Miami Real Estate Learning Center

INVENTORY SHORTAGE FOR THE HOUSING MARKET

The housing market in the United States is facing a serious inventory shortage, meaning there is nothing to sell or buy any longer! The number of homes on the market has been falling every year for the past 5/6 years. Despite predictions that inventory would start to climb as builders completed more new homes, many markets are experiencing historic lows in inventory.

One reason for this is that many homeowners, including myself and you I hope, were able to lock in record low-interest rates in 2020 and 2021, and are therefore reluctant to sell and buy another home with a much higher rate. This shortage is making house hunting an emotionally charged and painful process for buyers, who must choose between paying a high price for the available inventory or waiting.

This shortage is affecting markets that are typically seen as relatively affordable and may be driving buyers to smaller markets to own a home. Additionally, the influx of investors buying properties to rent is also contributing to the shortage, making the market more competitive, stressful, and challenging for buyers. The shortage is likely to continue as spring, the traditional home-buying season, approaches and mortgage rates continue to rise. So is it easy to be a realtor right now? No, we have nothing to sell. I'm working with at least 10 frustrated buyers for whom I can't get what they want.

HOME PRICES FINALLY DECLINING (a little)

For the first time in 131 months, home prices fell year-over-year, ending the longest price growth streak on record.

There are more new construction projects so the inventory will at some point increase and home price growth will slow down. Despite these trends, the housing market remains highly competitive and challenging for buyers, with bidding wars and limited inventory driving up prices in many areas making it challenging for buyers.

However, the slight drop in home prices from January to February and the prediction of increased inventory from new construction projects suggest that the market may be starting to soften. Nevertheless, the housing market is expected to remain competitive in the near future, with continued demand. Is it maybe a good moment to purchase your dream home? Unfortunately in Miami I can't sell you much....

RISE IN THE COST OF HOMEOWNERSHIP

Property taxes have been increasing across the country, with the median tax bill increasing by over 8% to $2,795 per homeowner in 2021 compared to 2019.

Municipalities rely on property taxes to fund public services such as schools, and tax bills can vary based on how taxes are calculated and the frequency of assessments.

Homeowners who receive higher bills due to factors such as higher assessed home values or the end of some federal stimulus programs can appeal their assessment. To do so, they should review their assessment for errors and ensure that the data is listed accurately. Homeowners can also do their own research on property values in their area by looking at recent sales of similar properties on sites.

If homeowners believe their assessed value is too high, they can get an independent value assessment from a licensed real estate professional or appraiser. An independent property assessment may cost between $300 to $500. Homeowners can also take advantage of tax-relief programs that vary in type and availability depending on the state and county they live in.