HOUSING INVENTORY HITS FIVE-YEAR HIGH

via themortgagepoint.com—According to a new report from Redfin, homebuyers have the most options since 2020, but few are biting because rising housing costs have made monthly payments tough to swallow. Redfin found that pending home sales in January fell to the lowest level on record aside from the start of the pandemic. Pending home sales dropped 4.2% month-over-month, the largest decline on a seasonally adjusted basis reported since August 2023—and 6.3% year-over-year.

Active listings of homes for sale rose to the highest level since early in the pandemic. They climbed 0.3% month-over-month on a seasonally adjusted basis in January and 12.9% year-over-year. New listings hit the highest level since July 2022, increasing 1.9% month-over-month, and 4.7% year-over-year.

Redfin cited a number of reasons for this increase in the nation’s housing inventory, including:

The mortgage rate lock-in effect is fading: A number of homeowners who scored low mortgage rates during the pandemic have been staying put because moving would mean taking on a higher rate. But most people can’t stay put forever.

Homes are lingering on the market: The typical home that sold in January was on the market for 56 days. That’s a week longer than a year earlier, marking the longest period for any January since 2020.

Demand is slowing: Listings are also piling up because there are fewer people buying homes. Existing home sales fell 1.7% in January to a seasonally adjusted annual rate of 4.3 million, the largest monthly decline since October 2023.

Redfin cited a number of reasons for this dip in housing sales, including:

Mortgage rates hit an eight-month high: As the third quarter brought with it a drop in mortgage rates, 2024 closed with the 30-year fixed-rate mortgage rate edging toward the 7% mark. The average interest rate on a 30-year-fixed mortgage was 6.96% in January, up from 6.72% a month earlier and the highest level since May. Plus, the median home sale price rose.…READ MORE

The Current Miami Springs Market

DEMAND IS STILL THERE DESPITE HIGHER INTEREST RATES

Inventory increased by over 15% this week! There are now twenty-seven (27) active listings in the Miami Springs/Virginia Gardens market. Inventory hovered at approximately 30+/- listings the last quarter of 2024 and has been comparable in early 2025, despite week-to-week fluctuations.

We are seeing a number of price decreases on active listings, which is good for buyers, but sold prices remain strong for sellers. Regardless, there are still serious qualified buyers looking for the right property and multiple offers still happen in some cases. We are truly in a unique market where timing is everything!

We had been transitioning to a more neutral market. However, the tight inventory and high demand for entry-level homes makes it difficult for some buyers. 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. Properties are staying on the market for longer but some houses still quickly sell. Any additional interest rate increases in the future can mean fewer Buyers. Interest rates aside, we continue to anticipate more inventory increases.

Mortgage interest rates are just under 7%. Rates are expected to fluctuate between 6-7% this year. Despite high interest rates, there is still demand! The number of days properties are staying on the market is averaging 58 days. Six (6) of the active listings had a price reduction—four (4) this week. There are no new pending sales this week. The limited options for entry level homes, high interest rates and homeowner insurance costs make it difficult for many first-time buyers. There are no properties listed under $500,000. There are no listings priced between $500,000-$600,000; four (4) listings are priced between $600,000-$700,000; five (5) are priced between $700,000-$800,000; eight (8) are priced between $800,000-$900,000; one (1) is priced between $900,000-$1,000,000; eight (8) between $1-2 million; and one (1) priced for over $2 million.

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

During the period of February 7, 2025 through February 14, 2025, there were reported 4 new listings, 2 closed sales, 2 pending sales, 1 active with contract, 0 expired listings, 0 cancelled listings, 0 temp off market, 4 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 February 14, 2025. 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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