Rendering of an online report by the real estate company Trulia, houses in the Miami area stay on the market longer as compared to other big cities around the nation.
Price escalation and a surplus of new roster are pointed as the probable reasons, said Ralph McLaughlin, Trulia chief economist.
McLaughlin said, “Miami is in this weird stalemate situation where sellers probably don’t want to reduce the price of their units because they don’t want to lose money, but middle-class buyers aren’t able to afford them. So what we’ll see is homes sitting on the market longer until either sellers decide to lower their sales price or the economy continues to improve and buyers can start to afford them.”
The company discovered, around 65 % of Miami-Dade County homes registered on Trulia’s webpage last February remained on the market two months later.
Out of the 100 largest housing markets the company checked, only about 9 cities listed a greater percentage of homes listing on the market after two months. These cities include Albany, Knoxville, Pennsylvania, Pittsburgh, New York, Birmingham, Alabama and Tennessee.
The analysis glimpsed into both resale and new sales of single family homes, town houses and condominiums.
Miami was one of the biggest year-over-year increments in the percentage of homes remaining on the market. Fifty six percent of homes listed in April 2014, on Trulia had been put up on the market for two months. Only Atlanta and Austin garnered a bigger annual increase.
According to a Census estimate, an unusual blend of factors is creating a harsh market for both buyers and sellers alike. Miami is one of the least affordable housing markets in the U.S. at a time when about 18,000 new units are under construction.
“This combination of new supply and waning demand because of affordability would lead to a situation where homes stay on the market longer,” McLaughlin concluded.