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Low Mortgage Rates Help Boost Existing Home Sales In Miami-Dade

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mortgage-downpaymentIn January, total home sales in Miami-Dade County climbed by 15.6%, representing a double digit increase from the same month in 2019, according to the Miami Association of Realtors.

“Low mortgage rates and homebuyers from tax-burdened states continue fueling Miami real estate,” said realtors association chairman Jorge L. Guerra Jr.

Miami single-family home sales increased from 774 to 887 and existing condo transactions grew from 833 to 970 in January compared to the same month in 2019. Guerra said a rise in mid-market and $1-million-and-up transactions played an integral role in last month’s increases. For instance, there was a 52.5% increase in sales of Miami condos priced between $400,000 and $600,000 and a 32% increase in sales of Miami single-family homes in the same price range.

As a result, the Miami market is chipping away at its supply of inventory, which has decreased for consecutive months since mid-year 2019.

“With consumer confidence rising, unemployment low, job creation high and increased migration to Florida, Miami real estate should enjoy steady growth,” Guerra said.

However, the Miami-Dade market continues to depend on cash sales to drive transaction volume. Cash buyers comprised 33.8% of January total closed sales, almost double the national figure of 21%. Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market, the association report states.

According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 3.62% in January, down from 3.72% in December. A year ago, the commitment rate was 4.46%.

Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 13 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.

 

Source:  Forbes

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