This spring homebuying season could be a difficult one for home sellers in Miami, according to a recent analysis from Zillow.
According to the company’s April Real Estate Market Report, the inventory of homes in Miami has risen across the board – especially in higher price points. Lower- and middle-price tier inventory has risen 10.3 and 16.6 percent in the last year, while top-tier inventory has rise 21.9 percent. Altogether, inventory is up 18 percent, and as we’ve reported in the past, that deluge of inventory may negatively impact sales in 2016.
Inventory Woes Threaten Housing
Miami’s inventory woes, though, are unique among the U.S. landscape. Nationwide, entry-level inventory is down nearly 8 percent year-over-year, while overall inventory is down 3.4 percent.
Svenja Gudell, Zillow’s chief economist, said the supply and demand mismatch will create struggles for prospective buyers.
“New construction has been sluggish over the past year; we’re building about half as many homes as we should be in a normal market,” Gudell said. “There still aren’t enough homes on the market to keep up with the high demand from every type of homebuyer. In many markets, those looking to buy a home in the bottom or middle of the market will need to be prepared for bidding wars and homes selling for over the asking price. This summer’s selling season’s borders will most likely be blurred again as many buyers are left without homes and will need to keep searching.”
Our chart below spells out the inventory issues in the nation’s largest housing markets:
| Metro Area | Bottom Tier Inventory Change | Middle Tier Inventory Change | Top Tier Inventory Change | Total Inventory Change |
|---|---|---|---|---|
| Atlanta | -19.7% | -20.7% | -3.8% | -12.5% |
| Boston | -22.3% | -14% | 14.4% | -6.4% |
| Chicago | -15.1% | -16.7% | -1.8% | -9.8% |
| Dallas | -32.1% | -35.1% | -11.9% | -21% |
| Los Angeles | -19.4% | -10.8% | -1% | -8% |
| Miami | 10.3% | 16.6% | 21.9% | 18% |
| New York | -10.8% | -4.1% | 4.9% | -3.8% |
| Philadelphia | 2.3% | -8.7% | 1% | -2.7% |
| Phoenix | -20.2% | -6.6% | -4.1% | -8% |
| San Francisco | -14.9% | 0.1% | 6.1% | -2.1% |
| Seattle | -28.5% | -20.9% | -15.6% | -21.1% |