Experts look to 2025 as a year of residential real estate growth in Miami-Dade as the market begins to open back up. “We’re seeing a sharp increase in the amount of inventory,” says Berkshire Hathaway President Ron Shuffield. “We have increased inventory, which is good for buyers and going to give them a lot more selection. This will keep prices in check, because we have more inventory. Our monthly supply is our number-one metric.” According to Mr. Shuffield, Miami’s real estate market is in better standing than a year ago as supply begins to increase and prices begin to stabilize, opening up the market as more people look to sell, which opens up opportunities for those looking to buy. A metric of six to nine months of supply is needed to have a balanced market. According to Mr. Shuffield, when that metric falls below six months, prices begin to rise as more buyers compete for real estate than there are sellers giving up space. “During covid, we had one to three months of supply, and we sold double-digit increases in value during all that period,” he said. While growth of home prices has slowed, Mr. Shuffield says they’ve rather “plateaued at a higher level” than they were at the beginning of the pandemic. This growth, however, has come with more choice and supply than last year. At year’s end, 5,041 single-family homes were on the market, up 26% from December 2023, when only 3,991 were on the market. Over the last three months of 2024, as inventory rose 6%, sales fell by 9.1%. Condominium units were in a similar position, with inventory reaching 10,425 available units, a 48% increase from December 2023, when only 6,987 were available. In the last three months of 2024, sales for condo units fell 24%, even with the increased supply. According to Mr. Shuffield, transactions overall decreased in the last quarter compared to the end of 2023 – 1,995 transactions in the last three months, compared to 2,607 in the same time a year ago. Mr. Shuffield attributes this to the partially changing rules and regulations regarding condominium associations throughout South Florida, which have begun to move people away from wanting to live in these buildings. “That may have been part of the reason those numbers are falling,” he said. The median price for condominiums has fallen, from $449,000 in March 2024 to $415,000 in November, a 7.6% drop. According to Mr. Shuffield, at the present pace of sales the market has 18 months’ of supply for condominiums, which is evidently twice the amount needed to maintain an optimum level, as an excess would drive prices down and force sellers to operate at a loss. The median price of single-family homes has remained stronger – prices peaked at $670,000 in July but decreased to $660,000 in November. With eight months of supply available, Mr. Shuffield said, this is equilibrium for the market. “The thing about condos … only 35% to 40% of the people that own a condo actually live in the condo,” he said. “Another 60% to 65% are investors or leasing those, so you have a lot of rental apartments in condominium buildings all through the county. So, a lot of these decisions are financial decisions rather than people leaving town or anything like that, but it does reflect on value.” “I tell everyone to be in the game. If you look back to the median price of a single-family home in Dade County over the last 10 years, you’ll see the value goes up and down, but the general trend is that values go up. If you look at the median price of a single-family home in Miami in January 2011 … the median price of a single-family home was $150,000. Today, that’s now $650,000, so that’s four times. If you have not been in the game, you have missed out on that appreciation. It’s a long-term decision. Especially in your personal investments, you stay in there for a long time and the values show some kind of appreciation.” Related Posts:Coconut Grove home prices rise 21% in a yearTight inventory, high interest squeeze home salesHigher Fed interest rates push home prices upCoconut Grove residential market comes down to earthInterest rate drop pivotal to residential realty healthThe post Residential real estate gains seen as inventory flows back appeared first on Miami Today.