HOME SELLERS FORCED TO GET FLEXIBLE
WITH ASKING PRICES

via themortgagepoint.com—According to a new report from Redfin, nationwide, 6.4% of home sellers cut their asking prices during May, the highest share since November 2022.

By the numbers, the median asking price dropped roughly $3,000 to $416,623, the first such decline in six months. Additionally, for-sale supply is growing more stale: the typical home is on the market longer—a trend that also started in May—to a median of 46 days.

When put together, those metrices suggest that sale-price growth could soften in the coming months as persistently high mortgage rates turn off hungry homebuyers sitting on the sidelines. For now, the median-home sale price is up 4.3% year over year to another record high, though sale prices are a lagging indicator because they’re typically negotiated at least a month before a deal closes.

Buyers have found some relief, however. The typical U.S. homebuyer’s monthly housing payment dropped to $2,812, its lowest level in six weeks. Payments are declining because even though sale prices remain at all-time highs, mortgage rates have come down from their peak: The weekly average mortgage rate is 6.94%, the first time it has dipped below 7% since early April.

High costs are also dampening demand. Pending sales numbers are down 3.4% year-over-year, on par with declines over the last month while mortgage-purchase applications are sitting near their lowest level in six months.

Low inventory is another factor pushing down sales. Even though 7.8% more new listings hit the market than during the same period last year, listing growth has been losing momentum for the last few months, leaving buyers with fewer homes to choose from than there typically are in May.

“The market is slower than usual, but well-maintained properties listed for...READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are twenty-nine (29) active listings in the MS/VG market this week. More than 50% of the listings are over $1,000,000.00! Two of the listings are spec houses that have not yet been built. One is listed for a whopping $3.2 million! We do not use spec listings in calculating market values for this report. Inventory has hovered around 30+/- listings these last months. Increased inventory is better for Buyers, but prices remain strong for Sellers. We are truly in a unique market! Though the market appears to be slowing down a bit, prices remain strong in Miami Springs and Virginia Gardens and demand continues despite high interest rates and high prices. Please refer to the articles posted on our website.

There are fifteen (15) active listings over one million dollars. Thirteen (13) of the active listings have had a price reduction; two (2) this week. There is (1) pending sale this week. We have been transitioning to a more neutral market. However, the tight inventory and high demand for entry-level homes makes it difficult for Buyers. The high interest rates, however, 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. 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 have recently dipped just below 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 67 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; four (4) listings are priced between $600,000-$700,000; five (5) are priced between $700,000-$800,000; one (1) is priced between $800,000-$900,000; three (3) are priced between $900,000-$1,000,000; thirteen (13) between $1-2 million; and two (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 May 31, 2024 through June 7, 2024, there were reported 2 new listings, 1 closed sale, 2 pending sales, 2 active with contract, 2 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 June 7, 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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