Miami’s real estate market is cooling

Miami real estate market According to Redfin’s latest data, it’s slowing down.

Important reasons: After more than two years of plummeting inventories and skyrocketing home prices, Miami buyers can finally relax.

what’s happening: Home sales are declining. We have more stock.

• “Buyers and sellers are trying to keep up with the ever-changing economic landscape,” Fernando Arencibia Jr., president of the Miami Real Estate Association, told Axios.

Yes, but: Alencibia expects Miami’s real estate market to remain strong as it continues to see an influx of wealthy international buyers and “homebuyers from high-tax, densely populated states.”

Opposite side: Mortgage rates are over 6% for a 30-year loan, and monthly payments are significantly higher than they were a year ago, or even six months ago.

• Even with falling home prices, monthly payments can make ownership out of reach for many.
• For example, a 30-year loan of $600,000 is $1,142 more per month than in 2021.

By numbers: The market has cooled steadily since May, when median home prices peaked at $490,000 and 33.4% of properties sold above their asking price, according to Redfin.

• The median home sale price in September was $475,000, with only 18.8% of homes selling above list price.
• Inventories are down 12.3% year-on-year, but are up from record lows in early 2022.
• Closure sales are down 31.4% compared to this time last year.
• Prices are also going down. In May, 12.4% of listings lowered their original asking price. In September, that number jumped to his 18.2%.

Yes, but: Homes haven’t been on the market for as long as last year, according to Redfin. Homes sold in an average of 50 days in September 2022 compared to his 55 in September 2021.

• Demand from overseas buyers has recently recovered from the low levels of the pandemic, Alencibia said.
• Pending sales have remained relatively stable, indicating an increase in demand outside of Miami.