WHAT FACTORS ARE DRIVING UP MONTHLY HOUSING PAYMENTS?

via themortgagepoint.com—The median monthly housing payment in the U.S. reached an all-time high of $2,747 during the four weeks ended April 7, up 11% from the previous year—this according to a new report from Redfin.

Housing payments are rising due to increasing home prices and mortgage rates. The median home-sale price is $378,250, up 4.5% year-over-year (YoY) and barely $5,000 short of the record high set in June 2022. The average 30-year fixed mortgage rate is 6.82%, which is lower than the near-8% rates seen last October but still more than double pandemic-era lows.

Prices remain stubbornly high because there is enough homebuying demand to support them. The Redfin Homebuyer Demand Index, which measures demand for tours and other buying services from Redfin brokers, has reached its highest level since July.

A separate measure of tours shows that they have climbed 33% since the beginning of 2024, which is significantly greater than last year’s gain over the same period. Even though supply is increasing—new listings increased 14% year-over-year—inventory remains low in comparison to usual spring levels, indicating competition for many of the houses on the market.

Mortgage rates—the second factor driving increasing monthly housing payments—continue to rise because the Fed has kept interest rates high this year. Daily average mortgage rates rose to their highest level since November this week as the March inflation report was hotter than predicted, after a rise last week as the latest jobs report showed a stronger-than-expected economy.

“For homebuyers, the latest CPI report means mortgage rates will stay higher for longer because it makes the Fed unlikely to cut interest rates in the next few months,” said Chen Zhao, Economic Research Lead at Redfin.…READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are thirty-seven (37) active listings in the MS/VG market this week. One of the listings is a spec house that hasn’t been built. The list price is a whopping $3.2 million! Inventory has hovered around 30+/- listings these last months. Increased inventory is better for Buyers, but prices remain strong for Sellers. We are truly in a unique market! Though the market appears to be slowing down a bit, prices remain strong in Miami Springs and Virginia Gardens and demand continues despite high interest rates and high prices. Please refer to the articles posted on our website.

There are twelve (12) active listings over one million dollars. Thirteen (13) of the active listings have had a price reduction; none this week. There are four (4) new pending sales this week. We have been transitioning to a more neutral market. However, the tight inventory and high demand for entry-level homes makes it difficult for Buyers. The high interest rates, however, also create a difficult situation for Sellers that have a mortgage with a low interest rate. Where do they go if they decide to sell? Sales activity has slowed down a bit. Any additional interest rate increases in the future can mean fewer Buyers.Interest rates aside, we continue to anticipate more inventory increases.

DEMAND IS STILL THERE!

Mortgage interest rates have remained around 7%. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are more common again. The number of days properties are staying on the market is averaging 71 days. There are no properties listed under $500,000. The low inventory at entry-level, higher interest rates, and homeowner insurance costs make it difficult for many first-time Buyers. There is three (3) listings priced between $500,000-$600,000; six (6) listings are priced between $600,000-$700,000; seven (7) are priced between $700,000-$800,000; seven (7) are priced between $800,000-$900,000; one (1) is priced between $900,000-$1,000,000; twelve (12) between $1-2 million; and one (1) spec house listed for over $3 million.

SELLERS, THIS IS THE MOMENT TO PRICE IT RIGHT!
Increasing Inventory + Increasing Interest Rates = Less Demand.

During the period of April 5, 2024 through April 12, 2024, there were reported 4 new listings, 0 closed sales, 4 pending sales, 0 active with contract, 0 expired listings, 0 cancelled listings, 0 temp off market, 0 price reductions, and 0 price increases.

HOW DOES YOUR HOUSE COMPARE?

The table below shows the current status of the Miami Springs/VG real estate market as of April 12, 2024. All closed sales are within the last 90 days.

*Disclaimer: The data relating to real estate displayed on this website and the chart above comes from the Miami Board of Realtors MLS. All listing information is deemed reliable but not guaranteed and can be independently verified.

 A complete list of all the properties for sale in Miami Springs or any other area of 

Miami-Dade County can be sent to you on regular basis. 

Request it at:  charlie@leonardrealestategroup.com

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