EWM Realty International‘s President Ron Shuffield spoke with the Real Deal Miami mentioning that it might be time for Miami luxury real estate sellers to drop their prices.
Ron Shuffield told The Real Deal his firm has been keeping a closer eye on the luxury market since August 2015, when inventory in the $1 million and up price bracket began piling up while fewer sales were made. A bitter Presidential race and Hurricane Matthew caused October to be the worst month for luxury home sales since 2011 with only 94 houses and condos priced at over 1 million dollars sold.
The luxury real estate market is has been dealing with a large amount of inventory. ” A healthy market can contend with up to 18 months of supply“, said EWM’s President Ron Shuffield but Miami is currently dealing with nearly three years worth of inventory. “When you have inventory growing to that level and sales falling off, the major motivator to buyers is going to be an adjustment in price,” said Ron Shuffield.
Many sellers in Miami have taken the hint. By the beginning of July, 37% of the Miami’s luxury listings had their asking prices dropped by an average of 14%, according to EWM’s data. Shuffield said there’s still plenty of room for that number to grow before the the extra inventory is reduced to a more manageable level.
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