REPORT: ANNUAL U.S. HOME PRICE GROWTH SLOWS

via themortgagepoint.com—In June, U.S. home prices registered a 4.7% year-over-year increase, continuing the trend of decelerating growth, according to the CoreLogic Home Price Index (HPI) and HPI Forecast released covering the month of June. This marks the second consecutive month where annual growth has stayed below 5%, a significant drop from the pre-pandemic norms.

CoreLogic, a global property information, analytics, and data-enabled solutions provider, indicated that the current cooling trend in the housing market is likely to persist. By summer 2025, home price growth is expected to slow to 2.3% year-over-year, less than half the current rate.

“High mortgage rates continue to compress affordability and dissuade potential homebuyers, essentially freezing market activity at the end of the spring home-buying season,” said Dr. Selma Hepp, CoreLogic’s Chief Economist. “The 0.3% gain in prices from the month before was less than half the increase seen between May and June prior to the pandemic.”

Despite the overall slowdown, no states reported annual declines in home prices for June. South Dakota led the nation with a 10% year-over-year increase, the only state to post double-digit growth. Following South Dakota were New Jersey (9.3%), Rhode Island (9.2%), Connecticut (8.5%), and New Hampshire (8.2%).

Among the largest U.S. metros, Miami saw the highest year-over-year gain at 10%, surpassing San Diego and Las Vegas, which both posted 7.5% increases. Chicago followed closely with a 7.2% increase.

The sustained decline in the pace of home price appreciation is largely attributed to elevated mortgage rates. Although a rate cut by the Federal Reserve is anticipated in September, current high interest rates continue to...READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

Big jump in inventory this week! There are now forty-one (41) active listings in the MS/VG market. Increased inventory is better for Buyers, but prices remain strong for Sellers. Almost 50% of the active listings are over $1,000,000.00. Two of the listings are spec houses that have not yet been built— their list prices range from $2.5 million to a whopping $3.2 million! We do not use spec listings in calculating market values for this report. The market appears to be slowing down a bit, but demand in Miami Springs and Virginia Gardens continues despite high interest rates and high prices. We are truly in a unique market! Will inventory continue to increase in the months ahead? We think so! Please refer to the articles posted on our website for more insight.

There are eighteen (18) active listings over one million dollars. Fifteen (15) of the active listings have had a price reduction; one (1) this week. There is one (1) new pending sale this week. We have been transitioning to a more neutral market. However, the tight inventory and high demand for entry-level homes still makes it difficult for Buyers. The high interest rates also create a difficult situation for Sellers that have a mortgage with a low interest rate. Where do they go if they decide to sell? Sales activity has slowed down a bit and properties are staying on the market for longer. Any additional interest rate increases in the future can mean fewer Buyers. Interest rates aside, we continue to anticipate more inventory increases.

DEMAND IS STILL THERE!

Mortgage interest rates are around 6.5%. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers still happen in some cases. The number of days properties are staying on the market is averaging 55 days. There are no properties listed under $500,000. The limited options for entry-level homes, higher interest rates, and homeowner insurance costs make it difficult for first-time Buyers. There is one (1) listing priced between $500,000-$600,000; five (5) listings are priced between $600,000-$700,000; seven (7) are priced between $700,000-$800,000; five (5) are priced between $800,000-$900,000; five (5) are priced between $900,000-$1,000,000; fifteen (15) between $1-2 million; one (1) is priced for over $2 million and (2) spec houses listed for over $2.5 million.

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

During the period of August 2, 2024 through August 9, 2024, there were reported 3 new listings, 2 closed sales, 1 pending sale, 0 active with contract, 0 expired listings, 0 cancelled listings, 0 temp off market, 1 price reduction, 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 August 9, 2024. 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:  [email protected]

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