Welcome to the latest update on the dynamic Miami real estate market for December 2023. I’m Sharon Colon, your trusted Miami real estate agent, and I’m here to provide you with essential insights into what’s happening in this exciting, ever-changing market. In this comprehensive blog post, we’ll delve into key aspects like pricing trends, closed sales data, mortgage rate predictions, and a looming condo crisis that could reshape the landscape. Whether you’re a buyer, seller, or just someone curious about the state of Miami’s real estate, this information will be invaluable. So, let’s dive in and stay informed for smarter real estate decisions.
For single-family homes, the median sale price hit $610,000, which is a big jump of 14.9% from last December’s $530,900. But, interestingly, it’s a tiny bit lower than November 2023’s $615,000 – just a small 0.8% dip. What does this tell us? Maybe buyers are starting to see better deals, properties taking longer… it could be a few reasons. Now, looking at condos: the median sale price in December 2023 was $410,000. That’s 9.5% higher than December 2022’s $374,500. Compared to November 2023, though, there’s a small drop of 2.4% from $420,000. These month over month condo and single family house decreases could also be due to the usual year-end market shifts, which is normal for the season. Another reason could be more condos available on the market but let’s continue.
For single-family homes, we saw 754 homes sold in December 2023. That’s a slight 1.3% increase from December 2022’s 744 sales and a nice boost from November 2023’s 707 sales. In the condo world, December 2023 had 960 sales, which is actually 7.2% lower than December 2022 but slightly up from November 2023’s 944 sales. So yeah, despite rising prices, the season and not a lot of homes on the market, people are still buying.
So, let’s talk about what’s happening with how much of the asking price sellers are getting and how fast homes are going under contract. For single-family homes, sellers got about 96% of their asking price, a tiny drop from November’s 97%. But year-over-year, it’s actually up 1% from December 2022’s 95%. Why’s this important? It means buyers are getting a bit more room to negotiate, for now.
Now, about how quickly deals are happening: for single-family homes, the median time to contract in December 2023 was 28 days. That’s a bit slower than November’s quick 23 days, but way faster than last December’s 35 days – a 20% speed-up year-over-year. This slower pace in December means homes weren’t selling as quickly as before. For condos, it’s a similar story. They kept getting 96% of the list price, just like in November and last December. Condos took a bit longer to sell too, about 37 days in December 2023, up from 32 days in November and 34 days last December. Indeed, properties in Miami are taking longer to sell. After we saw mortgage rates decrease in December, I am guessing this could change for the next market update. Some of these metrics will definitely change for next month’s data.
And about new listings: for single-family homes, December 2023 saw 984 new listings, which is 21.1% less than November’s 1,248. In the condo market, there was a 9.6% increase in new listings compared to last December, but a 20.5% drop from November’s listings. Less listings in December is something usual because of the season so I am not worried about that but definitely it looks like demand’s high and supply’s getting tighter, keeping sellers in a sweet spot right now.
Freddie Mac says the average rate for a 30-year fixed mortgage was about 6.60% as of January 18. That’s a tiny drop from 6.66% last week, but of course, still higher than last year’s 6.15%. Now, Gay Cororaton, the head economist at Miami Realtors, thinks these rates might go down to around 5.25% by the end of the year. He’s saying this could happen if the Federal Reserve cuts rates by 0.75%, which he thinks might happen in the second half of 2024. So this is something we need to keep in mind for all of you holding and on the fence to buy or not. Because you are not the only one thinking the same. In Miami we do have the demand and already low inventory, so imagine if all of you jump back to the market at the same time when the rates decrease? It will happen what we saw back in 2020-2021. My best advice, sit down with a real estate expert now to evaluate all your options, even if you are not ready now.
You might not know this, but for a long time, a lot of condos in Florida didn’t really save up enough cash for future big repairs. And, well, that’s starting to cause some major headaches for condo owners here. Remember the Champlain Towers collapse in Surfside? That tragic event really got people and the authorities to focus on this problem. Now, there’s a new law coming in 2025. Buildings taller than three stories will need inspections every 30 years, yes more assessments especially those close to the coast. Another of the purposes of this new law is that condo boards can’t skip out on saving money for repairs anymore. They’ll have to have enough in their reserves for all those necessary fixes and the required inspections.
Sounds like a good plan, right? Kind of. Here is the thing, over 912,000 condos in Florida are hitting their 30-year mark, and fixing them up is gonna be pricey. If they don’t have the money already, the new assessments will be in place for the condo owners. But wait, there’s more – insurance costs are skyrocketing. Home insurance in Florida now costs about 31% more than the national average. That’s a big deal for condo owners. Not only are insurance rates climbing, but now there might be extra charges from your condo board for building repairs. That’s more dough out of your pocket on top of your usual condo fees.
And there’s another twist: Fannie Mae apparently has a secret list of condo buildings it won’t back for loans. This is leaving a lot of owners and boards in the dark, making it tough to sell properties. All these issues combined mean some condo owners might have to sell or, worse, face foreclosure. Want to get the full story on this potential condo crisis in Florida? Check out my detailed video – here is the link for you to watch it.
As we conclude this update, I want to emphasize the importance of staying informed in today’s rapidly changing real estate market. If you’re considering buying or selling a property in Miami, it’s crucial to have a clear understanding of the current landscape. Don’t leave your most significant investment to chance.
Reach out to me, Sharon Colon, your Miami real estate expert, for a personalized assessment of what your home is worth in this evolving market. With my in-depth knowledge and experience, I can provide you with valuable insights and guidance to make the right decisions for your real estate journey. Contact me today and let’s navigate this exciting market together.
Thank you for reading. I look forward to connecting with you in Miami soon!
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