SOUTH FLORIDA HOME SALES FIZZLE DURING FIRST QUARTER. WHY DO PRICES KEEP RISING?

via miamiherald.com — Existing home sales in South Florida plunged during the first three months of the year, however, the steady stream of outside buyers pushed median prices of houses and condominiums higher, making them still unaffordable for many local residents.

Miami-Dade County recorded 5,607 sales of single-family homes during the first quarter, a 40% drop from 9,391 closings during the same period last year. In Broward, quarterly sales dropped 27%, to 6,517 single-family house purchases from 8,949 a year ago. In March, single-family median home prices rose in Miami-Dade and Broward counties, according to the housing market update released Friday by the Miami Association of Realtors. Miami-Dade’s median price was $570,000 for houses, up from $540,000 a year ago. Single-family house prices have risen steadily since December, approaching Miami-Dade’s historic high of $579,000 posted last summer. Broward’s median price tag last month was $565,000, a jump from $545,000 in March 2022.

Although the South Florida housing market has begun slowing after its frenetic peak pandemic pace, most budget-conscious and first-time homebuyers remain sidelined because they still can’t afford to buy homes. Jason Damm, assistant professor of professional practice in finance at the University of Miami, said the influx of remote workers and corporate expansions continues to cushion the regional housing market. “At the beginning of 2022, when rates were still low and we were coming out of the pandemic, the market got a little crazy and it overstepped. It became too much of a sellers’ market. We saw that with the drop in inventory to one of the lowest levels in five to 10 years. It became a hot market. We experienced rapid price growth,” Damm said.… READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are twenty-two (22) active listings in the MS/VG market this week. Inventory has averaged approximately 25 listings over the last month or so. Though it took a dip since last week, I do expect increases in the months ahead. But in this market, anything is possible. Pending sales are stable. Though values remain strong in Miami Springs and Virginia Gardens, we have seen many list-price decreases. Despite interest rate increases, there are still many qualified Buyers out there, BUT as rates increase, there WILL be fewer Buyers! The market is starting to transition, and Sellers are no longer in the driver's seat. Please refer to the articles posted on our website.

Twenty-two (22) of the active listings are priced at $525,000 or above. Three (3) properties are listed between 1-2 million dollars. One (1) is listed for OVER 2 million dollars! Seven (7) of the active listings have had price reductions; one this week. We have been transitioning to a more neutral market. However, the continued light inventory and high demand, despite higher mortgage rates, make it difficult for first-time buyers. Expected interest rates increases in the future means fewer buyers and anticipated inventory increases.

DEMAND IS SLOWING!

Mortgage interest rates have been between 6% and 7% this month. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are much less common. Days properties are staying on the market has increased since the beginning of 2023 (Average DOM = 67).

The demand remains high for properties under $500,000. There are no listings under $500,000. The low inventory at entry-level and higher interest rates make it difficult for most first-time Buyers. No properties are priced between $400,000-$500,000. Four (4) properties are priced between $500,000-$600,000; seven (7) are priced between $600,000-$700,000; two (2) are between $700,000-$800,000; two (2) between $800,000-$900,000; three (3) between $900,000-$1,000,000; three (3) between $1-2 million; and one (1) is listed for over $2 million.

SELLERS, THIS IS THE MOMENT TO PRICE IT RIGHT!
Increasing Inventory + Increasing Interest Rates = Less Demand.

During the period of April 14, 2023 through April 21, 2023, there were reported 1 new listing, 4 closed sales, 3 pending sales, 1 active with contract, 0 expired listings, 0 cancelled listings, 2 temp off market, 1 price reduction, and 1 price increase.

HOW DOES YOUR HOUSE COMPARE?

The table below shows the current status of the Miami Springs/VG real estate market as of Friday, April 21, 2023. All closed sales are within the last 90 days.

*Disclaimer: The data relating to real estate displayed on this website and the chart above comes from the Miami Board of Realtors MLS. All listing information is deemed reliable but not guaranteed and can be independently verified.

 A complete list of all the properties for sale in Miami Springs or any other area of 

Miami-Dade County can be sent to you on regular basis. 

Request it at:  charlie@leonardrealestategroup.com

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