Miami Real Estate Market Update: November 2023 Highlights The Miami-Dade County real estate market continues to make headlines as we delve into the latest statistics for November 2023. With shifting dynamics, lower mortgage rates, and strong demand, the Magic City is gearing up for a dynamic year in 2024. In this blog post, we'll explore key insights from the Miami Association of Realtors and the Multiple Listing Service (MLS) system's report, providing a comprehensive overview of the market. Additionally, we'll offer insights into the impact of wealth migration and the economic influence of real estate sales on the local economy. Mid-Market Condo Sales Surge In November 2023, mid-market condominium sales in Miami-Dade County, priced between $400,000 and $600,000, experienced an impressive 8.8% year-over-year increase, totaling 137 transactions. This surge in sales indicates a growing demand for mid-range properties in the Miami area. Cash Transactions Dominate What sets Miami apart is the prevalence of all-cash transactions, which accounted for a remarkable 50.2% of all condo sales in November. This figure is nearly double the national average, highlighting Miami's attractiveness to cash buyers. Falling Mortgage Rates One of the most significant developments in the Miami real estate landscape is the decline in mortgage rates. Since their peak in October 2023, mortgage rates have fallen by over 1%. According to MIAMI Chairman of the Board, Ines Hegedus-Garcia, "Mortgage rates falling more than 1% since October's peak is major news for a high-demand real estate market like Miami." These lower rates are expected to have a positive impact on sales numbers in early 2024. Forecasted Growth Chief Economist Gay Cororaton forecasts that Southeast Florida's home sales could expand by approximately 7% year-over-year by the end of 2024, with prices appreciating at a modest pace of 5%. This growth is expected to be driven by lower mortgage rates, increasing demand from first-time buyers, and sustained migration of high-income households into the area. Total Sales Decrease Despite the surging mid-market condo sales, total Miami-Dade sales decreased by 7.8% in November 2023. Elevated mortgage rates and low inventory in key price points contributed to this decline. However, it's essential to note that these statistics do not include South Florida's robust developer new construction market and volume. New Listings on the Rise In a positive sign for prospective buyers, Miami witnessed a 7.7% year-over-year increase in new listings in November 2023. While the market remains favorable to sellers, this influx of fresh supply provides more options for homebuyers. Mortgage Rates on the Decline Mortgage rates in Miami have fallen below 7% for the first time since August 10, 2023, according to Freddie Mac. This development is expected to bolster the local real estate market further. Low Inventory Persists Despite the positive indicators, Miami-Dade County's total inventory remains down by 42.9% from the historical average. This shortage affects both single-family homes and condominiums. Price Appreciation Continues Miami-Dade County continues to experience significant price appreciation. Median prices for single-family homes increased by 11.8% year-over-year, reaching $615,000. Existing condo median prices rose by 6.3% to $420,000. This marks an impressive 12 years of consecutive home price appreciation. Wealth Migration Impact The influx of wealth migration has contributed to rising home prices in South Florida. In 2021, Miami-Dade County saw a boost in household income by $16 billion due to migration, with new households moving into the area boasting substantial average adjusted gross incomes. Economic Impact Each home sale in Miami has a substantial economic impact, generating income for real estate industries, expenditures related to home purchases, and contributing to new construction. In November 2023 alone, Miami's total economic impact from home sales reached an impressive $201 million. Low Distressed Sales Reflecting the health of the market, only 0.9% of all closed residential sales in Miami were distressed in November 2023, significantly lower than in previous years. Miami Outperforms the Nation Miami's median price appreciation surpasses national and state averages, making it an attractive market for both buyers and sellers. Properties Sell Near List Price Homes in Miami are selling close to their original list price, with single-family homes receiving 97% and condos 96% of their original list price. Whether you're looking for your dream home or considering selling your property in this dynamic market, now is the time to take action. Explore the latest listings on our Home Search page, or find out the current value of your property with our Home Valuation tool. Additionally, if you're wondering about affordability, use our Affordability Calculator to gain valuable insights into your budget. In conclusion, Miami's real estate market remains dynamic, with strong demand, falling mortgage rates, and a positive outlook for 2024. Whether you're buying, selling, or simply exploring the market, the Magic City offers a wealth of opportunities. Don't miss out on the chance to make your mark in this thriving real estate landscape.

In a surprising turn of events, new single-family home construction experienced a significant surge in November, driven by a combination of robust demand and lower interest rates. The National Association of Home Builders (NAHB) recently released data that sheds light on this unexpected boost in the housing market. Strong Growth in Housing Starts According to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, overall housing starts increased by an impressive 14.8% in November. This surge brought the seasonally adjusted annual rate of housing starts to 1.56 million units. This figure represents the number of housing units that builders would initiate if the current pace were to continue for the next 12 months. Single-Family Housing Starts Leading the Way Within this overall number, single-family housing starts showed remarkable growth, increasing by 18% to reach a seasonally adjusted annual rate of 1.14 million units. Despite this surge, single-family starts are down by 7.2% year-to-date. In contrast, the multifamily sector, which includes apartment buildings and condominiums, also experienced growth, rising by 6.9% to an annualized pace of 417,000 units. Factors Behind the Surge The unexpected surge in new home construction can be attributed to two key factors: lower interest rates and a shortage of resale inventory. The combination of these factors has spurred a wave of homebuilding activity, meeting the strong demand for housing. Challenges Persist Despite the positive growth, home builders continue to face challenges in the form of elevated construction and regulatory costs. Alicia Huey, NAHB Chairman, noted that while the increase in housing starts aligns with the latest builder survey, which reflects a rise in builder sentiment and future sales expectations, builders are still grappling with the costs associated with their projects. Future Projections NAHB Chief Economist Robert Dietz believes that while the single-family housing starts figure is currently remarkably strong, it may undergo revisions or see a slight dip in the coming months. Nonetheless, he forecasts a potential 4% gain in single-family starts in 2024. This expected growth is based on the assumption that mortgage rates will settle lower, economic growth will slow down, and inflation will decrease. Regional Trends On a regional and year-to-date basis, the combined single-family and multifamily starts have seen variations. The Northeast saw a decline of 16.7%, the Midwest a decline of 12.3%, the South a decline of 6.2%, and the West a decline of 14.3%. Permit Data In addition to housing starts, permit data also showed some interesting trends. Overall permits decreased by 2.5% to a 1.46 million unit annualized rate in November. Single-family permits, however, increased slightly by 0.7% to a rate of 976,000 units. Nevertheless, single-family permits are down by 8.4% year-to-date. Multifamily permits decreased by 8.5% to an annualized pace of 484,000 units. When examining regional permit data on a year-to-date basis, permits are lower across the board, with declines of 19.9% in the Northeast, 15.3% in the Midwest, 10.3% in the South, and 12.8% in the West. In conclusion, the unexpected surge in home construction in November highlights the resilience of the housing market in the face of various challenges. Lower interest rates and a lack of resale inventory have spurred this growth, though builders remain cautious about rising construction and regulatory costs. As we move forward, the housing market's trajectory will continue to be influenced by economic factors, making it a space to watch closely in the coming months.

The Florida housing market is showing some promising signs of improvement as we head into the final stretch of 2023. According to the latest data from Florida Realtors®, November brought some welcome news for homebuyers in the Sunshine State. In this blog post, we'll delve into the key highlights from the report, focusing on the facts and figures rather than opinions. Increased Listings and Inventory Growth One of the most significant takeaways from the report is the increase in property listings and available inventory. Florida's housing market saw a notable boost in both categories. The inventory for existing single-family homes rose by a substantial 13.9%, while condo-townhouse units experienced an even more significant increase of 49.8%. This surge in inventory levels means that prospective buyers now have more housing options to consider, which could be especially encouraging for those who may have felt discouraged during previous home searches. Closed Sales In terms of closed sales, Florida reported positive figures in November. Closed sales of existing single-family homes statewide totaled 17,722, representing a 4.2% year-over-year increase. Existing condo-townhouse sales also saw a slight rise of 0.3% compared to November 2022. It's worth noting that closed sales may occur within 30 to 90-plus days after sales contracts are written. New Listings Surge A notable trend observed in the Florida housing market is the increase in new listings. New listings of single-family homes in the state surged by 15.3% in November compared to the previous year. Townhouses and condo units followed suit, with new listings rising by an impressive 25.9%. These numbers suggest a growing inventory of available properties, providing more choices for potential buyers. Median Sales Prices Despite the increase in inventory, Florida's median sales prices continued to show positive growth. In November, the statewide median sales price for single-family existing homes stood at $413,000, marking a 3.3% increase from the same month in the previous year. Condo-townhouse units also saw a boost, with the median price reaching $330,000, reflecting a 7.5% increase year-over-year. Supply Levels Supply levels are a crucial indicator in the housing market, and November's data showed significant changes. Florida had a 3.7-month supply of single-family existing homes last month, marking a substantial 32.1% increase compared to the previous year. Condo-townhouse units reported a 5-month supply, up by an impressive 85.2% over November 2022 levels. These trends are encouraging for both buyers and sellers in Florida's housing market. With a growing inventory, increased closed sales, and rising median prices, the market appears to be on a positive trajectory. The data suggests that Florida might return to pre-pandemic levels of single-family inventory by the end of the year, providing more opportunities for those looking to buy or sell a home. In conclusion, November 2023 has brought some promising developments to Florida's housing market. These trends indicate a market that is steadily recovering and offering more choices to homebuyers. As always, it's essential to stay updated on market conditions if you're considering entering the Florida real estate market, as conditions can vary by location.

The Federal Reserve Keeps Rates UnchangedAs we head into the final months of 2023, the real estate market continues to face its own unique set of challenges and opportunities. One of the key factors that both buyers and sellers are keeping a close eye on is interest rates. Recently, the Federal Reserve made the decision to keep rates unchanged, providing some stability and predictability for the real estate market.For buyers, this decision means that mortgage rates will remain at their current levels for the foreseeable future. This is great news for those looking to purchase a home, as it offers them the chance to lock in a low-interest rate and save money over the life of their loan. With rates remaining unchanged, buyers can continue to take advantage of historically low rates and make their dream of homeownership a reality.Additionally, the decision to keep rates unchanged provides buyers with a sense of confidence and reassurance in the market. Uncertainty surrounding interest rates can often deter potential buyers from making a purchase, as they fear rates may increase and make homeownership less affordable. However, with rates remaining steady, buyers can move forward with their plans knowing that their mortgage payments will not fluctuate dramatically.On the other hand, sellers should also take note of the Federal Reserve's decision. With interest rates unchanged, the demand for homes may continue to rise, as buyers are eager to take advantage of the low rates. This increased demand could result in a more competitive market, allowing sellers to potentially sell their homes at higher prices and in a shorter amount of time.Furthermore, the stability in interest rates can also provide sellers with confidence in the market. They can list their homes knowing that there is a pool of eager buyers looking to take advantage of low rates. This knowledge can help sellers set realistic expectations and make informed decisions when it comes to pricing and negotiating offers.In terms of real estate news, the Federal Reserve's decision to keep rates unchanged reflects their commitment to supporting economic recovery and stability. By maintaining low interest rates, the Federal Reserve aims to stimulate borrowing and spending, which in turn can boost the overall economy. This is positive news not only for the real estate market but also for the broader economy as a whole.In conclusion, the Federal Reserve's choice to end 2023 with unchanged interest rates has significant implications for both buyers and sellers in the real estate market. Buyers can take advantage of historically low rates and confidently pursue homeownership, while sellers may benefit from increased demand and the opportunity to sell at higher prices. Overall, the decision provides stability and predictability for the real estate market, supporting economic recovery and growth. As we move forward, it will be interesting to see how these unchanged rates continue to shape the dynamics of the real estate industry.