In the bustling and vibrant city of Miami, the Miami housing market is experiencing a dynamic shift. The housing crisis has left its mark, and buyers are adapting to the new norm of 6-7% interest rates. As an expert Miami real estate agent, I am here to provide you with the latest numbers and insights that will help you navigate this rapidly changing landscape. And, if you know any would-be homebuyer on the sideline waiting for prices or interest rates to decrease, real estate experts offer you a sour forecast. Let’s get into the latest numbers.
Miami total home sales decreased 18.2% year-over-year in June 2023 where most of the properties purchased came to terms in May when mortgage rates peaked at 7.14%. In comparison, rates were at 5.27% on May 5, 2022. So, this means, we absolutely are seeing far less transactions than last year. However, single-family pending sales increased for the first time since November 2021 and showing appointments also increased 7% year over year for 2 consecutive months. So let me explain here what all of this means. Total home sales have decreased because, compared to last year, we have low inventory plus higher interest rates. Now, if we had more inventory, we would definitely have more sales since the demand is high out there. It’s no secret that the city has been facing a housing crisis, and with the current economic conditions, buyers seem to be adjusting to the new norm of 6-7% interest rates. And, having more pending homes, homes that went under contract, and more showings means more future sales.
According to CoreLogic’s monthly Home Price Insights report, Miami is leading the nation in annual home price appreciation. In May, home prices in Miami experienced a substantial annual increase of 11.8%.
In June, Single-family home median prices increased 7.5% year-over-year, increasing from $579,000 to $622,500. That exceeded the county’s last peak of $620,000 for a single-family home in May. The median prices of existing condos rose by 2% year-over-year, reaching $418,000 compared to the previous month of $410,000.
Let’s talk about the inventory.
Although an increase in overall inventory, Miami-Dade’s inventory remains close to its all-time lows. The historical monthly average for Miami-Dade inventory is 20,302 properties, but currently, it stands at only 9,027 properties and this is a huge low number because we urgently need more, we do have the buyer’s demand.
Let’s break that down. In June 2023, the inventory of single-family homes experienced a year-over-year decrease of 14.9%. On the other hand, the inventory of condominiums saw a year-over-year increase of 5.1%. Nationally, the stats are similar with 13.6% decreased.
Regarding new listings, there was a significant decrease in Miami single-family homes, with a 36% drop year-over-year. Similarly, new listings for condominiums decreased by 32.6%. But why do you think less sellers are putting their property on the market? Do let me know in the comments below.
The months’ supply of inventory for single-family homes showed a year-over-year increase of 17.9%, reaching 3.3 months. For existing condominiums, the inventory increased by 72.4% to 5 months. And this is also very interesting, both shows an increase from last year. However, month over month for single family homes has remained at 3.3 for three consecutive months now and a decrease from last month for condos.
How do you know if the sellers are getting multiple offers with the new data? Well 2 indicators are the next ones I am going to talk about.
The median percent of original list price received for single-family homes was 97.3% in June 2023, up from the previous months it has been going up for a while now and for the condos was 96.2%.
The median time to contract is the other factor and for single family homes remained at 27 same as the previous month but we know it has been decreasing for a while which both factors indicate sellers are getting excellent offers very close or at listed price offers and properties flying going under contract faster.
Despite the challenges, the Miami real estate market remains resilient and full of opportunities. The median home prices have soared, with Miami leading the nation in annual home price appreciation at an impressive 11.8%. As a savvy home seller, now is the time to act. With low inventory levels and strong demand, you have the chance to secure top dollar for your property.
Real estate experts predict continued high demand for homes in South Florida. However, for those potential homebuyers who are waiting on the sidelines, the forecast isn’t favorable as prices are expected to remain stable or even increase further.
Don’t miss out on the chance to capitalize on this thriving market. Reach out to me, Sharon Colon, your trusted Miami real estate agent, to find out what your home is currently worth. In a market where prices are expected to remain stable or even increase further, it’s crucial to stay ahead of the curve. Contact me today and let’s navigate the complexities of the real estate market together. Your dream deal awaits – seize it now!
Thank you for reading. I look forward to connecting with you in Miami soon!
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