South Florida – Miami Skyline – Courtesy: Shutterstock – Image by Don Donelson
According to a survey released on Tuesday by the Miami Association of Realtors, Miami’s real estate market is bucking the national slowdown thanks to cash purchasers, a shortage of available properties, and its appeal to foreign buyers.
In Miami-Dade County, pending house sales increased dramatically from December to last month. The number of transactions increased by 35.5 percent from 1,688 in December to 2,288 in January, marking the first increase in total pending sales from one month to the next since August 2022, according to the data.
“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.”
The 30-year fixed-rate mortgage rate averaged 6.32% as of Feb. 16, according to the most current information available from financial powerhouse Freddie Mac. The rate was 3.92 percent at this time last year, and it peaked in October at 7.16 percent.
In contrast, the median price for a single-family house rose 4.8 percent year over year to $545,000 in January, marking the 134th straight month—or more than 11 years—in which prices have grown in Miami-Dade County.
The median price of an existing unit climbed in January by 11.1% from $360,000 to $400,000 over the previous month.
In addition, there were 48.7 percent fewer active listings on the market than there had been before the pandemic.
“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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Mike has more than 30 years of experience in marketing and public relations. He once owned his own agency and has worked with some of the largest brands in the world.