Morris Massre is a Realtor with Berkshire Hathaway HomeServices Florida Realty working in Miami.
Every week, we ask a Miami real estate professional for their thoughts on the top three stories from the week before. This week, we spoke with Morris Massre, a Realtor with Berkshire Hathaway HomeServices Florida Realty.
Miami Agent (MA): Before buyers and sellers reach out to a real estate agent, more often than not they’re starting their search online. What have you done to increase your online presence?
Morris Massre (MM): With the Internet being so readily available, most people start their searchers online, which is why building a strong Web presence has become a must in the industry. I increase my exposure by staying active on all the major social media platforms – Facebook, Twitter, Instagram, Pinterest, LinkedIn, etc. I also do a lot of online blogging at places like ActiveRain. It allows my clients to know that I’m knowledgeable on both the area and the industry before they ever meet me in person.
MA: A recent report from the National Association of Realtors found that slightly diminished national sales activity was the result of a number of cash investors leaving the market. Have you noticed this trend in Miami, and how, if at all, has it affected your business?
MM: I’ve notice they’re leaving, and what’s more, they’re doing it in droves. However, it’s not because investors are physically leaving the Miami area, but rather they’re moving on to do other things. I think they know the market is drying up, and now, since they’ve already gotten what they can out of it, they’re pulling their money and moving on to newer, more lucrative options.
Has it hurt? Definitely, especially considering all the new construction. If enough investors leave the market, those condo towers that have been popping up around the city could end up sitting empty for a very long time. In regards to why they’re leaving the market, it all comes down to timing. They’ve made their money and now they can see the end on the horizon, so they’re getting out while they still have a profit.
Fortunately, in the long run, this could end up being good for the local buyers who have struggled against unmatchable all-cash offers.
MA: Miami Association of Realtors released data this week that overall sales were down in the city in August. What do you think is driving this decline?
MM: The fleeing investors are definitely behind the reduced sales activity, but those losses are largely in the condo market, which is where investors have put a lot of their money. That is definitely the main driver behind reduced sales.
The second reason, though, and this is drawing from my own experience, is that principle buyers in the single-family home market are so tired of losing out to cash offers that they’ve decided to simply wait out the market. They’re hoping that in a few months or a year, the number of cash offers will have dropped and they’ll have a better chance of getting a home they want for a price they can afford. It’s an incredible roller coaster for a buyer, especially a first-time buyer, to lose four or five homes to unmatchable cash offers before they’re able to close on a house.