Miami is well-known for its beautiful beaches and year-round tourist vibe. The city is also recognized as a great place for seniors and new families that want to live a dynamic and active lifestyle in Florida.
If you or someone you know was wise enough not to buy a home or condo in this region last year, do you believe 2021 will be the year to make the move and buy one?
Contents
The Area Has a Large Inventory of Homes for Sale
The high inventory of homes for sale on the market right now, according to housing analysts, is the primary cause of the price drop. There is about a year’s supply of homes for sale on the market.
According to current figures, there were roughly 1,600 residences and 1,150 condominiums for sale during the peak of the area’s real estate market in 2015, at prices that were undeniably operatic.
At the moment, there are over 8,000 houses and over 4,700 condominiums on the market, and they aren’t selling very quickly. The Board of Realtors predicts that house values will continue to decrease in 2021 and that this year may be the best time to sell.
Are Home Prices Going To Fall Back To the Ground?
Given the current state of the property market, it should come as no surprise that property prices in this city have become somewhat out of touch with reality.
According to one real estate broker, a seaside apartment that sold for $175,000 in 2010 was resold in 2013 for roughly $295,000, resold again in 2014 for $367,000, and again in mid-2015 for $579,000.
The very identical housing unit is on the market for $449,000, but no one has come to see it yet.
However, there are some indicators that reality is beginning to set in, and with it, the optimism that early 2021 will see a revival of seller’s pricing expectations and buyer’s readiness to invest in the real estate options in this attractive location.
Would the New Year be a Buyer’s Market for this Area?
Another key reason why buyers would want to start seriously considering making their move if they are interested in the city’s property markets in 2021, according to most local housing experts, is that mortgage rates are still at historically low levels, around 6%.
With inflation beginning to rear its ugly head, it appears that interest rates will soon start to rise once more. When that day arrives, the market price of a home or apartment that you can afford every month will begin to fall.
A moderate inflation-driven increase in the mortgage interest rate from 6% to 7% will limit the amount of houses you can buy for the same monthly spend by about 17%.
This year will undoubtedly be a “buyer’s market” in Miami, and those willing to put in the effort may be pleasantly pleased to find great deals.
If you’re visiting the state for the summer, now would be a good time to contact a local realtor like MyBrokerone and begin looking for the north miami houses for sale or condominium you’ve been looking for.