According to a recent report by local real estate experts, The Leonard Real Estate Group, the average listing price for a Miami Springs single family home now exceeds one million dollars. Their most recent report showed just 19 active listings with an average listing price of $1,115,079.
Now, we all know there can be a difference between listing price and sold price. The Leonard Real Estate Group shared the average closed sale price for the 27 most recently sold homes. The average price for a closed sale was $742,578 or about three quarters of a million dollars.
As The Leonard Real Estate Group reported, affordability is a challenge. Here’s what they shared this week:
There are nineteen (19) active listings in the MS/VG market this week—a slight increase in inventory since last week. More increases in the months ahead? Anything is possible in this unique and unpredictable market. One (1) pending sale this week, and values remain strong in Miami Springs and Virginia Gardens. Despite interest rate increases, there are still many qualified Buyers out there. With tighter inventory and continued high demand, the market has been transitioning back to a Sellers’ market…
Nearly half of the active listings are over one million dollars. Two are listed for more than $2,000,000!! Five (5) of the active listings have had a price reduction; one this week. We had been transitioning to a more neutral market. However, the continued tight inventory and demand, despite higher mortgage rates, gives Sellers an advantage and makes it difficult for Buyers. Although, things may start to slow down! Expected interest rates increases in the future can mean fewer buyers. We still anticipate more inventory increases.
Homeowners are sitting on cash.
Current homeowners may be sitting on a wealth of cash. Due to the rising property values, homeowners in Miami Springs may have significantly more equity in their home than they may have had 10 years ago.
Of course, with higher interest rates, residents may be hesitant to pull out that cash. Some may be waiting on lower interest rates.
Nevertheless, there are many Miami Springs homeowners that can boast of real estate holdings approaching, if not exceeding, one million dollars.
Location, Location, Location
Miami Springs boasts one of the most central locations with easy access to all that Miami has to offer. We’re just minutes away from America’s most beautiful beaches. We’re just minutes away from world class shopping and entertainment. We’re just minutes away from some of the best paying jobs in downtown Miami. And for the jet set crowd, we’re the closest neighborhood to Miami International Airport.
Oh, and when you want to get away from it all, Miami Springs provides you with one of the quietest and safest neighborhoods in all of Miami-Dade County.
Unfortunately, what many of us have enjoyed our entire lives is becoming increasingly more expensive and less affordable. The dream of owning a single family home in Miami Springs is becoming a harder reach for middle income earners. This is going to create gentrification where only wealthier people are able to buy a detached single family home.
Will prices continue to go up? Who knows. Inflation is a double edged sword. It’s weakened the value of the dollar causing prices to go up everywhere. However, it’s also caused interest rates to go up. That’s preventing many would be buyers from jumping on the market. The higher interest rates are also preventing some from selling. Someone who has a mortgage at 3% doesn’t want to buy a new house with a mortgage at 8%.
Yet, lower interest rates could also drive more demand and thus heat the market even higher.
We’ll see how this plays out in the long term, but for now, most Miami Springs homeowners are holding on to their evermore valuable properties.