The Miami real estate market has seen some good news in recent months. Even though total home purchases decreased year-over-year in June 2022, compared to the all-time, record-breaking sales month of June 2021, they were still up and outperformed most expectations.
This marks the third-best June sales month in Miami real estate history and is a good sign that the market is continuing to rebound from the effects of COVID-19.
MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system also said that despite high mortgage rates and a limited inventory of available properties in the housing market, sales were driven by a growing number of buyers who are taking advantage of the state’s low tax rate and no income tax.
Single-family home sales decreased 26.1% yearly due to a lack of homes on the market and rising mortgage rates.
However, the statistics from June 2022 stated that the inventory of single-family homes rose to 19.9% compared to last year’s 2,853 active listings to 3,422 last month.
The National Association of Realtors (NAR) states that the total local economic impact of a typical Florida home sale is $112,000, which means that the total impact of June home sales in Miami-Dade County has incredibly positive implications for the local economy.
Miami home prices are also increasing rapidly, with single-family homes rising 15.8% to a median price of $579,000 and existing condo median prices up to 20.6% to a median of $419,000 year-on-year.
This is probably the longest streak of monthly price increases that we have seen in years, and it is caused by the strong demand for Miami real estate and a lack of available properties on the market.
South Florida, for instance, is seeing an increase in both local and foreign buyers.
More companies and financial institutions are also moving their operations to Miami, creating more jobs and a more robust economy, which in turn is attracting even more people to the area.
Meanwhile, nearby Latin American countries like Colombia and Argentina, as well as others, are also going through political and economic turmoil, which is causing many of their citizens to invest their money in Miami real estate instead.
All of these factors are coming together to create a perfect storm for the Miami real estate market, and we expect real estate prices to continue to rise in the months and years to come.
The Miami total dollar volume totaled $2.5 billion in June 2022, a slight decrease from May 2022’s $2.8 billion, which was the highest total dollar volume on record. Miami cash sales also decreased from 75.6% to 77.6%.
However, this does not mean that the market is slowing down; it is just a normalization after the record-breaking month of May.
Josh Stein, a recognized realtor in Miami Florida, attributes much of this success to solid job growth and international investment in South Florida.
“Miami’s real estate market is on fire. We’re seeing more buyers from all over the world than ever before, and they are willing to pay top dollar for properties in prime locations,” said Stein.
“With more people working remotely, there is no need to be tethered to one location. Miami offers everything that someone could want: great weather, beautiful beaches, a vibrant nightlife and culture scene, and of course, no state income tax.”
If you’re considering buying a home in Miami or already own property here, now is a great time to take advantage of the strong market conditions.
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