Real estate platform Redfin reports the price for a home in Miami is up over 27 percent from last year. The median sales price for a home in May 2022 was $530,000.
And it’s not just home prices that are accelerating. Homes are selling at a faster clip than they did a year ago. Miami homes sold on average after 43 days on the market compared to 62 days on the market in 2021.
Neighborhoods in and around Miami have experienced price hikes as well. For example, here are four popular neighborhoods with their median home sale prices:
- Wynwood, $680,000
- Brickell, $715,000
- Edgewater, $780,000
- Coconut Grove, $2,025,000
How have rising interest rates impacted the Miami homebuying market?
Despite interest rates going up over the last few months, this has not led to a significant decline in Miami home prices. Where we have seen an impact, however, is in the number of homes sold in the last month.
The Miami Association of Realtors reports total homes sales decreased by about 10 percent in the month of May. There were 3,198 completed sales for a total dollar volume of $2.8 billion.
So, what is fueling Miami’s hot housing market?
Experts say one reason behind the continued inflated Miami home prices is the large number of out-of-town buyers flocking to the area. More homebuyers are willing to relocate in search of an affordable home. This is particularly true for remote workers who have the flexibility to live and work from wherever they want.
Miami’s white sand beaches and warm weather are an attractive draw for relocating homebuyers. According to a recent report from Redfin, Miami is the most popular destination in the U.S. for migrating homebuyers.
Redfin measures migration popularity by counting net inflow, which is a comparison of the number of people looking to move into a region versus those looking to leave. Since the first of the year, Miami has ranked number one for in-bound migration. Tampa ranks number two, just recently surpassing Phoenix.
Not surprisingly, many of the people moving to Miami are coming from areas where housing is even more expensive. To these newcomers, Miami’s home prices seem low in comparison. People are moving primarily from pricey New York City and other regions of the Northeast.
Redfin says investors are also buying up Miami properties. Some of these are deep-pocketed corporations that will then renovate and rent out the properties.
This type of marketplace activity makes it difficult for local homebuyers to compete for the limited inventory of homes available. This impacts renters as well, many of whom simply cannot afford the high prices charged by corporate property owners.
This video from CBS Miami outlines some of the challenges renters and homebuyers are facing:
Have you been priced out of the Miami homebuying market?
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