Miami Real Estate on Pace for Second-Biggest Sales Year Ever
If you're a Miami resident who's been thinking about selling your home, you may be wondering if now is the right time. According to recent reports, this could be a really good year to sell! In fact, Miami is on track for its second-biggest sales year ever. So what's causing this uptick in activity? And what does it mean for buyers and sellers alike? Keep reading to find out.
According to statistics from the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system from September 2022, the Miami-Dade County real estate market is on track to have its second biggest sales year ever. This is because the resilient market is slowly moving toward equilibrium in the wake of rising mortgage rates.
"Transactions this winter will be down nationwide, according to Fernando Arencibia Jr., chairman of the board of MIAMI. "The unprecedented rise in mortgage rates — from 3% to 7% — combined with the fact that sales will be compared to Miami's historic 2021 real estate market means this winter's transactions will be down," he said. "However, Miami's solid market fundamentals will significantly shield our market. Real estate is fundamentally a market-based industry based on supply and demand. Even with a smaller buyer pool, we are still monitoring numerous offers because there haven't been any statistically significant increases in new listings.
Miami is Anticipated to Have its Second Largest Sales Year Ever
Through September 2022, the Miami-Dade County real estate market has already sold 25,990 homes in total (or 95 transactions per day), putting it on track to surpass historic 2021 as the second-best year ever for total annual sales.
Miami's September 2022 sales fell by 28.1% year over year, from 3,031 to 2,178, compared to a record September 2021, as a result of rising mortgage rates and low inventory.
Miami's pre-pandemic September sales did better than September 2022 total sales. Between 2018 and 2019, Miami saw an average of 2,129 total house sales in September. In September 2022, there were 2,178 sales.
Due to a lack of availability and rising mortgage rates, single-family house sales fell 30% year over year, from 1,241 in record-breaking September 2021 to 869 in September 2022. Due to a scarcity of inventory and rising mortgage rates, Miami existing condo sales fell 26.9% year over year from a record-breaking 1,790 in September 2021 to 1,309 in September 2022.
The Fed is committed to reducing the 40-year high inflation rate and voted in favor of another Fed Funds rate rise in September. Despite not setting mortgage rates, the Fed has an impact on them through the way it implements monetary policy. As a result, the 30-year fixed mortgage rate has experienced an extraordinary range of volatility over the past 52 weeks, ranging from 2.99% to 6.92%.
Due to a lack of availability and rising mortgage rates, single-family house sales fell 30% year over year, from 1,241 in record-breaking September 2021 to 869 in September 2022. Due to a scarcity of inventory and rising mortgage rates, Miami existing condo sales fell 26.9% year over year from a record-breaking 1,790 in September 2021 to 1,309 in September 2022.
The Fed is committed to reducing the 40-year high inflation rate and voted in favor of another Fed Funds rate rise in September. Despite not setting mortgage rates, the Fed has an impact on them through the way it implements monetary policy. As a result, the 30-year fixed mortgage rate has experienced an extraordinary range of volatility over the past 52 weeks, ranging from 2.99% to 6.92%.
With the Miami-Dade County real estate market on pace to have its second biggest sales year ever, now is a great time to put your home on the market. If you're thinking of selling your home in South Florida, contact me today. I would be happy to provide you with a free, no-obligation consultation and help you determine the best course of action for selling your home quickly and for top dollar.
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