Miami Housing Market 2022: Prices, Trends & Forecast
The Florida housing market is still a seller’s market. As prices continue to climb, the supply remains low. Houses are only on the market for a brief time before being purchased. As more time goes on, the Miami housing market continues to heat, so what does the Miami housing market 2022 look like?
Prices continue to climb. While the market may have had a downturn during the early days of the pandemic, it bounced back in July 2020 and has continued to heat up since then. It is still breaking records as high demand continues.
In April 2022, Miami was the seventh for total home sales in history.
Low mortgage rates have contributed to the surge in demand for housing in the Miami area. This makes it possible for more people to afford homes and makes it rather impossible for the supply of houses to keep up.
The median price for an average single-family home increased 9.7% year over year. This increase saw the median price go from $515,000 to $565,000. Families are paying an average price of $390 per square foot.
According to realtor.com, the average price for any home in Miami-Dade county was $525,000. This is a year-over-year increase of 19.6%.
The sale-to-list price ratio was 100%. That means that almost all homes were selling for list price, another indicator that the Miami housing market is a strong seller’s market.
The median price of condominiums increased 20% year over year. This increase in condo sales prices is why some real estate investors only buy condos, but our company buys houses and condos in Miami instead of only focusing on condos, because the competition is so fierce.
In the past decade, home prices have appreciated by 155%. The Miami housing market is among the top ten in the nation for real estate appreciation.
The total housing supply in the Miami area remains low at 1.2 months worth of inventory. When the housing supply is low, it often results in higher prices and the market being a seller’s market. The housing supply needs approximately six months for the market to be balanced. Once the housing supply exceeds six months, it will become a buyer’s market.
If a housing market starts to cool off, the supply will slowly increase, as seen in the Fort Worth housing market.
Single-family homes have seen a 13.6% decrease in supply. With a supply of 1.9 months, this is a seller’s market. The decrease in supply indicates a strong demand for single-family houses in the area.
Condos saw a drastic decrease in the supply of 67.6%, leaving the dwindling supply at 2.3 months.
The Miami area is the seventh largest metro area in the United States. It has been one of the most popular areas in the United States for years and is now one of the most popular places to live. The trend of migrating to Miami has only grown stronger over the past few years, which has continued throughout 2022.
According to the Miami Realtor Association, housing purchases decreased year over year from April 2021 to April 2022. However, April 2022 saw the strongest sales in the area compared to every other April except for April 2021.
The average price for single-family homes has increased for 125 months straight, making it one of the longest real estate trends on record.
Out of the past 131 months, condominiums have seen price increases in 127 months.
The real estate appreciation trend has continued this year as well. Last quarter saw an appreciation of slightly over 8%. Many economists are now saying that houses in the area are overpriced. This is also seen in the Jacksonville housing market.
Zillow has predicted that in the next year, homes in the entire metro area of Miami and surrounding areas will increase by 16.8%.
As more people move to the Sunshine state, the housing supply will dwindle, creating a stronger seller’s market. Low mortgage rates continue to make it possible for people to purchase homes.
However, if the economy continues to suffer and mortgage rates drastically increase, this will see more people opting for cheaper methods of moving to Florida, such as renting. We have yet to see an indication of that happening in Miami.
The Miami housing market will continue to be a seller’s market for the rest of 2022 and much of 2023. This means that housing prices will continue to climb. Right now, the market does not appear to be correcting itself. This trend is expected to continue as the housing market continues to overheat.
The economy in Miami remains strong. Miami offers more average income paying jobs, meaning that a family might still be able to afford their house if one person in the family loses their job. Jobs are plentiful. This will continue to attract more people to the Miami area.
The Miami economy can weather the storm if there is a recession, which means that the real estate market will remain strong throughout economic downturns that may impact other areas in the nation.
This could be good or bad, depending on whether you need to sell your home quickly or if you’re just looking to buy. Buyers interested in moving to the area within the next few years should buy a house sooner rather than later. As the appreciation rate and prices continue to climb, buyers will find themselves wishing they had purchased a home sooner if they try to wait for prices to come down.
Sellers can get top dollar for their Miami homes right now. If now is not a good time to sell, they can trust that the real estate market will continue to be strong and deliver huge gains if they hold onto their Miami properties. Right now, sellers have the power at the negotiating table.
Now is also a good time for real estate investors to get into the game. Purchasing a home now will help real estate investors see a huge gain if they hold onto the property for a year or two.