EXISTING-HOME SALES FALL IN FACE OF AFFORDABILITY GAP

via themortgagepoint.com—According to the National Association of Realtors (NAR), existing-home sales retreated in January 2025, slipping in three major U.S. regions, while holding steady in the Midwest. Year-over-year, sales rose in three regions and were unchanged in the South.

Total existing-home sales–defined as completed transactions that include single-family homes, townhomes, condominiums, and co-ops–descended 4.9% from December to a seasonally adjusted annual rate of 4.08 million in January. Year-over-year, sales improved 2.0% (up from four million in January 2024).

“Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve,” said NAR Chief Economist Lawrence Yun. “When combined with elevated home prices, housing affordability remains a major challenge.”

Inventory Up

Total housing inventory registered at the end of January was 1.18 million units, up 3.5% from December and 16.8% from one year ago (1.01 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in December and three total months in January 2024.

“More housing supply allows strongly qualified buyers to enter the market,” Yun said. “But for many consumers, both increased inventory and lower mortgage rates are necessary for them to purchase a different home or become first-time homeowners.”

The median existing-home price for all housing types in January was $396,900, up 4.8% from one year ago ($378,600). All four U.S. regions registered price increases.

While housing inventory may be up, recent concerns over tariffs, elevated mortgage rates, and high housing costs have forced builder confidence downward, according to the National Association of Home Builders (NAHB). Builder confidence in the market for newly built single-family homes was 42 in February, down five points from January and the lowest level in five months, according to the most recent NAHB/Wells Fargo Housing Market Index (HMI).

“While builders hold out hope for pro-development policies, particularly for regulatory reform, policy uncertainty and cost factors created a reset for 2025 expectations in…READ MORE

The Current Miami Springs Market

DEMAND IS STILL THERE DESPITE HIGHER INTEREST RATES

Inventory increased again! There are thirty-two (32) active listings in the Miami Springs/Virginia Gardens market this week. Approximately 30% of the active listings are over $1,000,000! Inventory hovered at approximately 30+/- listings the last quarter of 2024 and has been comparable in early 2025, despite week-to-week fluctuations.

Increased inventory 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 seeing fewer price decreases on active listings. 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 57 days. Eleven (11) of the active listings had a price reduction—six (6) this week. There are two (2) 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; six (6) 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; two (2) are priced between $900,000-$1,000,000; ten (10) between $1-2 million; and one (1) priced for over $2 million.

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During the period of February 21, 2025 through February 28, 2025, there were reported 1 new listing, 5 closed sales, 2 pending sales, 0 active with contract, 1 expired listing, 0 cancelled listings, 1 temp off market, 6 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 28, 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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