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Miami Drill Down: Picking Up the Scraps of the Financial Crisis

This week, real estate appraiser, Curbed graph guru, blogger, newsletter writer, and columnist Jonathan Miller looks at the real estate scraps of the last financial crisis.

As we make our way through the second quarter (more than halfway!), I took a look at some trends extracted from the first quarter reports we prepare for Douglas Elliman. I went all out and created a four charter that addresses a number of issues born out of the financial crisis that still touch the current market.

What is the financial status of the sale? The amount of non-distressed sales in the market have surged, rising from a market share low of 37.1% of all sales in 2010, to a dominating 78.3% in 2015.

What Was Used To Purchase A Home in Miami? Despite the flip flop of distressed and non-distressed to the better, access to credit remains historically tight. In fact, the use of financing for all condo and single family sales has fallen by 4.2% to 39.9% over the past 5 years.

What Type Of Distressed Inventory Is Available? Short sales and foreclosures comprise the distressed sale market in our analysis. The decline in distressed market activity has been largely the result of declining short sale volume. Foreclosures have shown volatility but current levels are about the same as they were 3 years ago.

What Do Supply & Demand Look Like? Seasonality aside, sales volume has remained remarkably stable and strong over the past several years. Current sales levels are about 70% higher than they were in 2006. Listing inventory has been expanding since it bottomed in 2013. Overall inventory, comprised of falling distressed inventory and rising non-distressed inventory, has been expanding as a result of rising housing prices that are pulling property owners into the market.
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