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End of the boom? Property sales in South Florida dropped 20% in 2022

Although Miami continues to be one of the most sought after real estate markets, there was a slowdown in sales (PHOTO: Opy Morales)
Although Miami continues to be one of the most sought after real estate markets, there was a slowdown in sales (PHOTO: Opy Morales)

The pandemic made South Florida, and fundamentally the miami-dade county, a national and international epicenter. People from all over decided to move to this area blessed by a tropical climate, low taxes and growing job offers that came with the move of financial and technology companies to the city of Miami since 2020.

As expected, the increase in the demand for living in this area made the housing market will explode – and prices will rise –. Although Miami Dade continues to be one of the most sought-after areas in the world, the trend seems to indicate that the peak may already have passed. At least that’s what the recent residential property sales report by the Miami Real Estate Agents Association indicates.

It is believed that the rise in interest rates may have to do with the slowdown.  Photo: Opy Morales
It is believed that the rise in interest rates may have to do with the slowdown. Photo: Opy Morales

In Miami Dade County, they sold 32,627 residential properties in 2022. A very high number without a doubt, but that represents 20% less of real estate transactions for homes that were closed in 2021when there were 39,394 sales in Miami Dade.

But just because there are fewer sales doesn’t mean prices are down, although you do see a slowdown in the steady property appreciation seen during the pandemic. The 2022 median price for a home in the county was $530,900 and for apartments it was $374,500, just up from a year earlier. In other words, prices continued to rise but slowed down despite the fact that there has not been a substantial increase in inventory.

It is believed that the rise in interest rates may have to do with the slowdown.  Photo: Opy Morales
It is believed that the rise in interest rates may have to do with the slowdown. Photo: Opy Morales

In it broward countynorth of Miami Dade where cities like Fort Lauderdale or Hollywood are located, the trend is similar. 32,573 residential properties were sold there in 2022, down 19% from 2021. Median home value there last year was $553,125 and $217,861 for an apartment, very similar to 2021 median prices.

The slowdown in purchases can not only be explained by a decrease in the interest of buyers, but a fundamental fact is that interest rates for mortgage loans increased from 3% to 7%, making any purchase more expensive and discouraging buyers. buyers across the country. In fact, the report indicates that the “cooling” in sales was noticed towards the end of 2022, when rates increased again.

While there may be a slowdown, experts don’t expect prices to drop much or the market to cool down. On the contrary, Miami continues to be one of the most sought-after markets in the entire country.

Keep reading:

Foreign investment in Miami real estate rebounds after the dip during the pandemic
They predict that Miami will be one of the most sought after real estate markets in the United States in 2023

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