Miami: Real estate prices are showing signs of stabilizing

MIAMI: For the first time in several years, the Florida real estate market is bringing good news to buyers. In the second quarter of 2022, The supply of real estate for sale began to grow, A sign of easing the inventory shortage that has caused prices to skyrocket in the past two years.

Christina Pappas, president of Florida Realtors, the association that brings together all state agents, said in a Q2 2022 report.

still Average time to find a buyer Statewide for single-family homes in the second quarter was 10 days for homes and 11 days for condominiumswhich indicates intense market activity.

The signs of a slowdown shown by year-over-year comparisons remain tepid but to be expected, given that stocks have been rising steadily and rapidly, to the point that some analysts are beginning to talk of a bubble.

The median home sales price at the end of June was $420,000, up nearly 20% from a year ago but flat compared to May. This is the first time that the average value of single-family home sales has not increased from May to June since 2008, and is an indication that prices are beginning to respond to the increasing level of inventory available to buyers.Realtors Florida chief economist Brad O’Connor said in the report.

“In June, 21% fewer single-family homes were reported than a year earlier. This resulted in a 13.2% increase in supply year-over-year. A sharp rise in stock at the end of June, which is now double what it was just four months ago, at the end of February. At this rate, we will be back to pre-pandemic stock levels for single-family homes by the end of the summer (September).”

Signs of market cooling coincide with rising mortgage rates. The interest rate on a 30-year fixed-rate mortgage averaged 5.52% in June 2022, a significant jump from a record 2.98% during the same month the previous year. This may also be a turning point where Sellers will have to start lowering prices to attract buyers. The summer of low interest rates is starting to fade.

In the computer system that collects real estate agents in South Florida, MLS, statistics for the past seven days show that 3,000 new units have been put on the market. In that period, 2,321 other properties that were already posted on the said platform saw price drops, while only 360 recorded a rise. This widening gap is another trend reversal recently.

However, for investors far from the stock market and inflationary protections, the Florida real estate market remains a wild card. They believe that interest rates will not affect the state in the same way as in other parts of the country. Florida has a very high percentage of cash buyers: About 33 purchases without a mortgage, in addition to the continuous internal and external migration that drives the housing market. In contrast, the foreclosure rate is still very low, so The state is one of the most powerful markets in the country.

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