There is something about me that many of you don't know.
One of the people that you probably dislike the most is something that I used to do for a living.
After I graduated college with a Business degree with a Finance major, I worked in the car business for eleven years.
I had many positions there, but the one you probably can't stand is a new car sales manager that is hired to close you on the purchase of your car.
My job was to get you to pay much more than you wanted to, AND at the same time, feel happy enough about it to give our dealership, your salesperson, and me perfect scores on a survey you were going to receive from the car manufacturer.
That job taught me how to negotiate exceptionally well and lower the stress level for the clients our team represents in real estate transactions.
Besides my time in the car business, I also worked for a New York hedge fund company.
Although I have much greater skills than a very high majority of real estate agents with negotiating and real estate analysis, I know that it is extremely important to invest a lot of money in getting better at both of those things.
For negotiations, our team has used Artificial Intelligence for nearly six years. So what does that actually mean?
Our AI tech helps us to negotiate in the best possible way with buyers, sellers, and other real estate agents.
It tells us what words to use, what words not to use, things that energize or drain the other party in negotiations.
It also tells us what to write or say if we are writing an email, meeting in person, or on a phone call.
One example is that it sometimes tells us that the other person can disengage with negotiations quickly, but it doesn't mean they aren't interested in pursuing the sale, but more that they negotiate that way.
The technology is absolutely AMAZING. If you don't believe me, I can pull up a report on you.
As I mentioned earlier, I worked for a hedge fund company for many years and also have a degree in Finance, but I spend a great deal of time and money on ways to get better at analyzing the market.
One of the things that I get is a weekly update on high-level data that you won't find on the news.
I figured that I should share it with you every week.
If you want to make sure you get the weekly updates, make sure to text me your name and email address.
My number is (305) 439-3031, or you can email me at [email protected].
By the way, if you are listening to this on a podcast, you can find the link to all the graphics on the podcast description.
So let's get into it! Here's the first article or podcast on this.
There is a great deal of talk in the press about drops in transaction volume when it comes to residential real estate.
It is important to recognize that the market is not a monolith. The vast majority of transactions are at lower price points. When we look at the overall percentage drop in sales volume, the action (or lack thereof) at lower price points obfuscates what is happening at higher price points.
Insight from the Data:
Isolating for price-per-square foot shows clearly that entire new market segments have emerged post-COVID.
The incoming wealth and talent migration is consuming new, expensive products.
And while we have an overall drop in transaction volume, these segments are still many times higher than they were pre-Covid.
The data shows that the higher up you go in price per square foot, the more we are outperforming pre-Covid realities.
Miami-Dade County Single Family Home Sales Volume, January 2023 through June 2023
All data is from the MLS.
- January 2023 through June 2023: Miami-Dade County sales of Single-Family Homes priced between $1,000 to $1,999 per Square Foot are up 279% versus the same time period in 2019 (our pre-Covid reality).
- January 2023 through June 2023: Sales volume past $2,000 per Square Foot is up 650% versus 2019.
Miami-Dade County Condo Sales Volume, January 2023 through June 2023
- January 2023 through June 2023: Miami-Dade County sales of condos priced between $1,000 to $1,999 per Square Foot are up 207% versus the same time period in 2019 (our pre-Covid reality).
- January 2023 through June 2023: Sales volume past $2,000 per Square Foot is up 400% versus 2019.
The Pattern Is Clear
Main Talking Points
1) The higher up you go in price per square foot, the more the market is outperforming pre-Covid realities.
2) Whole new market segments have been created at high prices per square foot, as South Florida continues to attract wealth and talent. Despite overall drops in transaction volume, market segments past $1K and $2K per square foot are outperforming pre-COVID levels by up to 9x.
3) The appetites of the wealth and talent migration are reflected in the high all-cash percentages at luxury price points. This is most pronounced in the condo market.
4) Data points quantifying the wealth and talent migration keep coming in. Thus far we had IRS data, census data, and license plate data. Now, we can add business application data to the list.
5) Life is reshaping around the capabilities of the internet. A subset of the population will continue to realize that high-tax states no longer serve their needs. The migration out of high-tax states has just begun.
6) Momentum is a real force and positive momentum in Florida keeps building. Miami is uniquely positioned to emerge as a capital of the new 21st century, post-internet world.
7) Miami is leading the nation when it comes to new business applications . In 2022, the city had 40.9 new business applications per 1,000 residents. This is yet a further indication that Miami is now a destination for those looking to work, create, and pursue the American dream.
Disclaimer: The information provided is from Real Estate Intelligence. It is for informational purposes only. It should not be considered as professional advice or a substitute for professional consultation. We make no warranties or representations regarding the accuracy, completeness, or reliability of the information. Your use of the information is at your own risk.
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