CONSUMERS REPORT: GOOD TIME TO SELL, BAD TIME TO BUY

via dsnews.com — According to the latest Home Purchase Sentiment Index (HPSI) published by Fannie Mae, the index decreased 1.2 points in May 2023 to an index level of 65.6 due to affordability constraints continue to color consumers’ perceptions of homebuying and home-selling conditions.

Of the six major components of the index, four decreased on a monthly basis, notably in the “good time to buy” and “good time to sell” categories in which survey respondents pushed down the good time to buy metric to near all-time lows.

However, the good time to sell component increased in May to its highest level since July 2022. And for the second month, a greater share of consumers indicated that they expect home prices to increase over the next year.

On a yearly basis, the full index is down 2.6 points. The index was benchmarked to 100 based on housing market activity in June 2010.

“As we near the end of the spring homebuying season, the latest HPSI results indicate that affordability hurdles, including high home prices and mortgage rates, remain top of mind for consumers, most of whom continue to tell us that it’s a bad time to buy a home but a good time to sell one,” said Mark Palim, Fannie Mae VP and Deputy Chief Economist. “Consumers also indicated that they don’t expect these affordability constraints to improve in the near future, with significant majorities thinking that both home prices and mortgage rates will either increase or remain the same over the next year.” READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are thirteen (13) active listings in the MS/VG market this week. Still very low inventory this week. I continue to expect that inventory will slowly increase, but that has not happened so far this year. We are truly in a unique market, anything can happen! Pending sales have experienced a slight increase this week. Values do 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 light inventory and high demand, the market is starting to transition back to a Sellers' market. Please refer to the articles posted on our website.

All of the active listings are priced at $549,000 or above. Two of the active listings are over one million dollars. One (1) of the active listings have had a price reduction; none this week. We had been transitioning to a more neutral market. However, the continued tight inventory and continued demand, despite higher mortgage rates, makes it difficult for first-time buyers. Expected interest rates increases in the future means fewer buyers. We still anticipate inventory increases at some point.

DEMAND IS STILL THERE!

Mortgage interest rates have remained between 6% and 7%. There are still serious qualified Buyers looking for the right property. Timing is everything! We are beginning to see multiple offers in some cases. The number of days properties are staying on the market is dropping, now averaging 51 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. Two (2) properties are priced between $500,000-$600,000; two (2) are priced between $600,000-$700,000; three (3) are between $700,000-$800,000; three (3) are between $800,000-$900,000; one (1) is priced between $900,000-$1,000,000; two (2) between $1-2 million; and none (0) are 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 June 2, 2023 through June 9, 2023, there were reported 5 new listings, 1 closed sale, 3 pending sales, 3 active with contract, 0 expired listings, 1 cancelled listing, 1 temp off market, 0 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, June 9, 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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