Home sales decline in Miami due to high market prices

The housing market in the United States suffered a sharp decline in 2023, with the number of used home sales the lowest in nearly three decades. And Miami is one of the cities most affected by the crisis, inflation and high prices in the real estate market.

According to the local press, the factors explaining this decline in home sales and purchases in Miami and the rest of the country are the increase in the cost of housing and mortgage lending, as well as a shortage of supply, which means many Americans do not have access to purchase. Find and continue living on rent.

The National Association of Realtors (NAR) indicated this week that 4.09 million used homes were sold last year, down 18.7% from 2022. This is the lowest level since 1995 and the largest annual decline since 2007, when the sector collapsed. The beginning of recent years.

The average home price nationwide rose a little less than 1%, reaching a record high $389,800On average, according to NAR.

Home prices rise in Miami and the rest of the country

The decline in sales in 2023 adds to an 18% decline that was recorded in 2022, when mortgage interest began to rise, doubling at the end of that year. This trend continued through 2023, bringing the average rate on a 30-year mortgage to 7.79% at the end of October, the highest level since the late 2000s.

The sudden increase in mortgage loan costs, coupled with years of rising home prices, has reduced the purchasing power of Americans interested in purchasing a home. The lack of available homes has kept many potential buyers or sellers away from the market.

Although mortgage rates have generally declined since November, this week the average rate on a 30-year mortgage loan was 6.6%. The situation does not seem to be improving in the coming months.