Mortgage Rates Surge,
Hitting Highest Point Since October 2008
The Freddie Mac fixed rate for a 30-year loan surged this week hitting 6.29% – the highest level since October 2008. This builds on the upward momentum of the past 5 weeks and follows the 10-year Treasury’s ascent past the 3.5% mark. Capital markets widely anticipated the Federal Reserve’s FOMC announcement that it would continue its monetary tightening in order to tame high-riding inflation. Fed Chairman Powell remarked this week that the economy remains on a “modest growth” path, with solid job gains and low unemployment. He also highlighted this week’s surprising ramp-up in Russian forces, signaling further military actions which are expected to continue disrupting global supply chains and add upward pressure on inflation.
What it Means:
For housing markets, higher borrowing costs are the very remedy the Fed is prescribing in order to cool demand and lower overheated prices. The monetary tightening is achieving its intended purpose, with sales of existing homes down for seven consecutive months and August sale prices down 6% from their June peak. While sale prices were still higher than a year ago, the growth moderated into single-digits, a clear sign that the exponential growth of the past several years has slowed.
The buyer of a median-priced home, at today’s rate and using a fixed 30-year mortgage, is weighing a monthly payment that is about $900 per month higher than a year ago, which adds more than $10,000 to their yearly financing burden. For buyers watching their take-home pay shrink due to higher prices, and shopping budgets diminish due to rising rates, today’s housing market remains highly unaffordable. In many locations, price cuts may be the only viable option to restore housing balance and affordability....READ MORE
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The Current Miami Springs Market
A GREAT TIME TO SELL!
There are twenty-six (26) active listings in the MS/VG market this week. The inventory has been increasing the last several weeks It had averaged approximately 15-20 listings the last several months. I expect continued increases in inventory in the months ahead. Pending sales have slowed. There are only three (3) pending sales. A definite sign that sales have slowed down. Values are still strong in Miami Springs and Virginia Gardens. Despite interest rate increases, there are still many qualified Buyers out there, BUT as rates increase, there WILL be fewer Buyers! Today, it is still a Sellers' market. Please refer to the articles posted on our website.
Twenty-four (24) of the active listings are priced over $500,000. Six (6) properties are listed between 1-2 million dollars. One (1) is listed for OVER 2 million dollars! Seven (7) of the active listings have had a price reduction; two (2) this week. We remain in a Sellers' market due to high demand but that has started to change. More interest rate increases are coming in 2022. We anticipate inventory will increase.
MULTIPLE OFFERS HAVE DROPPED AND DEMAND IS SLOWING!
Mortgage interest rates topped 6% last week, with more increased expected. There are still serious qualified Buyers looking for the right property. Timing is everything! Multiple offers are less common and the number of days on the market are increasing. The demand remains high for properties under $500,000. There are two (2) listings just under $500,000. The low inventory and interest hikes make it difficult for most first-time Buyers. Two (2) properties are priced between $400,000-$500,000. One (1) property is priced between $500,000-$600,000; seven (7) between $600,000-$700,000; three (3) between $700,000-$800,000; four (4) between $800,000-$900,000; two (2) between $900,000-$1,000,000; six (6) between $1-2 million; and one (1) is listed for over $2 million.
SELLERS, THIS IS YOUR MOMENT!
Low Inventory + Low Interest Rates = Seller's Market.
During the period of September 16, 2022 through September 23, 2022, there were reported 2 new listings, 2 closed sales, 2 pending sales, 3 active with contract, 1 expired listing, 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 Friday, September 23, 2022. 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.
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