Cash buyers, short supply and global appeal are helping Miami’s real estate market defy the slowdown being witnessed across the rest of the U.S., according to a report Tuesday from the Miami Association of Realtors.
Last month, pending home sales skyrocketed from December in Miami-Dade County. Deals were up 35.5% month over month, from 1,688 in December to 2,288 in January, marking the first month-over-month rise of total pending sales since August 2022, the report said.
“Miami is a unique market because of our high percentage of cash buyers, surging migration and soaring number of international and domestic buyers,” Ines Hegedus-Garcia, chairman of the association, said in the report. “Miami is shielded in a sense from interest rate hikes because of those fundamentals. While other major U.S. markets are seeing decreasing prices, the Miami market is still very strong and still appreciating.”
As of Feb. 16, the most recent data available from finance giant Freddie Mac, the rate for a 30-year fixed-rate mortgage averaged 6.32%. This time last year, the rate stood at 3.92%, and in October, reached a high of 7.16%.
The median price for a single-family home, meanwhile, increased 4.8% year-over-year to $545,000 in January, the 134th consecutive month—equating to more than 11 years—that prices have risen in Miami-Dade County, the report said.
Existing condo median prices increased 11.1% year-over-year, from $360,000 to $400,000 in January.
At the same time, the number of active listings on the market were down 48.7% compared to pre-pandemic levels.
“South Florida is still in a seller’s market,” Gay Cororaton, the association’s chief economist, said in the report.
“Homes are in short supply as the area continues to see stronger job growth than nationally and sustained migration, especially from retirees and relocating workers and companies,” Ms. Cororaton said. “Home buyers should take into consideration that home prices are more likely to keep rising than to decline given the shortage of homes on the market and the decline in new home construction.”
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