The Miami real estate market continues to be very HOT, particularly for home Sellers. Inventory is at an all-time low. This condition is driving prices higher, but in many cases appraisers don't agree and properties are not appraising for the sale price preventing the sale from closing.
This is not quite how this is supposed to work. Yes, lenders have the right to establish a fair market value for the property they will hold as collateral, however, market value should be set by supply and demand and the value Buyers' are willing to pay and can afford, not just on a four month sales trend.
The lack of properties appraising or lack of financing for certain properties may be the reason why more Buyers are choosing to pay cash and bypassing the lender all together. Note; developers in South Florida have been quite successful selling out hundreds of units to cash Buyers.
Markets change all the time. Home prices are recovering from a down market, but prices are not at the level they need to be to strike a natural balance between supply and demand. Unfortunately, as long as appraisal values continue to idle on the conservative side, Sellers, having to sell, will have to price their homes according to what the appraisers believes home values should be and not what the Buyer may be willing to pay.