The metropolitan area of Miami stands the seventh-largest in the United States and the 72nd largest in the world. The metro area includes the City of Miami, which is the cultural and financial core of the metropolis. Miami-Dade is the most populous city. The second populous city is in Broward, and the third is Palm Beach countries in Florida.
The housing market in South Florida is strong and was a sellers’ market in 2020. However, after the pandemic, the market bounced back in July 2020, and since then, the real estate market has been increasing. One of the reasons for pent-up demand is the low mortgage rate in 2021.
Miami Dade County in South Florida showed an increasing trend because people and companies relocated to high-density, high-tax areas. The county’s home sales surged 142.4% year- over year. Its single-family homes rose 66.9% from 2,688 to 4,486. The median prices of single-family increased by 31.6% year-over-year from $380,000 to $500,000.
Median prices have increased for the 38 consecutive quarters spanning over 9.5 years. Condo prices increased from by 25.8% year-over-year; from $262,250 to 330,000. Non-depressed sales comprised of the total closed residential sales in 2Q of 2021. Only 1.6% of all closed residential sales were distressed in the second quarter of 2021 compared to 4.9% in 2Q in 2020. In 2009, distressed sales constituted about 70% of Miami Sales.
The monthly supply of properties for single-family homes has declined from 54.2% to 2.2%, indicating a seller’s market.
According to realtor Sunny Isle Beach the median listing home price prevailing in Miami Dade County, FL was $449 000, trending up 12.5% year-over-year. The median home price per square foot was $331. The median home sell price was $410K. Homes were FL sold for 2.08% below the asking price during September. The ratio of Sale-to-List Price was about 97.92%. Buyers prefer a price ratio closer to 90%
Miami Real Estate Market Forecast
For deciding to buy properties in Miami Real Estate, it is essential to know the market forecast, the latest prices, and the prevailing trends for 2021-2022. The price tendencies that Zillow recorded over the earlier period may be taken as a basis for predicting the market. It can be seen that in Miami Dade, since November 2011, the average home price has appreciated by almost 128% (Home Value Index). On average, the home value in Miami is $390,205. This value has seasonal adjustments by including the middle price tier of homes. The home values of Miami Dade County have gone up by 15.4% over the last year.
As per the data of the Neighborhood Scout, the Miami real estate appreciated by 139.07% during the last ten years; this is among the top ten annual appreciations. Miami’s yearly appreciation rate has been highest at 10.12% in the previous ten years. During the last quarter, the appreciation rate was 3.43%, equalling 14.43% annually. Thus, all the appreciation is positive for the Miami housing market.
The low mortgage rate favors sellers, and the pricing is trending higher in the current phase.
- Palm Beach Metro of Miami-Fort Lauderdale shows an increase of 18.2% over the past year, and the prediction of Zillow shows a rise of 20.6% in the next twelve months.
- Palm Beach County home values are trending an increase of 21.3% over last year, and the growth will continue for the next twelve months due to an imbalance in supply-demand
- Miami-Dade County home values are up by 15.4% over the past year and will continue to increase due to an imbalance of supply-demand.
- Broward County home values have increased by 19.7% over the past year and will continue for the next twelve months for the supply-demand imbalance.
- The typical value of homes in Florida (Statewide) is $321,643, the middle price tier of dwellings. Values have up by 22.2% over the past year, and the trend will continue to increase in the next twelve months
A chart prepared by Zillow shows that there has been a growth of median home values since 2011 and the prediction until September 2022.
Economist Ken Johnson has found that home values in the tri-county are overpriced by 20 %. This implies that properties are over-valued by the highest level in the last eight years. The Corona Virus crisis caused the housing market crash. It was 60% over-priced during the housing market collapse of 2008-2009
Secondly, the average income of people in this area is more substantial than what it was twelve years ago. Their financial strength is that even if ten to thirty percent of their incomes fall, they can still afford to pay for their homes. Even if one adult remains unemployed, they can still bear home values.
Thirdly, the lower interest rate will bolster the real estate market because many people can refinance their home loans. Moreover, there is no crisis for subprime mortgages. At the same time, there were record low delinquencies before the coronavirus pandemic exploded.
This situation prevents a glut of supplies more than demand or depression in the housing market. Miami area has a massive rental market. More than two-thirds of people prefer renting to owning homes in Miami areas. If you compare this to Americans, the approach is reversed; two-thirds of Americans own their own homes. Thus, there is substantial pent-up demand for local real estate. Those who have jobs and can take advantage of declining real estate prices are expected to bolster the South Florida housing market.
Builders are engaged in building condos, luxury homes, and apartment buildings. The monthly rent in Miami was $2400 and $2000 in the Miami Suburbs. Those who can own a house for that monthly payment can afford a home now. Because of this reason, the homes within the range of $300, 000 to 400, 000 are a sellers’ market. In fact, there is not much growth in the inventory in this price range such as median price point for homes in the real estate market in Miami.