Interest rates have increased nationwide on various forms of consumer borrowing and 30-year fixed-rate mortgages were at 5% on April 5th, up from 3%. Interest rates in Florida are currently at 5.12% for a 30-year fixed and 4.30% for a 15-year fixed mortgage according to Bankrate.com. Although real estate experts were speculating that interest rates would affect sales in Miami, there’s no evidence to suggest that they have affected the real estate market as of yet.
“I am not seeing a slow-down as of yet” said luxury real estate advisor Mauricio J. Barba when asked if higher interest rates were affecting sales.
What is keeping Miami’s housing prices and sales up?
The reason Miami may be a real estate outlier can be attributed to international buyers continuing to see Miami as a “bargain” when it comes to making their real estate purchases. This, combined with wealthy Americans from other parts of the country buying homes in South Florida, seem to be keeping prices and sales up. As reported by the Herald-Tribune, Miami housing prices increased by 27.3% in 2021. Nationwide home prices have increased by 24.8 % since March according to the New York Times.
Are Wall Street and Silicon Valley billionaires driving Miami housing prices up?
International buyers and wealthy snowbirds have always kept Miami real estate prices high, but now Wall Street and Silicon Valley billionaires are also relocating to the Magic City. With fewer taxes than New York City and the Bay Area, these latest transplants may be looking for a place where they can keep more of their assets.
Miami’s Housing Shortage
Further spurring the housing bubble, there is also a nationwide housing shortage, which is acutely felt by Miami real estate buyers and sellers. New and existing home inventory is at an all-time low. As research by Freddie Mac indicates, there’s been a 52% decrease in housing inventory since 2018 across the country. Miami is currently experiencing a 61% deficit, as reported by Fortune.
Speak to a Luxury Real Estate Expert
With interest rates increasing, and housing prices currently unaffected, a real estate buyer or seller will benefit greatly from having an expert in their corner. Miami Signature Homes President and luxury real estate advisor, Mauricio J. Barba, has been a mainstay in Miami’s uber-competitive high-end real estate market since 1994. Respected in his native community by clients and colleagues alike; he has logged top honors for elite performance in his field. Mauricio is connected worldwide but specializes in Coral Gables, Coconut Grove, Key Biscayne, Brickell, Village of Pinecrest, South Miami, Palmetto Bay/Falls area, and the Beaches.
The Miami Signature Homes team is relatively small compared to their sales volume. That has been important in keeping relationships with clients at a very direct level. Mauricio, Tania, Vicky, and Sebastian each maintain strong personal connections and professional relationships with all of their clients, many of which have been with the team for decades.
This personal level of service allows each member of the team to devote individual attention and care to every home sale or search. Assistants are great, but Miami Signature Homes makes sure their principals are the people solely responsible for returning important calls or emails 24/7, 365 days a year.
If you insist on white-glove treatment throughout one of the most important financial experiences of your life, call us at 305.439.8311.