The beginning of the end of 2021 is upon us, so we wanted to share some information on how the market is doing now. There’s also some important Miami real estate news to share, which didn’t make the headlines and may not have come to your attention.
We’re seeing a continued strong Seller’s market throughout Miami. Here are some sample Q3 numbers for overall residential sales.
308 Closed Sales
104 Homes Currently for Sale
134 Closed Sales
76 Homes Currently for Sale
High Pines/Ponce Davis
20 Closed Sales
9 Homes Currently for Sale
Miami emerges as #1 US migration destination.
While it’s no surprise that Miami is popular with out-of-state homebuyers – consistently making the Top 10 relocation destinations – it’s only recently that we’ve taken the top spot. In an analysis of 2 million homebuyers searching 112 metro areas, Miami saw a chart-topping mid-summer net inflow (those moving to Miami minus those leaving) of 7,610 homebuyers. That’s more than triple the 2,216 we saw in mid-summer last year. (Source: South Florida Agent Magazine)
As noted above, housing supply for these eager Buyers is critically low, so the advantage remains firmly in your favor to put your property on the market now.
Federal flood insurance subsidies are being stringently restructured. Significant rate hikes will follow for the biggest, most flood-prone properties.
On October 1, the US federal government began a phased roll-out of its overhauled flood insurance subsidies in the first major update to its pricing system since the program began in 1968. Also for the first time, home values factor into the price structure, so owners of large waterfront properties should expect significant flood insurance increases. Florida is projected to see some of the most dramatic spikes in these costs.
The move aims to emphasize the true risk of homeownership in flood-prone areas, particularly given the immediate reality of rising seas, with the goal of incentivizing homebuyers to opt for less vulnerable areas. (Source: Reuters)
How will record inflation affect home prices?
As part of the long, winding road to recovery in the wake of the worst of the pandemic, inflation was virtually inevitable. Indeed, it hit a 13-year high in June of this year. Housing, of course, has not escaped the effects. In addition to homebuyer demand continuing to outstrip supply, the spike in construction material prices has put further upward pressure on home prices.
Financial experts believe the economy-wide jump in prices is temporary, and will settle back down once supply is back in balance with demand. Housing is a notable exception. Together, the massive new wealth created over the past year, historically low interest rates, the home supply shortage, the time required to build new houses/condos, and other factors mean a return to more balanced home prices will likely take longer than the rest of the economy.
Amanda Agati, Chief Investment Officer for PNC Financial Services Group, notes simply: “When you have luxury inventory sitting at the lowest level in 10 years, there’s still room for prices to run.” (Source: BHHS EWM Realty Global Luxury Landscape Report)
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