Pending Home Sales Drop
to Lowest Level Since 2010 Amid Surging Rates

Contract signings for existing homes dropped 10.2% in September, to the lowest level since June 2010, with sharp declines across all geographic regions. Pending home sales were 31.0% below year-ago levels, offering another signal that real estate activity continues to slow in response to the relentless surge in mortgage rates. In September, the Freddie Mac 30-year fixed rate started the month at 5.66% and rose to 6.70%, erecting a tall barrier for many buyers who could no longer afford a mortgage.

What Does This Mean for the Housing Market:

Rates continue advancing, with the 30-year fixed rate well into 7.0% territory at the end of October. For buyers of a median-priced home who use a 20% down payment, the monthly mortgage payment has shot up a shocking $1,000 higher than last year. With wages falling behind on account of inflation, and rates rising, buyers’ purchasing power has been reduced by over $100,000.

As we look to the remainder of the year, we can expect interest rates to continue their upward trajectory. The Federal Reserve’s monetary tightening has not yet made a dent in inflation, which means that the bank is expected to hike its policy rate further.

For many buyers, especially first-timers, higher borrowing costs mean that a home purchase may be postponed until next year. Prices have been declining from their summer peak, but....READ MORE

The Current Miami Springs Market

A GREAT TIME TO SELL!

There are thirty (30) active listings in the MS/VG market this week, an increase since last week. The inventory had averaged approximately 15-20 listings the last several months. I expect continued increases in inventory in the months ahead. But who knows in this market! Pending sales have slowed. A definite sign that sales have slowed down. Values remain strong in Miami Springs and Virginia Gardens, for now. Despite interest rate increases, there are still many qualified Buyers out there, BUT as rates increase, there WILL be fewer Buyers! Today, it is still a Sellers' market. Please refer to the articles posted on our website.

Twenty-nine (29) of the active listings are priced over $500,000. Seven (7) properties are listed between 1-2 million dollars. One (1) is listed for OVER 2 million dollars! Eleven (11) of the active listings have had a price reduction; one (1) this week. We are transitioning to a Buyers' market due to decrease in demand and higher mortgage interest rates. More interest rate increases are coming in the next month, which means fewer Buyers and likely increases in inventory.

MULTIPLE OFFERS HAVE DROPPED AND DEMAND IS SLOWING!

Mortgage interest rates topped 7.0% last week, with more increased expected. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are less common and properties are staying on the market for longer. The demand remains high for properties under $500,000. There is one (1) listing just under $500,000. The low inventory and interest hikes make it difficult for most first-time Buyers. One (1) property is priced between $400,000-$500,000. Four (4) properties are priced between $500,000-$600,000; seven (7) between $600,000-$700,000; seven (7) between $700,000-$800,000; one (1) between $800,000-$900,000; two (2) between $900,000-$1,000,000; seven (7) between $1-2 million; and one (1) is listed for over $2 million.

SELLERS, THIS IS YOUR MOMENT!
Low Inventory + Low Interest Rates = Seller's Market.
SELL NOW!

During the period of October 21, 2022 through October 28, 2022, there were reported 4 new listings, 1 closed sale, 3 pending sales, 0 active with contract, 0 expired listings, 0 cancelled listings, 1 temp off market, 1 price reduction, 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, October 28, 2022. 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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