Miami Lakes Weekly Market Report
June 14-20, 2021
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ACTIVE LISTINGS: 12
NEW TO MARKET: 2
TOTAL ACTIVE WITH CONTRACT (AWC): 10
Properties that are AWC, and can still be purchased with a back-up contract. Call for availability and details.
ACTIVE WITH CONTRACT THIS WEEK: 5
NEW PRICE REDUCTIONS: 1
TOTAL PENDING: 16
PENDING THIS WEEK: 1
PROPERTIES SOLD: 4
PROPERTIES REMOVED FROM MARKET
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The Miami Lakes Market Report, is published weekly and monthly, to help buyers and sellers stay informed of our local market conditions, when they are planning on selling or buying a home in our hometown. I hope you find the reports timely & useful. If you have any questions about the sale or purchase of your home, give me a call.
You and your family, will be in good hands!
-Jesus M. Fernandez, REALTOR® & Website Publisher
INTEREST RATES: The 30 year fixed mortgage rate went down slightly to 2.93% from the previous week's 2.96% rate. Historical low interest rates, represent a great opportunity to purchase, as hedge against inflation, even in a seller's market.
We should see interest rates start to go higher, even as sales have started to slow down, and the Federal Reserve yields to inflationary pressures.
CLOSED SALES: The beginning of the month began with 4 sales. The second week of June, improved slightly with 5 closed sales, and this past week we had another 4 sales. June, so far has 13 sales and has surpassed May's 11 closed sales, and may beat April, which had 16 sales.
TIME TO CONTRACT: Over the last 4 months, the average time to contract in Miami Lakes, for multi-family homes has been roughly 30 days. It has now accelerated to roughly 23 days on average. Most sellers can expect multiple offers, within just days, under current market conditions, if the property is priced right to market.
MEDIUM SELLING PRICE: The medium selling price in May (the last month reported), rose for the fourth month in a row, rising to
$345,000 from April's high of $327,000 and from $304,00 in March, and February's $281,000.
INVENTORY: Presently, there are only 12 multi-family homes available for purchase. There are an additional 10 properties that can still be purchased, with a back-up contract. Call for availability or for more information.
DID YOU KNOW?
Great deals can be found using a back-up contract, when there is a shortage of properties for sale, like we are experiencing in Miami Lakes, and other areas.
Occasionally, deals fall through and you will be the first in line. To learn more about purchasing with a back-up contract give me a call. It's not as complicated as you might think.
MIAMI LAKES REAL ESTATE TRENDS: Affordability, and lack of inventory continue to play a role in Miami Lakes real estate. Presently, there are only 4 multi-family homes, offered for less than $250,000. All 4 are condos. One 3 bedroom and 2.5 bath townhouse, is listed for almost $500,000 another 4 listed for more than $450,000.
The lack of affordability and properties available for purchase has accelerated over the last year, with prices in this property segment rising 12% year-over-year. It is likely that this trend will remain with us and play a role in the rest of 2021.
LOOKING AHEAD: South Florida, is experiencing a record demand for housing, at a time where the supply of affordable homes are in short supply. At the same time, South Florida has it's share of the 5% nationwide home loans, which are delinquent or in forbearance. At the end of June, after the moratorium on foreclosures is lifted, we should start seeing foreclosures notices go out, throughout South Florida.
Nationwide, the unemployment numbers for May, showed a slight improvement over April's 6.1% going down to 5.8%. Locally, unemployment is at 8.2% and has hovered around 8% since last October, with little improvement. For perspective, this time last year, unemployment in Miami-Dade was 10.3% an in January of 2020, it was only 1.8%. Eventually, the high unemployment we are experiencing will creep into real estate, as affordability become more acute.
Inflation is another are of concern, which lenders are keeping an eye on. Rising inflation will eat away at the little profit lenders are making now. The Federal Reserve has stated that they intent to keep interest rates low for the next two years or until 2023.
Economists are concern with long term rates and not with the short term rates, which the Federal Reserve can control. Long-term rates which lenders control, cannot be sustained for too long, if lenders are to remain profitable. How long will lenders offer 3% 30 year fixed rate mortgages? Eventually, they will be forced to raise rates or go under. The moment one large bank starts raising their rates, others will follow. When this happens, we should see a bit of a cooling off period to the buying frenzy, and sales should decline. Home prices should also stabilize and possibly decrease, as inventory levels rise and the selling competition intensifies among sellers.
So when is it a good time to sell? Those who are thinking of selling a in a year or two, would be wise to keep track of the housing market and possibly sell sooner, rather than later. The current equity you have in your home may be reduced by as much as 10%, once home buying slows down, due to rising rates.
DID YOU KNOW?
Often buyers considering the purchase a home under foreclosure threat, have mixed feelings. Many feel bad for the family and are afraid to make an aggressive offer, so they don't feel insulted. However, many fail to see that by actually making an offer and purchasing the home, it is perhaps the best way to help that family, facing financial difficulty. Often, its a win-win situation for the parties involved.
WHY DO PEOPLE BUY OR SELL?
In my experience, people purchase and sell property for personal reasons, regardless of market conditions. If you are unsure if now is a good time to sell or purchase property, call me. I can help you determine if this is a good time for you. The fact is, sometimes, it's not a good time to sell or purchase property. It really all depends on your personal situation. For honest real-world advise, call me. I'll help you put things into perspective and present you with all your options. I've been helping families like yours, successfully navigate the purchase or sale of real estate, for more than 25 years.
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