According to Miami-Dade County housing data provided by Mike Pappas, president and CEO of The Keyes Co., the number of single-family homes on the market for less than $400,000 in Miami-Dade dropped by 57% between September 2014 and September 2016, moving from 5,744 to 2,491.The average number of days that a house is on the market at this price point has also increased from 77 in 2014 to 104 in 2016. Pappas attributes this change to a shift in the local housing market.
“Instead of banks selling to investors we have real sellers and real buyers, and there is more emotion involved,” Mr. Pappas says.
Most of the new single-family homes under construction are located in the Homestead/South Dade area, where prices are lower and land is in greater supply.“Out west, we cannot afford to sell homes for less than $460,000,” says Sergio Pino, president and founder of Miami-based Century Homebuilders Group. “There are no large tracts available anymore unless you go to South Dade – and there is no employment base to support the people who live there.”