According to a recent survey of more than 380 home markets across the United States, the storm has passed and recovery is underway. The largest increase in home prices in seven years provides some respite from this bleak picture.
Miami is one of the most expensive real estate markets in the country. With a median home price of $335,000, Miami has seen a 9% increase in year-over-year prices. However, the city’s population has grown by more than 3 million since 2010 and continues to grow rapidly. This rise in population and prices has led to an increased demand for affordable properties. With real estate prices skyrocketing, more people are looking for properties that are within their price range.
The housing recovery’s benefit extend beyond owners. The housing business employs millions of people and accounts for a considerable chunk of the country’s GDP. Overall, residential construction and upkeep generates between 15% and 18% of GDP. The U.S. Low prices, low mortgage rates, and a more stable economy than in many other nations are propelling the luxury housing market to new heights.
Miami Housing Market: a Decade of Boom, Bust and Recovery
As the cost of borrowing dropped, so did the cost of the American Dream. Falling mortgage rates fueled a new residential real estate boom across the country. Millions of buyers has flooded the market, purchasing condos, townhouses, and single-family homes they previously might not have been able to afford. The U.S. home-buying reality now has been marked by a frenzy of demand fueled by the Federal Reserve’s drive to push down borrowing costs, a scarcity of listings and Wall Street’s new appetite for foreclosed homes.
If you’ve been thinking about taking the plunge and buying a home, this might just be the right time to do it. Rates on fixed-rate loans are still appealing, and experts say it’s still cheaper to buy than renting. Some financial institutions are also a little more lax with their loan qualification requirements this year.
There are some financial institutions that are also a little more lax with their loan qualification requirements this year. This is largely due to the fact that banks are still dealing with the aftermath of the 2008 global recession. The average interest rates for all types of loans have increased due to institutions trying to protect themselves from defaults, but not doing so means they’re at risk for not being able to cover their operations expenses.
The booming Miami housing market
In recent months, experts in the industry have been reporting a new wave of buyers that is driving prices up and demand higher. In a county where the supply of houses is already low, this has created a difficult environment for homebuyers to get what they want.
According to Ivory Cooks, a realtor with Coldwell Banker Realty, while no one can anticipate how long the strong demand will last, more homes will begin to come on the market in the next three to five months, altering pricing.
In February, the typical price for a single family house in Palm Beach County was $450,000, up 24 percent from February 2020. The median price of condominiums and townhouses was $236,000, up 24.9 percent over the previous year.
The demand for homes will continue to rise as long as the population growth. The United States Census Bureau estimates that by 2040, the population of the U.S. will grow by 100 million people and we won’t be able to house everyone.
Today’s competitive market is fueled in part by low home availability and borrowing rates, according to him. “Interest rates are still at record lows, and depending on the property, you may buy and get approved for less than 3% in some cases.
The powerful new wave of domestic buyers is a direct result of the pandemic catapulting the remote working trend, tax reform creating tax refugees, Florida’s lack of a state income tax, the influx of technology and finance companies, and “the awesome quality of life here and the enhanced buying power because of low-interest rates.”
The Miami housing market is experiencing an increase in high-end home sales because of the increased demand for luxury properties. This creates a problem where low to moderate income residents are unable to find affordable homes, leading many families to leave and go elsewhere. With this shortage comes higher rents that make it difficult for renters to afford living spaces while also saving money towards their own down payment.