AFFORDABILITY CHALLENGES HINDERING HOMEBUYERS

via themreport.com — The current real estate market’s elevated home prices and mortgage rates, as well as limited inventory, are the top reasons that Realtors and prospective homebuyers across races and ethnicities cite as barriers to purchasing a home, according to two new reports from the National Association of Realtors.

In partnership with Morning Consult, NAR’s 2023 Experiences & Barriers of Prospective Home Buyers Across Races/Ethnicities report surveyed White, Hispanic/Latino, Black, and Asian prospective homebuyers about their experiences. NAR’s 2023 Experiences & Barriers of Prospective Home Buyers: Member Study surveyed Realtors who focus on residential real estate regarding the latest buyer with whom they worked who has not yet purchased a home, and it compares findings with the consumer study.

“Homebuyers face the most difficult affordability conditions in nearly 40 years due to limited inventory and rising mortgage interest rates,” said Jessica Lautz, NAR’s Deputy Chief Economist and VP of Research. “The impact is exacerbated among first-time buyers who are more likely to be from underrepresented segments of the population.”

Among prospective homebuyers, Asian (27%), Hispanic (24%), Black (20%), and white (15%) respondents say the main reason they have not yet purchased a home is because they are waiting for prices to drop. White respondents (15%) are just as likely to say it is because they are waiting for mortgage rates to drop. Additional market-related reasons that prospective homebuyers cite as barriers include waiting for mortgage rates to decline (18%–25% of all four groups) and not having enough available homes within their budget (19%–24% of all four groups).

The top three reasons …READ MORE

The Current Miami Springs Market

TIME TO BUY OR SELL?
CALL US FOR AN EVALUATION

There are nineteen (19) active listings in the MS/VG market this week—a slight increase in inventory since last week. More increases in the months ahead? Anything is possible in this unique and unpredictable market. One (1) pending sale this week, and values remain strong in Miami Springs and Virginia Gardens. Despite interest rate increases, there are still many qualified Buyers out there. With tighter inventory and continued high demand, the market has been transitioning back to a Sellers' market. Please refer to the articles posted on our website.

Nearly half of the active listings are over one million dollars. Two are listed for more than $2,000,000!! Five (5) of the active listings have had a price reduction; one this week. We had been transitioning to a more neutral market. However, the continued tight inventory and demand, despite higher mortgage rates, gives Sellers an advantage and makes it difficult for Buyers. Although, things may start to slow down! Expected interest rates increases in the future can mean fewer buyers. We still anticipate more inventory increases.

DEMAND IS STILL THERE!

Mortgage interest rates are approximately 7% this past month. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are becoming more common again. The number of days properties are staying on the market is averaging 55 days. The demand remains high for properties under $500,000. There are no listings under $500,000. The low inventory at entry-level, higher interest rates, and homeowner insurance costs make it difficult for many first-time Buyers. No properties are priced between $400,000-$500,000; one (1) is priced between $500,000-$600,000; six (6) are priced between $600,000-$700,000; none (0) are priced between $700,000-$800,000; one (1) is priced between $800,000-$900,000; three (3) are priced between $900,000-$1,000,000; six (6) between $1-2 million; and two (2) are listed for over $2 million.

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

During the period of September 8, 2023 through September 15, 2023, there were reported 3 new listings, 3 closed sales, 1 pending sale, 1 active with contract, 0 expired listings, 1 cancelled listing, 0 temp off market, 1 price reduction, 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 Friday, September 15, 2023. 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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