Florida’s Magic City is pulling an interesting trick these days: On one hand, Miami’s housing market has slowed to a crawl in recent months as prices fall amid plunging sales; on the other hand, its luxury sector is booming.
Based on a Realtor.com analysis of months of supply in markets across the country—which indicates how competitive a market is—Miami has now solidly shifted into a buyer’s market. The city has 9.7 months of inventory—the highest level in the country—which means it would take almost 10 months for all the for-sale homes in Miami to sell at the current sales pace, assuming no other listing is added.
This inventory glut, brought about by a recent construction boom in the state and dwindling demand caused by ongoing affordability issues, is pushing prices down in the Miami housing market—with the exception of luxury homes, for which demand remains strong.
Miami’s Market Woes
Miami is suffering as a result of the same trends that have forced the U.S. housing market to a slowdown this year and have pushed Florida into an even starker correction…