Sobering News For Luxury Home Sellers | Worst October Since 2011
If you are a regular reader of my blog, then you know that I have been harping on how slow our market has been over the past few months. Coconut Grove has seen the number of overall sales decline dramatically in 2016.
Today I wanted to show you that Coconut Grove is not alone in this trend, and that we are experiencing similar numbers across Miami. Ron Shuffield, President and CEO of EWM Realty International, was recently interviewed about Miami’s luxury home market and the numbers he presented were sobering to say the least. For instance, this past October was the worst October for Miami homes priced over $1,000,000 since 2011. Comparing October to last year, there were only 94 luxury homes sold in Miami, whereas there were 145 sold in 2015. To make matters worse, the sluggish sales are combined with excess inventory – Miami currently has a 3 year supply of luxury homes on the market whereas an 18 months supply is healthy. These factors have lead to buyers sitting on the sidelines and feeling like they can shop around for deals.
Shuffield’s advice? REDUCE, REDUCE, REDUCE. He says “It is our astute sellers that are making sales today,” and “When you have inventory growing to this level and sales falling off, the major motivator to buyers is going to be an adjustment in price.”
To really bring the message home about how important price reductions are, take a look at these two Coconut Grove sales that came across the wire this morning:
- 3531 East Glencoe Street | Original List Price: $1,950,000 | List Price At Time Of Sale: $1,490,000 | Sale Price: $1,150,000 | Months On The Market: 5
- 1666 Tigertail Avenue | Original List Price: $2,800,000 | List Price At Time Of Sale: $2,599,000 | Sale Price: $2,270,000 | Months On The Market: 9
If you have your home listed for sale and aren’t getting much activity, you should seriously consider a price reduction to make the home stand out.