Miami Real Estate Market Predictions 2023- What to expect?November 24, 2022
Miami Real Estate Market Predictions for 2023
The national real estate industry has kept up with Miami’s news. The Fed’s decision not to tighten the US housing market may lead to markets in other parts of the country acting independently. The next twelve months will see a shift in the direction of the market. There will be lower interest rates and more activity. It is impossible to predict what Miami’s real estate market will look like in the future. However, it is possible for some to see what the current market has in store. Below are the Miami real estate market trends that are most likely to continue into 2023 and beyond.
Miami’s median house price has increased by 27.4% in the past year.
This was due to the pandemic’s supply and demand limitations. However, it’s not clear that the same indicators will not drive prices higher in the coming 12 months. While there is no doubt that demand is declining due to higher mortgage rates and a possible recession, the city’s 25.2 week supply is not enough to meet the demand. Housing shortages could lead to home prices rising by 2.0% more by 2023.
- Miami foreclosures are expected to rise:
Miami foreclosures are on the increase. Unlike the past when government assistance and moratoriums were ineffective in stopping lenders from initiating foreclosure proceedings on delinquent owners, this assistance is now available. The moratoriums will expire, and owners will have to pay their payments on time. Miami was the city with the highest number of foreclosures in the third quarter 2022. The trend is expected to continue as the increasing threat of recession will likely increase the number delinquent homeowners in the region. Although it is impossible to predict how many foreclosures Miami will experience in 2023, it is safe to assume that there will be more.
- Renting properties is the best investment strategy.
Home price appreciation has reduced profit margins and made rehabs less appealing to investors. The same indicators that have lowered profit margins for flips also made rental properties more appealing. Particularly, rents in Miami have increased faster than home values recently. Even more important, rents should continue increasing as long as home values do. Landlords stand to reap the benefits of a larger renter pool and fewer people. Feel free to contact us about Miami Homes for Sale.