2021 has been great for sellers but a challenge for Buyers who had to battle with bids and waive some contingencies to purchase.
Miami Dade County has experienced a record number of sales, and low inventory. Prices have increased and I remember that for 2021, experts predicted that mortgage interest will remain steady but WOW what a difference for 2022, the Federal Reserve announced an increase in interest rates. According to the economist Lawrence Yun, NAR chief economist and senior vice president of research, the 30-year fixed mortgage rate will increase to 3.5% next year.
The second prediction according to the experts is that nationwide home prices will increase at a slow pace. The National Association of Realtors estimates housing prices will climb 5.7% in 2022, and Realtor.com predicts a 2.9% rise.
The third prediction is fewer bidding wars. In accordance with Greg McBride, chief financial analyst at Bankrate “Homebuyers will continue to be frustrated by the lack of homes available for sale but there will be fewer bidding wars and homes will take a little longer to sell,”
The fourth prediction is that the inventory will continue to be limited and better than 2021. Danielle Hale, Realtor.com’s chief economist, estimates that the Inventory is expected to grow 0.3% on average in 2022,”
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- Attention Sellers if you are highly motivated, this is the time to sell and take advantage of the low inventory. The numbers show that it is a seller’s market but do not expect Buyers to pay excessively especially if there is a financing contingency, remember, appraisal plays a large role in the process of purchase.
The fifth prediction is that foreign and domestic Buyers will continue being attracted to Miami’s beautiful weather, and no state taxes.
Check out the link for a 2022 Real Estate Forecast issued by the National Association of Realtors.
2021 Market Snapshot
It is equally important to see the market activity during this year, Let’s see how the market for single-family homes sales was:
- In Miami Dade County the number of cash sales increased 55% compared to last year.
- Comparing 2020 and 2021 the number of sales increased 9%.
- In December 2020 it took 20 days to sell a single-family home listed for $485,000. Meanwhile, in December 2021 it takes 18 days to sell a property listed for $549,000
- The median price increased by approximately 13% comparing December 2021 to 2020
- From July to November of 2020, the inventory was for 4 months and in December 2020 the inventory was for 3 months. Now since July 2021, the inventory was for 3 months until December when it was for 4 months. We can interpret different positions, for example, Buyers are delaying the process of purchase and inventory is slowly increasing. Please remember that these numbers are macro information inside of Miami Dade county. We have different zip codes with high demand and this information is important to analyze to evaluate how the market is performing if you are planning to sell.
Condos, villas, townhouses, and Co-ops Market
- The number of cash sales increased 95% this year compared to the last year.
- The number of sales increased 71% comparing 2021 to 2020.
- In December 2020 it took 51 days to sell a price listed for $325K, meanwhile, in December 2021 it takes 35 days to sell a property listed for $384,950
Where are the hot markets?
Single Family Homes
- Homestead 1.2 months’ supply
- Miami Gardens 1.6
- Cutler Bay 1.8
- Coral Gables 1.9
- Kendall 1.9
In Condos, townhouses, villas, and co-ops
- The Hammocks 1.3
- Homestead 1.8
- Kendale Lakes 1.8
- Kendall 1.9
- Hialeah 2.1
Should I buy a home in 2022?
If you delay this decision, it may cost you because you will most likely have to pay more for a property, a higher interest rate, and your mortgage payment will be higher.
