US Home Prices on the Rise: Find Out Why Miami Records a 17 Percent Increase!



According to a recent report by national property broker Redfin, the median home-sale price in Miami experienced a remarkable 17% increase from the previous year's figures during the four weeks ending August 27, 2023.

According to a recent report by national property broker Redfin, the median home-sale price in Miami experienced a remarkable 17% increase from the previous year's figures during the four weeks ending August 27, 2023. This surge represents the largest spike in home prices the metro area has witnessed since October 2022. In fact, Miami's rise in home prices outshone the increases observed in the 50 most populous U.S. metros. However, it is worth noting that almost all of these metros still posted year-over-year price gains in August. Only six metros experienced a decline in prices, with half of them located in Texas, including Austin, Fort Worth, and San Antonio.


US Home Prices on the Rise: Find Out Why Miami Records a 17 Percent Increase!

Nationwide, the median home-sale price in the United States rose by a solid 5% compared to the previous year, reaching $380,000. This increase is the most substantial upswing in 10 months. Simultaneously, the typical monthly mortgage payment skyrocketed to an all-time high of $2,649, posing financial challenges for potential homeowners. The driving force behind these rising home prices can largely be attributed to the severe inventory shortage. The number of homes available for sale in the U.S. dropped by an astonishing 19%, marking the most significant decline since February 2022. Additionally, new listings also saw a decline of 10%.

The scarcity of homes on the market can largely be attributed to the fact that many homeowners are holding onto their properties due to the low mortgage rates they currently enjoy. Nearly all homeowners possess a mortgage rate below 6%, while rates are currently hovering around 7%. Consequently, this shortage of homes available for sale has created fierce competition among prospective buyers, despite the high mortgage rates and relatively small pool of buyers. Pending sales experienced a notable decline of 14% compared to the previous year, and mortgage-purchase applications dropped by 27%, reaching near their lowest level in about 30 years.

Another contributing factor to the significant year-over-year price increase is the rapid decrease in prices observed at the same time last year, with rising mortgage rates discouraging potential buyers. However, Miami's exceptional surge in home prices tells a slightly different story. Unlike most U.S. metros, Miami did not experience an annual drop in prices during the first half of 2023, as elevated mortgage rates deterred many homebuyers. The scarcity of supply, a common trend across the country, is one reason for Miami's price increase. However, the city continues to attract an influx of out-of-town buyers and investors, even with the increasing risk of climate-driven natural disasters such as hurricanes and flooding. These buyers remain undeterred by high mortgage rates as they typically pay in cash, with two in every five recent Miami homebuyers utilizing this method.

To provide a deeper understanding of the current state of the housing market, let us explore some key indicators of homebuying activity:

1. Mortgage Rates:

   - The daily average 30-year fixed mortgage rate on August 30 stood at 7.06%, down from a peak of 7.49% the week prior. Although the average 30-year fixed mortgage rate for the week ending August 24 was 7.23%, slightly higher than the previous week, it still represented the highest level observed in over 20 years.

2. Mortgage-Purchase Applications:

   - The week ending August 25 witnessed a 2% increase in mortgage-purchase applications compared to the preceding week (seasonally adjusted). However, purchase applications were down 27% compared to the previous year.

3. Redfin Homebuyer Demand Index:

   - The seasonally adjusted Redfin Homebuyer Demand Index, which measures requests for tours and other homebuying services from Redfin agents, experienced a minor 1% increase from the previous month. Nonetheless, it declined by 4% compared to the previous year.

4. Google Searches:

   - Google searches for "homes for sale" saw a decline of 9% from the previous month during the week ending August 26, and a decrease of approximately 19% compared to the previous year.

5. Touring Activity:

   - As of August 27, touring activity remained relatively stable compared to the start of the year, with no significant decline observed. This is in stark contrast to the 8% decline recorded during the same period the previous year, according to home tour technology company ShowingTime.

Here are some key takeaways for over 400 U.S. metro areas:

- Median Sales Price: The median home sale price was $379,975, a 4.8% increase from the previous year, marking the most substantial rise since October.

- Leading Metro Areas: Miami experienced the highest surge in home prices (17.1% YoY), followed by Newark, NJ (16.1%), San Diego (12.3%), Milwaukee (12.1%), and Providence, RI (11%).

- Declining Home Sale Prices: Only six metros witnessed a decline in home-sale prices, namely Austin, TX (-8.7% YoY), Phoenix (-2.4%), Portland, OR (-1.4%), Fort Worth, TX (-1.3%), Las Vegas (-1.2%), and San Antonio, TX (-0.5%).

- Asking Prices: The median asking price for newly listed homes reached $383,706, representing a 3.7% increase compared to the previous year, the most substantial rise since November.

- Mortgage Payment: The monthly mortgage payment for a home priced at the median-asking-price reached a record-high of $2,649, based on a 7.23% mortgage rate, marking an 18% increase from the previous year.

- Pending Sales: Pending home sales experienced a disheartening decline of 14.4% year over year, continuing a streak of over 15 months with double-digit declines.

- New Listings: The number of newly listed homes for sale fell by a significant 10.4% compared to the previous year. Although this represents a substantial decline, it is the smallest decrease observed in approximately a year.

- Active Listings: The number of active listings dropped by a substantial 18.7% year over year, the most significant decline since February 2022. Additionally, active listings slightly decreased compared to the previous month. Typically, at this time of year, they experience month-over-month increases.

- Months of Supply: The months of supply, an indicator of the balance between supply and demand, reached 2.9 months, the highest level since April. A balanced market involves four to five months of supply, with a lower number indicating a seller's market.

- Quick Sales: Impressively, 40.8% of homes that went under contract received an accepted offer within the first two weeks on the market, similar to the share observed in the previous year.

- Days on Market: Homes that sold spent a median of 29 days on the market, on par with the previous year's figures.

- Homes Sold Above List Price: Approximately 34.1% of homes sold above their final list price, experiencing a slight decline from the previous year's 36%.

- Price Drops: On average, 6.2% of homes listed for sale witnessed a price drop each week, marking the highest share since November and resembling figures from the previous year.

- Sale-to-List Price Ratio: The average sale-to-list price ratio, indicating how close homes are selling to their final asking prices, reached 99.7%, the lowest level in three months. This figure closely aligns with the ratio observed in the previous year.

In conclusion, the U.S. housing market continues to be fueled by low inventory, leading to significant increases in home prices. Miami stands out as the metro area with the highest surge in prices, attracting out-of-town buyers and investors despite potential climate-related risks. The scarcity of homes for sale, combined with skyrocketing mortgage rates, has created fierce competition among prospective buyers. Despite the challenges, it is crucial for homebuyers to remain vigilant and explore opportunities in this evolving real estate landscape.

US Home Prices on the Rise: Find Out Why Miami Records a 17 Percent Increase!

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone


New Zealand’s Housing Market Sees 4.4% Rise in Median National Rents

Latest data from Tenancy Services reveals a steady increase in national median rent to $600 a week, marking a 4.4% rise compared to the previous year.

Latest data from Tenancy Services reveals a steady increase in national median rent to $600 a week, marking a 4.4% rise compared to the previous year.

Read more

Residential Property Prices in Ireland Surge, Exceeding 2007 Peak

New data from the Central Statistics Office reveals that residential property prices in Ireland have soared, surpassing pre-recession levels by nearly 10%.

New data from the Central Statistics Office reveals that residential property prices in Ireland have soared, surpassing pre-recession levels by nearly 10%.

Read more

U.S. Home Sales Decline Amid Record Prices and Rising Mortgage Rates

U.S. existing home sales continue to drop for the third month in a row due to record-high prices and increasing mortgage rates, but a surge in housing inventory offers hope for potential buyers.

U.S. existing home sales continue to drop for the third month in a row due to record-high prices and increasing mortgage rates, but a surge in housing inventory offers hope for potential buyers.

Read more

Canada’s Housing Market Weakens in May Amid Anticipation of Bank of Canada Interest Rate Cut

The benchmark price of a home in Canada fell 0.2% in May to $714,300, with prices down 2.4% from last year. Will the upcoming interest rate cut provide relief for buyers?

The benchmark price of a home in Canada fell 0.2% in May to $714,300, with prices down 2.4% from last year. Will the upcoming interest rate cut provide relief for buyers?

Read more

Spanish Island and Coast House Prices Return to 2008 Levels

Discover how house prices on Spanish islands and coast have surged, nearing 2008 highs with an average 3.3% rise in May.

Discover how house prices on Spanish islands and coast have surged, nearing 2008 highs with an average 3.3% rise in May.

Read more

Discover Spain's Top Neighborhoods for Foreigners

Discover Spain's top neighborhoods for foreigners and explore the most sought-after locations for property investment. Start your search for the perfect home in Spain today!

Discover Spain\'s top neighborhoods for foreigners and explore the most sought-after locations for property investment. Start your search for the perfect home in Spain today!

Read more

27% of Canadian Renters Ready to Buy | Royal LePage Study

Discover the latest findings from the Royal LePage study, revealing that 27% of Canadian renters are ready to overcome financial hurdles and purchase a property within the next two years.

Discover the latest findings from the Royal LePage study, revealing that 27% of Canadian renters are ready to overcome financial hurdles and purchase a property within the next two years.

Read more

Australia Real Estate Prices Set to Soar in Two-Speed Market

Get the latest forecast on Australia real estate prices, with record growth expected in most markets but varying rates of increase.

Get the latest forecast on Australia real estate prices, with record growth expected in most markets but varying rates of increase.

Read more

European Property Market: A Shift in Price Trends

Discover the latest trends in the European real estate market and why the days of lower prices may soon be over. Stay ahead of the curve with insights on residential property values holding strong.

Discover the latest trends in the European real estate market and why the days of lower prices may soon be over. Stay ahead of the curve with insights on residential property values holding strong.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.