Miami has long been one of the hottest real estate markets in the United States. It attracts investors and homebuyers worldwide. The city always has a strong demand for real estate. It leaves many asking, “Will Miami Run Out of Inventory?” Let’s explore Miami’s real estate market and examine whether the city is at risk of running out of inventory.
2 Factors to Answer the Question: Will Miami Run Out of Inventory?
1. High-Interest Rates
Mortgage interest rates in Miami real estate remain high. The region is one of the few major housing markets that will not face a fall in prices this year. Analysts from Goldman Sachs have said they expect Miami to experience price increases in 2023.
High-Interest rates mean some wealthy owners might be looking to sell their properties. Such a situation could lead to an increase in inventory, giving potential buyers more options.
That is great news if you’re considering buying a property in Miami. With more properties hitting the market, you’ll have a better chance of finding the perfect home or investment.
2. Inventory Report
At the end of 2022, the active inventory was only 10,730, almost half of what was before the pandemic in 2019. But fast forward to February 2023, and there was a 37.4% increase in active listings compared to the previous year. Such an increase could mean we might see more options for buyers in the future.
Look at this exciting piece of news. There has been a significant increase in the inventory of single-family homes and condominiums in Miami. The inventory of single-family homes has increased by a whopping 63.5% year-over-year. Condominiums have seen a 26.4% increase during the same period. However, even with this increase, the new listings for single-family homes and condominiums have decreased by more than 20% year-over-year.
The months’ supply of inventory for single-family homes has increased by a whopping 123.5% to 3.8 months year-over-year. Condominiums are experiencing a similar effect, where inventory has increased by 73.1% to 4.5 months of supply.
Of course, if you still need to get ready to buy, you can watch the Miami real estate market. Following the trends can give you an idea of when to buy or sell. In the meantime, you can enjoy browsing through the many beautiful Miami properties. You can also contact local experts for Miami real estate insights.
Invest in Miami Real Estate
Are you planning to buy Miami real estate? Click here to contact Marion Ott. Marion is a Miami real estate expert. She can help clients with a wide array of needs achieve their goals. Reach out now to learn more about the Miami real estate market.
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