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The Miami real estate market slows down, depending on latest data by Redfin.
Why is this important: After more than two years of plummeting inventory and sky-high home prices, Miami buyers can finally get some relief.
What is happening: Home sales decline; stocks are increasing.
- “Buyers and sellers are trying to grasp the ever-changing economic conditions,” Fernando Arencibia Jr.chairman of the board of the Miami Association of Realtors, told Axios.
Yes, but: Arencibia expects Miami’s real estate market to remain strong as the city continues to see an influx of affluent international buyers and “homebuyers from high-tax, high-density states.” , did he declare.
The other side: Mortgage rates are above 6% for 30-year loans, which has pushed monthly payments up drastically from what they would have been a year or even six months ago.
- Even if house prices fall, monthly payments could put homeownership out of reach for many.
- For example, a $600,000 30-year loan costs $1,142 more per month than in 2021.
By the numbers: The market has cooled steadily since May, when median home prices peaked at $490,000 and 33.4% of listings sold above asking price, per red fin.
- In September, the median home sale price was $475,000 and only 18.8% of homes sold above the list price.
- Inventories fell 12.3% year-over-year, but rose from record highs in early 2022.
- Closed sales are down 31.4% compared to the same period last year.
- Price cuts are also on the rise. In May, 12.4% of listings reduced their original asking price; in September, that number rose to 18.2%.
Yes, but: The homes didn’t stay on the market as long as last year, according to Redfin. In September 2022, homes sold in 50 days on average, compared to 55 days in September 2021.
- Arencibia says demand from international buyers has recently rebounded from pandemic lows.
- Pending sales are relatively flat, indicating demand is coming from outside of Miami.