Fried On Business just started its 8th year on the air. It’s hard to believe. Time certainly does fly.
So on the most recent episode of the show, we had a bit of a celebration with an old friend, Ron Shuffield of Esslinger-Wooten-Maxwell Realtors® (EWM).
Shuffield and I have actually made money together, so I guess that makes him one of the best kinds of friends. He’s also a residential housing expert, having been part-owner of EWM since 1984.
In 2003, he sold EWM to Berkshire Hathaway Home Services of America. Yes, that Berkshire Hathaway.
On the subject of Miami homes for sale, Shuffield says it’s a tale of two markets. The change started in August 2015. Properties with more modest pricing are still selling strong. But beyond $1 million, prices have begun to stabilize or fall, and inventory is increasing.
Inventory in that range is up 50%, Shuffield said, while sales have decreased 15% to 25%.
“We are now beginning to see some nice price reductions, especially at the luxury end. Our sellers have recognized that if they want to be competitive with the sharp increase in inventory that we’ve had, that they need to have attractive prices to our buyers,” he said.
It might be hard to believe, but 53% of single-family homes sold in Miami-Dade County are still priced under $300,000, Shuffield said. Some 70% of condos are under that threshold.
About half of all sales are for cash, he said, down from 65% just a year ago. A large percentage of the luxury buyers, $1 million-plus, are from overseas. They represented 42% of luxury sales in Miami-Dade two years ago, he said. Now it’s about 36%.
Areas along Biscayne Boulevard are re-blossoming into new communities, Shuffield said, but price is the real distinction in the market. Inventory under the $500,000 mark is down to 1.5 months of supply, he said. Six to nine months of supply is optimal.
Shuffield said EWM is searching for golf courses and existing buildings in situations where entire blocks can be repositioned for new development. Many people want to locate on the eastern edges of Miami-Dade and Broward counties to be closer to work and amenities.
“I think that our pent-up buyers today are probably larger than they’ve ever been. We have more pent-up buyers watching on the sidelines. Everybody wants to own a stake in South Florida,” he said.
They’re watching as prices fall, Shuffield said. Since the beginning of the year, 37% of the MLS listings over $1 million have fallen in price by 10.5% on average.
Many properties are still 25% below the peak of the last cycle, he added.
We talked about a lot more, including:
– More inventory numbers for Miami-Dade and Broward counties.
– The flow of new residents into Florida.
– Neighborhoods that still offer lifestyle and investment value.
– The adjustment of the market to a normal level of activity.
To learn more about Shuffield and EWM, visit ewm.com.
Click here to listen to the full interview with Ron Shuffield, President and CEO of Esslinger-Wooten-Maxwell Realtors® (EWM).
