More homes are sitting on the market longer in South Florida, and experts say the housing market may finally be cooling after years of soaring prices and tight inventory.
Listings are now staying up for about 90 days, compared to 60 or fewer just a few years ago, according to Andrew Vogel, a loan officer with First Trust Capital.
Though prices remain high compared to pre-pandemic levels and mortgage rates are hovering around 7% for 30-year fixed loans, Vogel said it’s still a good time to buy.
Rising rates, slower sales
“It’s cooling because there’s increased inventory also right now in South Florida, so there’s a lot more houses on the market, it’s a little more competition,” said Vogel.
He added that while rates are high — up from 5% just a few years ago — buyers could still benefit in the long run.
“If the rates are a little bit higher and you can get in on a house that has a lower price, maybe do a mortgage that might be for a year or two, you can always refinance into a lower rate,” Vogel said.
Buyers still waiting
Samuel Tuckerman, who grew up in Miami and now rents in Bay Harbor with his wife and one-year-old daughter, is among those still hoping to buy.
“We were looking to buy anywhere in Miami that can provide a good value but it’s very tough as you can imagine,” Tuckerman said.
He explained that they nearly bought during the pandemic but held off — a decision that may have cost them.
“We were close to buying around COVID, we decided not to buy and then that’s when the boom happened, so we might have missed our opportunity at that point but we’re still looking,” he said.
Tuckerman said he’s taking a cautious approach and watching interest rates closely.
“If the Fed does end up lowering rates, I think that will help. I am worried in Miami that that also may increase the home prices, so I really don’t know how it’s going to play out,” he said.
