DEADLINE LOOMING FOR HOMESTEAD EXEMPTION APPLICATIONS
This seems to be the question on everyone’s minds these days. South Florida’s housing market is strong. But will this trend continue? While Miami Dade and Broward experienced never before seen increases and waging wars on home property values and sales during the pandemic and continued through 2021, with mortgage rates increasing slightly over the past months and pandemic related relocations decreasing, will the real estate market remain strong? The experts and market trends seems to think so.
WHAT DO THE CURRENT STATISTICS REVEAL:
The second quarter of 2021 marked a record for Miami-Dade County real estate, with more U.S. individuals and companies moving to South Florida than ever before. According to Realtor.com, in just one year, single-family home transactions rose 66.9% and the median price for a single-family home in Miami Dade County rose 31.6% from $380,000 to $500,000. In September 2021 alone, the median listing price was $449,000, or $331.00 per square foot, an increase of 12.5% year after year. This means that, “taken as a whole, median prices have now increased for 9.5 years”. (Source: Realtor.com). Condos also shared in the increases, with median prices rising 25.8% year after year from $262,250 to $330,000. According to Zillow, the median home price in Miami-Dade County has appreciated by nearly 128% (Zillow Home Value Index). Miami Dade home values were up 15.4% just this past year. (Source: Zillow). According to Redfin, the average property on the market in Miami receives 3 offers and sells in around 52 days. (Source: Redfin). Miami real estate has appreciated over 1357% over the last ten years, putting Miami in the top 10% nationally.
WHAT WILL INFLUENCE FUTURE PRICES?
FORECLOSURES AND FORBEARANCES: As a foreclosure attorney, I can tell you that the wave of foreclosures expected after the pandemic did not occur. The pandemic forced many homeowners into default and forbearances, however with increased property values, borrowers bounced back. Today, non-distressed sales make up for 98.4% of all closed sales, leaving a very low percentage of distressed sales to drive values down.
LACK OF INVENTORY. Inventory is also at an all time low, with only 54.2% or 2.2 months supply of single family homes, and 5.1 months for condominiums. (Source: Redfin) This indicates that it continues to be a Seller’s Market, which will continue to drive up values and waging wars.
INTEREST RATES: Mortgage interest rates are also a big factor. While increasing in the past months, this week they dropped again below 3.0. That means, that if mortgage rates remain low, it will continue to boost the home buying activity and pull the home prices
PANDEMIC RELATED RELOCATIONS With Canada and other borders opening or set to open, an increased demand is expected. This could greatly influence the current supply and drive values up again. Other factors driving the hot market include
- Florida homestead exemptions right
- Low to no taxes
- High rental values
- Short term rental possibilities
HIRE THE RIGHT LAWYER! While successful investing in real estate is all about timing, having the right real estate attorney is crucial. I have been doing this for 23 years and consider this my specialty. Assisting buyers, sellers and foreigners with their real estate needs, from contract to closing. We are here. Free Consultation. Free Advice. Peace of Mind. Can’t beat that. Call us today.