrepreneur who has previously sold companies to Twitter and Google; and Robert Reffkin, who previously worked at McKinsey, the White House, and Goldman Sachs in private equity and most recently as Chief of Staff to the President & COO.
About Compass:
Compass is a luxury real estate platform with best-in-class technology dedicated to creating a seamless and intelligent home buying, selling, and renting experience. Combining the country’s top agents, proprietary market insights, and integrated mobile and web technologies, Compass is developing the future of real estate decision-making. Compass has more than 1,000 top engineers, marketing experts, business professionals, and agents across locations in New York City, Washington DC, Boston, Cambridge, Miami, Los Angeles, Malibu, Santa Barbara, Aspen, the Hamptons, and San Francisco and has raised $210 billion in investor capital. For more information on Compass, and to view exclusive Compass properties, visit www.compass.com
