HOME INSURANCE PREMIUMS JUMP NATIONWIDE

via themortgagepoint.com—Homeowners across the U.S. are facing a sharp increase in insurance costs, with premiums rising 21% from 2021 to 2023, according to a new analysis from First American. That translates to roughly $300 more per year per policy on average, outpacing both income growth and inflation and threatening the financial stability that homeownership typically represents.

This surge has been driven by a “perfect storm” of rising natural disaster risk, soaring construction costs, and higher claim payouts, reshaping the home insurance landscape nationwide.

According to the National Oceanic and Atmospheric Administration (NOAA), the annual number of billion-dollar disaster events has tripled—from an average of seven per year (1980-2019) to 23 annually from 2020-2024. Both 2023 and 2024 set records, with 28 and 27 such events, respectively. The annual cost of these disasters has risen from $55 billion to $151 billion.

Meanwhile, the cost of reinsurance—coverage that insurers use to mitigate their own risks—has also climbed. These rising costs are being passed directly to homeowners, especially those in disaster-prone areas.

At the same time, construction expenses have surged. Between 2020 and 2023, material costs increased 35%, with wages rising 26%, pushing premiums even higher. According to the Producer Price Index and Current Employment Statistics, those prices rose another…READ MORE

The Current Miami Springs Market

DEMAND IS STILL THERE DESPITE HIGHER INTEREST RATES

This week there are thirty-eight (38) active listings in the Miami Springs/Virginia Gardens real estate market. Increased inventory is better for Buyers but prices remain high for Sellers, though we are seeing more price decreases this year. Property values remain strong in Miami Springs and Virginia Gardens, despite high interest rates.

There are fifteen (15) active listings over one-million dollars. At seventeen (17), almost half of the active listings have had a price reduction, two (2) this week.The number of days properties are staying on the market is averaging 54 days. There are no listings under $500,000; one (1) between $500,000-$600,000; five (5) between $600,000-$700,000; seven (7) between $700,000-$800,000; seven (7) between $800,000-$900,000; three (3) are priced between $900,000-$1,000,000; thirteen (13) between $1-2 million; and two (2) priced for over $2 million.

Sales have been slower this year but there are still many qualified Buyers out there. The limited options for entry level homes, high interest rates and homeowner insurance costs make it difficult for many first-time buyers. Additionally, there is a practically nonexistent number of entry-level homes (i.e. under $600,000). Interest rates aside, we continue to anticipate more inventory increases.

Mortgage interest rates remain under 7% and expected to fluctuate between 6-7% this year. Current interest rates create a difficult situation for sellers that have a mortgage with a low interest rate. Where do they go if they decide to sell? Any additional interest rate increases in the future can mean fewer Buyers. Properties are staying on the market for longer but some houses still quickly sell. It all depends on pricing, condition, and location, location, location. Timing is everything!

CALL US FOR AN EVALUATION

During the period of May 30, 2025 through June 6, 2025, there were reported 3 new listings, 1 closed sale, 3 pending sales, 4 active with contract, 0 expired listings, 0 cancelled listings, 1 temp off market, 2 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 June 6, 2025. 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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