In the month of May, home price purchases were mixed with non-distressed prices up and short sales down according to Campbell Inside Mortgage Finance Housing Pulse survey. The average prices for distressed properties rose 1.7% and average price of short sales fell .7%. Most experts attribute the stabilization of non-distressed home prices to the shortage in inventory. Further, those homeowners who are experiencing financial woes are holding onto their homes until price move up accordingly. Mortgage service providers are processing foreclosures at a slower rate, which also controls the amount of distressed property on the market at a given time.
The Housing Pulse 3 month moving average, using the Distressed Property Index, showed that the share of distressed properties in the housing market was at 46.1%, in May, which is the 27th consecutive month above 40%. The shortage of inventory of distressed homes is excellent news for home sellers. Since distressed properties usually drive a comparative market analysis down, fewer distressed homes on the market mean your home will sell for higher amounts. In Miami Beach in particular, the amount of inventory of distressed properties is down. Further, the demand for distressed properties in Miami Beach is up, which creates a bidding war between the interested buyers. So, even for the properties on the market that are distressed, their prices are much higher since buyers are pushing prices up by bidding on these properties. The luxury real estate market has remained relatively stable if not improved by these increases in prices in 2011. Prices are still down from the boom, which makes it still a very good time to buy, but one must act fast. For more information on purchasing property in Miami Beach, please contact us today!