HOMEBUYERS NATIONWIDE GAINING MORE PURCHASE POWER

via themreport.com—According to new Redfin report, a homebuyer on a $3,000 monthly budget has gained nearly $40,000 in purchasing power since mortgage rates peaked this past fall. Redfin estimates that a $3,000 monthly budget will buy a $453,000 home with a 6.7% mortgage rate, roughly this week's average. That total is compared to the $416,000 home the same buyer could have purchased in October 2023 with an average rate of 7.8%.

Analyzing affordability from another perspective, the monthly mortgage payment on the typical U.S. home, which currently costs roughly $363,000, is $2,545 with a 6.7% rate. The monthly payment was nearly $200 higher—$2,713—when rates were at 7.8%.

Recently, homebuyers have found some relief in as mortgage rates have slipped from their two-decade high hit this past October. Weekly average rates dipped into the 6.5% range by the end of 2023, and ticked up slightly to 6.7% this week. While that’s double the record-low 3% rates buyers experienced during the pandemic, Redfin agents report that buyers have come to terms with a 30-year, fixed-rate mortgage (FRM) in the 6% range—but they were more hesitant when they were approaching the 8% mark.

“Bidding wars are picking up as mortgage rates decline and inventory stays low. I’ve seen a few homes get 15-plus offers recently, and one got more than 30,” said Shoshana Godwin, a Redfin Premier agent in Seattle. “Late last year, many listings sat on the market as buyers sat on the sidelines, hoping for rates to drop. Now, buyers are snapping up homes because…READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

This week there are thirty (30) active listings in the MS/VG market this week. Inventory increased over 10% last week. More increases in inventory in the months ahead?? We think so. We are truly in a unique market. Even with high interest rates and high prices, there is no shortage of buyers! Property values in Miami Springs and Virginia Gardens remain strong. Please refer to the articles posted on our website.

There are twelve (12) active listings over one million dollars. One listing is priced for over $2,000,000! Nine (9) of the active listings have had a price reduction; two (2) this week. There are two (2) pending sales this week. We have been transitioning to a more neutral market. However, the continued tight inventory and high demand for entry-level homes, despite higher mortgage interest rates, gives Sellers an advantage and makes it difficult for Buyers. The high interest rates also create a difficult situation for Sellers because the Sellers likely have a mortgage with a much lower interest rate. Where do they go if they decide to sell? Interest rates aside, we continue to anticipate more inventory increases.

DEMAND IS STILL THERE!

Mortgage interest rates decreased recently and are hovering under 7%. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are more common again. The number of days properties are staying on the market is averaging 26 days. The demand remains high for properties under $500,000. There are no properties listed under $500,000. The low inventory at entry-level, higher interest rates, and homeowner insurance costs make it difficult for many first-time Buyers. There is one (1) property priced between $500,000-$600,000; six (6) are priced between $600,000-$700,000; six (6) 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; eleven (11) 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 January 26, 2024 through February 2, 2024, there were reported 4 new listings, 3 closed sales, 0 pending sales, 3 active with contract, 0 expired listings, 0 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, February 2, 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:  charlie@leonardrealestategroup.com

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