Mortgage Rates Jump to 14-Year High

According to Redfin, the Labor Day holiday brought with it a slight downturn in the housing market, with the rise in rates as a catalyst, with home-touring activity taking a nosedive, and the share of sellers dropping their price remaining near a record high.

Redfin Chief Economist Daryl Fairweather noted, "Thanks largely to mortgage rates near or even above 6%, potential homebuyers and sellers are focusing on the back-to-school season and enjoying the last days of summer rather than getting into an uncertain market. It may feel like you are playing roulette when it comes to timing when to lock your mortgage rate, but just remember you can refinance when rates eventually do turn down.”

As a result of decreasing demand, fewer homes sold above list price than any time since February 2021, as Redfin reported that the average sale-to-list price ratio fell to its lowest level since March 2021. The typical home that sold during the four weeks ending September 4 went for 0.3% below its final list price, following a year-and-a half of the average home selling above list price

“Though mortgage rates are still more than 250 basis points higher than a year ago, homebuyers are finally seeing some relief from record-high listing prices, which fell in August as growth continued slowing year-over-year,” said Jones. “As the summer wraps up and kids head back into the classroom, typical seasonal trends of cooling demand coupled with this year’s rebalancing housing market will mean more homes are up for grabs for buyers who are still looking this fall. Despite a slightly more favorable homebuying environment, still-high rates mean a typical monthly mortgage payment would be roughly $2,100 in August, $800 more than this time last year...READ MORE

The Current Miami Springs Market

A GREAT TIME TO SELL!

There are twenty-seven (27) active listings in the MS/VG market this week. The inventory has been increasing the last several weeks It had averaged under 15 listings the last several months. I expect continued increases in inventory in the months ahead. Pending sales have slowed. There are only four (4) pending sales. A definite sign that sales have slowed down. Values are still strong in Miami Springs and Virginia Gardens. 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-five (25) 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! Seven (7) of the active listings have had a price reduction; one (1) this week. We remain in a Sellers' market due to high demand and low inventory, but that has started to change. More interest rate increases are coming in 2022. We anticipate inventory will increase.

MULTIPLE OFFERS HAVE DROPPED AND DEMAND IS SLOWING!

Mortgage interest rates have remained around 5%, but expect increases. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are less common in today's market. The demand remains high for properties under $500,000. There is two (2) listings just under $500,000. The low inventory and interest hikes make it difficult for most first-time Buyers. Two (2) properties are priced between $400,000-$500,000. None (0) properties are priced between $500,000-$600,000; six (6) between $600,000-$700,000; two (2) between $700,000-$800,000; six (6) between $800,000-$900,000; three (3) 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 September 2, 2022 through September 9, 2022, there were reported 3 new listings, 0 closed sales, 0 pending sales, 3 active with contract, 0 expired listings, 1 cancelled listing, 0 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, September 9, 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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