Distressed sales in Miami have dropped significantly in the first quarter of 2017 and since last year, a positive development for a market readjusting after a boom while shaking off some effects of the market crash.
According to a new report by Douglas Elliman, sales of distressed properties in Miami dropped by about 52 percent for condos and 38 percent for single-family homes in Q1 of 2017 when compared to the same time last year.
The condo market’s dramatic reduction in distressed sales is a good sign for a sector of the market that is having issues, like unusually high inventory that is dropping condo prices and ramping up competition among sellers.
Good news for condos
There were 187 distressed condos closed on in Q1, which is a drop-off of 17.6 percent from the fourth quarter of 2016 and a reduction of 52 percent year-over-year, according to the report. The median sales price for a distressed condo is $163,000, a 9.4 percent jump year-over-year and a 7 percent jump since Q4 2016.
Fewer distressed sales is good for the market, but their disappearance this quarter us likely why overall condo sales lagged in Q1. There were 1,666 condos closed on this quarter, a 13 percent dip over this time last year but a 1.3 percent rebound since Q4 2016.
Sales of distressed, single-family homes were at 238 in Q1, down 38 percent from 384 closed sales at this time last year. The median sales price of those homes was $248,188, a 6 percent increase over last year.
The numbers show a positive trend is continuing in Miami as distressed sales are making up a smaller portion of overall sales. In 2016, Miami had the fifth-most distressed sales of any market, but the numbers have been dropping since, according to reports.
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