Miami Housing Market

December 2023 Update

 

 

In this blog post, we’ll delve into the dynamics of a market that’s been named America’s top real estate market for this year but most importantly, about the Miami Housing Market. From fluctuating home prices to the impact of mortgage rate shifts, we’ll uncover the intriguing nuances that are shaping the Miami real estate landscape. Whether you’re a potential buyer, seller, or investor, this in-depth exploration will provide you with the insights you need to make informed decisions in this rapidly changing market.

 

 

First of all, let’s talk about prices.

So, check this out: the average price for single-family homes dipped just a bit, like by 0.5%. It went from $618,217 in October 2023 to $615,000 in November 2023. But hey, if you look at the bigger picture, it’s actually up by 11.8% from last year’s $550,000 in November 2022. Now, for condos, it’s a different story. Their prices went up more noticeably. We saw them jump from $405,000 in October 2023 to $420,000 in November 2023. That’s a cool 3.7% increase in just a month. And compared to last November, when the average was $395,000, we’re talking about a 6.3% increase year-over-year. Seems like condos are still in hot demand!

 

How many homes and condos actually got sold. 

For single-family homes, sales took a bit of a dive. We’re talking going from 871 sales in October 2023 to 707 in November 2023. That’s like an 18.9% drop in just a month. And if we compare it to last year, there’s a small 1.5% dip from November 2022’s 718 sales. Seems like the reason behind this month’s drop might be those higher mortgage rates that popped up in October.

 

Now, about condo sales – they also saw a bigger dip this month. Sales fell from 1,100 in October 2023 to 944 in November 2023, which is a 14.2% decrease. And year-over-year, it’s even more noticeable with a 12.0% drop from 1,073 sales in November last year. So, both house and condo sales slowed down a bit this month, but condos took a bit of a harder hit.

 

 

How much sellers are getting from their original asking prices and how fast deals are being made.

In the last Miami housing market update, single-family homes are looking pretty solid. Sellers kept getting about 97% of their asking price in both October and November 2023, which means they’re in a pretty strong spot to negotiate. Compared to last year, that’s a nice little bump up from 95%. Now, with condos, it’s pretty much the same deal. Sellers got around 96% of their asking price in November 2022 and 2023, though they did see a slight uptick to 97% in October 2023. These percentages are like a scoreboard showing who’s got the upper hand in negotiations and how tight the competition is for these properties.

 

How fast are these properties moving from “for sale” to “under contract”?

For condos, things sped up a bit in November 2023, with the median time to contract dropping to 32 days, down from 35 days last year. That’s an 8.6% decrease. For single-family homes, it’s even more impressive. The time to contract in November 2023 was just 23 days, way down from 31 days a year ago. That’s a huge 25.8% drop! This means homes are selling faster, indicating high demand and not enough houses on the market, giving sellers more of an edge. But stick around for more insights into the big changes in the market in this video!

 

Moving on with inventory.

So, what’s the deal with how many houses and condos are up for sale? For single-family homes, we saw a bit of a dip in new listings. It went from 1,440 in October 2023 to 1,248 in November 2023. That’s a 13.3% drop. But year-over-year, it’s actually a tiny bit up, like 1% more than the 1,236 listings in November last year. Condos are a different story. In November 2023, there were 1,942 new condo listings, which is 11.9% more than in November 2022. But if we compare it to October 2023, there’s a 6.1% drop from 2,072 listings.

 

Overall, there was a 7.7% increase in new listings from last year. 

 

Mortgage rates.

Remember back in October 2023, when they hit a crazy high of 7.8%? That shook up sales all over. But then, they started to drop. The Wall Street Journal reported on December 21 that rates went down to 6.67%. Freddie Mac even said the 30-year rate dipped from 6.95% to 6.67% in just a week, and that’s the second week in a row it stayed under 7%.

 

And here’s some insider info: Miami Realtors’ Chief Economist, Gay Cororaton, thinks that by the end of 2024, mortgage rates might cool down to about 5.25%. This could mean a 7% increase in home sales in Southeast Florida year-over-year, with prices still going up, but at a slower pace, like around 5%. Also, MIAMI Chairman of the Board, Ines Hegedus-Garcia, says that a more than 1% drop in mortgage rates is huge news for Miami’s real estate scene, and we should start seeing its effects on sales in early 2024.

 

However, mortgage rates started the new year with a bit of a leap, hitting the highest they’ve been since December 13th. But that’s not a huge surprise, since rates were already climbing a bit before the weekend. Plus, the bond market in the second half of December can be pretty unpredictable, and it doesn’t always tell us what’s going to happen in early January. 

 

But hey, rates are still way lower than they’ve been in the last seven months. The increase we’re seeing now is kind of small to medium-sized if you look at the bigger picture. It doesn’t necessarily mean that rates are going to keep climbing. 

 

And after hearing all of this, changing the topic a little but not so much, if you are wondering who is actually buying in South Florida, guess what? Miami’s real estate market was totally the star of the show in 2023 – it was named the top real estate market in the country! And here’s a cool fact: Florida was a huge hit with international buyers. Why does this matter? Well, according to the Miami Realtors, one in five international home sales in the U.S. happened right here in Florida. And get this – half of those Florida sales were in the Miami area! In 2023, international buyers spent a whopping $5.1 billion on homes in South Florida.

 

The thing is, these buyers were really into Miami and didn’t hesitate to pay top dollar, even if they hadn’t spent much time in Florida. It’s pretty wild – 73% of these buyers had only been to Florida once or twice before buying, and 6% bought without even visiting! This just shows how Miami’s real estate market isn’t just about local trends – it’s super connected to what’s happening around the world. The huge interest from abroad not only ramps up demand but also shakes up the prices.

 

After all this information I will say something to you.

Do you remember the times before the pandemic? It was kind of a normal market. No multiple offers, no lines, better amount of inventory… a healthier real estate market. Well we actually are in that moment. The moment prior to the storm. With interest rates expected to keep decreasing this year, extremely low inventory compared to those times and the demand waiting for the interest rates to drop, we are indeed in that moment. Experts are predicting another boom in the market with prices going up and multiple offers. In other words, if you have been looking to buy and you are ready, just do it. Do not wait. Otherwise, you will either compete with 7+ offers, dealing with giving the sellers everything they want like waiving the appraisal and other stuff. It will be more expensive for sure instead of what you think.

 

With prices fluctuating, mortgage rates in transition, and international interest soaring, now is the moment to take action. Don’t wait until the storm hits; seize the advantages of this evolving market. To discover the current value of your home in today’s dynamic real estate landscape, reach out to us. Our expert team is here to provide you with a personalized assessment and guide you through the exciting possibilities that Miami’s real estate market offers. Contact us today to unlock the potential of your property.

 

Thank you for reading. I look forward to connecting with you in Miami soon!

If you’re considering buying or selling in Miami, don’t hesitate. CLICK HERE or call me at 786-376-2398 to make your move.

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Sharon Colón
Your Favorite Real Estate Agent in Miami
ΓEA⅃ Broker, LLC
786-376-2398
[email protected]
www.sharoncolonre.com