Miami’s real estate landscape has been nothing short of intriguing. In this blog post, we’ll dive into the latest developments in the Miami housing market for 2023. So, let’s get started and uncover the key insights you need to know about the Miami housing crisis.
While it’s no secret that prices in Miami have been on the rise, what’s truly astonishing is how these prices have nearly tripled when compared to the more stable years of 2015-2019. If you’re considering buying or selling property in Miami in 2023 or 2024, this blog post is a must-read. We’ll explore the market trends, challenges, and opportunities that await you.
Despite the backdrop of elevated interest rates, Miami-Dade County has witnessed a 2% increase in single-family pending sales for two consecutive months. Year-over-year growth in pending sales and a notable 8% increase in showing appointments indicate resilience in the market.
If you’re on the fence as a seller or buyer, it’s crucial to stay informed. Here’s a spoiler alert: experts are predicting a decrease in interest rates in 2024. How will this impact you? We’ll delve into this topic shortly, so keep reading.
While Miami’s total home sales experienced a 13.6% year-over-year decrease in July 2023, a closer look at the data reveals important insights. Both single-family houses and condos saw year-over-year and month-over-month declines.
Now, let’s talk about median prices in Miami. Single-family home prices surged by 10.8% year-over-year, with a 1.4% increase month-over-month. But hold on, there’s more to the story. We’ll take a moment to discuss price increases and home appreciation trends in Miami.
A recent CoreLogic report ranked Miami #3 for annual home price acceleration, but a closer look at the data reveals a change in the appreciation trend. While prices are still rising, the rate of increase has slowed down compared to the remarkable surge witnessed from 2015 to 2019.
Shifting our focus to inventory, the numbers are telling. Total active listings in Miami-Dade decreased by 10.1% year-over-year. Single-family home listings dropped by 23.3%, while condominium inventory declined by 2.3% year-over-year.
To put this into perspective, Miami-Dade’s current inventory of 8,964 homes is significantly lower than the historical monthly average of 20,302. This Miami housing crisis shortage, a 59.1% decrease compared to July 2019, has far-reaching implications.
New listings are also feeling the impact, with single-family home listings down by 23.4% year-over-year and condominium listings down by 18.2%. Supply metrics tell a similar story, with single-family home supply decreasing to 3.2 months and condo supply showing an opposite trend by increasing month-over-month.
In essence, there’s a growing shortage of houses, with condos outnumbering single-family homes in the market.
Two critical factors to consider in today’s market are whether sellers are receiving full offers and how quickly properties are selling. In July 2023, the median percent of the original list price received was 97.2% for single-family homes, with a median time to contract of 24 days. For condos, it was 96.4% and 32 days.
Despite market fluctuations, Miami remains an appealing destination for remote workers. According to the Savills 2023 Executive Nomad Report, Miami secured the third position globally for high-level remote workers. With this demand, we can anticipate further price increases.
Here’s a crucial consideration: Miami’s price growth has exceeded 10%, even with mortgage rates holding steady at 7%. But there’s a twist in the tale. Experts predict that mortgage rates will trend downward in 2024. While it might be tempting to wait for lower rates, the shortage of available homes suggests that prices are unlikely to decrease.
As rates drop, competition among buyers is expected to intensify in the coming year.
So, what does a 7% rate mean for buyers? It’s time to get practical. If you’ve been dreaming of your ‘forever home,’ it might be time for a reality check. Consider starting with a ‘get my foot in the door to start building equity’ home.
A 7% rate on a $440,000 home with a 20% down payment equates to about $2,300 a month. Dropping that rate to 6% saves you $200 monthly. If the 7% rate aligns with your budget and long-term goals, seize the opportunity. Don’t wait for a lower rate, especially as the market gears up for increased competition. Start building equity now.
Remember the intense competition of 2020-2021? Well, don’t let history repeat itself. Prices are set to continue their upward trajectory, driven by heightened competition.
In this dynamic Miami real estate landscape, staying informed is your key to success. Whether you’re buying, selling, or investing, these insights offer valuable guidance. Don’t hesitate; act now and make the most of Miami’s ever-evolving real estate market. Your journey starts here.
In conclusion, Miami’s real estate scene is sizzling, and you’re at the center of it all. As your trusted Miami real estate agent, I’m here to be your guide and ally in navigating this dynamic market. But time is of the essence, and opportunities won’t wait. If you are ready to take the next step, schedule a discovery call with me by filling out the form below. Let’s turn your real estate dreams into reality in the Magic City.
Thank you for reading. I look forward to connecting with you in Miami soon!
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