HOUSING INVENTORY CRUNCH ACCELERATES

IN JULY

via themreport.com — According to Realtor.com’s July 2023 Housing Report, the U.S. housing supply grew in July, as active listing growth slowed for the fourth month in a row and fell below year ago levels (-6.4%) for the first time since April 2022. While buyers had fewer for-sale options, with active inventory 49.2% below typical pre-pandemic July levels, the market tipped slightly in their favor as the median list price declined year-over-year (-0.9% to $440,000) for the second month in a row.

"While a second monthly year-over-year decline in list prices bodes well for potential buyers, the ongoing lack of homes available for sale continues to prop up home prices and will keep declines relatively modest for the remainder of the year," said Danielle Hale, Chief Economist for Realtor.com. "Interest rate hikes continue to further cut into buyers' purchasing power, although they appear to have adapted to the higher mortgage rate environment faster than sellers, many of whom are still on the sidelines, locked in to lower interest rates and unwilling to cash in their home's equity to purchase another. That's putting a damper on home sales, which will likely post their smallest annual tally this year in over a decade."

Growth in the U.S. inventory of active listings slowed for four months in a row, and in July, declined compared to the previous year for the first time since early 2022, thus resulting in today's buyers having significantly fewer options to choose compared to just one year ago. Realtor.com reports that on a typical day in July, there were 45,000 fewer homes available to buy.

"Housing affordability isn't likely to improve anytime soon, so it's not surprising to see that Americans are on the move and increasingly searching for homes in more affordable areas of the country where they can stretch their housing dollars further," said Jiayi Xu, Realtor.com Economist. "Sellers are much more likely to see interest from out-of-towners than in years past, and from where that interest is coming might be the most surprising."…READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are twenty (20) active listings in the MS/VG market this week. An increase in inventory from last week. We are truly in a unique market with lots of unpredictability. More inventory increases in the months ahead? Anything can happen! No pending sales have remained the same. Values remain strong in Miami Springs and Virginia Gardens. Multiple properties listed for over a million dollars are now pending sales. Despite interest rate increases, there are still many qualified Buyers out there. With tight inventory and high demand, the market is starting to transition back to a Sellers' market. Please refer to the articles posted on our website.

Over half of the active listings are over one million dollars. Two are listed for more than $2,000,000!! Four (4) of the active listings have had a price reduction; one this week. We had been transitioning to a more neutral market. However, 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 anticipate more inventory increases at some point.

DEMAND IS STILL THERE!

Mortgage interest rates have increased to just above 7% 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 58 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 premiums make it difficult for many first-time Buyers. No properties are priced between $400,000-$500,000. One (1) is priced between $500,000-$600,000; five (5) are priced between $600,000-$700,000; one (1) is between $700,000-$800,000; two (2) are between $800,000-$900,000; none (0) are priced between $900,000-$1,000,000; eight (8) between $1-2 million; and three (3) 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 July 28, 2023 through August 4, 2023, there were reported 3 new listings, 5 closed sales, 0 pending sales, 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 Friday, August 4, 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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