COST OF LIVING, MORTGAGE RATES KEEPING MANY HOMEBUYERS ‘ON THE SIDELINES’

via themreport.com — For the second consecutive week, Freddie Mac’s Primary Mortgage Market Survey (PMMS) has shown a decline in the 30-year fixed-rate mortgage (FRM), as the average FRM fell 26 basis points week-over-week from 7.76% to 7.50% for the week ending November 9. A year ago at this time, the 30-year FRM averaged 7.08%.

Markets have had a week or so to adjust the Fed’s latest pause in rate hikes or reductions, and again has opted to forgo a change in the nominal interest rate at the conclusion of their two-day meeting on November 1.

“As Treasury yields decline, the 30-year fixed-rate mortgage dropped a quarter of a percent, the largest one-week decrease since last November,” said Sam Khater, Freddie Mac’s Chief Economist. “Incoming data show that household debt continues to rise, primarily due to mortgage, credit card and student loan balances. Many consumers are feeling strained by the high cost of living, so unless mortgage rates decrease significantly, the housing market will remain stagnant.”

Also this week, the 15-year FRM averaged 6.81%, down from last week when it averaged 7.03%. A year ago at this time, the 15-year FRM averaged 6.38%.

“The option for an additional future rate hike is still on the table as …READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are fifteen (15) active listings in the MS/VG market this week. Inventory is has remained steady over the last two weeks. The market remains unpredictable with inventory fluctuating from week to week. One thing is for sure—values remain strong in Miami Springs and Virginia Gardens, despite interest rate increases. There are still many qualified Buyers out there, and with tighter inventory and continued high demand, the market is transitioning back to a Sellers' market. Please refer to the articles posted on our website.

Almost 50% of the active listings are over one million dollars, with one listing even priced for over $2,000,000.00!! Six (6) of the active listings have had a price reduction; two this week. There are zero (0) new pending sales. The continued tight inventory and demand, despite higher mortgage rates, gives Sellers an advantage and makes it difficult for Buyers. Although, things may start to slow down! Expected interest rates increases in the future can mean fewer buyers. We still anticipate more inventory increases.

DEMAND IS STILL THERE!

Mortgage interest rates have continued to be between 7.5%-8% this past month. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are becoming more common again. The number of days properties are staying on the market is averaging 44 days. The demand remains high for properties under $500,000. There are no listings under $500,000. The low inventory at entry-level, higher interest rates, and homeowner insurance costs make it difficult for many first-time Buyers. No properties are priced between $400,000-$500,000; none (0) are priced between $500,000-$600,000; one (1) is priced between $600,000-$700,000; two (2) are priced between $700,000-$800,000; four (4) are priced between $800,000-$900,000; one (1) is priced between $900,000-$1,000,000; six (6) 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 November 3, 2023 through November 10, 2023, there were reported 1 new listing, 0 closed sales, 0 pending sales, 2 active with contract, 0 expired listings, 2 cancelled listings, 0 temp off market, 2 price reductions, and 0 price increases.

HOW DOES YOUR HOUSE COMPARE?

The table below shows the current status of the Miami Springs/VG real estate market as of Friday, November 10, 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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