They predict that Miami will be one of the most sought after real estate markets in the United States in 2023
According to the projections made by the specialized page Zillow, it is one of the few real estate markets in the country in which prices do not have decreased with the increase in interest rates
Soledad CedroFrom Miami , Florida, United States
Miami ranked eighth among the most sought after real estate markets "hot" of the United States, according to a report by Zillow REUTERS/Marco Bello/File Photo
In an attempt to control the historical inflation in the country, The Federal Reserve authorities have considerably increased interest rates for mortgage loans in recent months. From interests that were around 2.5 percent, today we see rates of almost 7 percent. Unsurprisingly, this has discouraged millions of people looking to buy a property in the United States with credit and has caused property prices to stagnate or even fall.
Almost everywhere what logic indicates happened, except in the most sought-after markets in the country where prices remained the same, or continued to rise, regardless of interest rates.
The City of Miami, in South Florida, stands out among those “hot” markets in which financial variables do not seem to alter the desire of buyers.
The report mainly analyzes that the value of properties does not has fallen since interest rates rose REUTERS/Sarah Silbiger/File Photo
Real estate website Zillow conducts a annual forecast of markets across the country that analyzes the top 50 real estate markets in the United States, in terms of price, inventory, jobs and other demographic data.
According to the report, the city of Miami was ranked number 8 among the most sought-after markets, where since the rise in interest rates property prices have continued to rise or, at least, have remained stable the same.
“The record growth in property prices in the country ended in 2022, mainly because we are seeing the highest interest rates on mortgage loans since 2008. But the reality is that what happens varies according to the market. In cities like Miami, for example, we have seen an almost zero decrease in the value of properties or even in some months there has been an increase in the price”, indicates the report published by Zillow.
The signs of cooling in the market have been seen strongly in some of the largest cities in the country, such as Denver -in Colorado-, San José and Sacramento -in California – or Minneapolis -in Minnesota-.
Another important factor is that properties continue to sell fast REUTERS/Marco Bello
Another factor to take into account for the cooling of the market, in addition to the price, is the time that a property is on sale remains on the market.On average, properties usually take about two months to sell. During the peak of property sales in the pandemic, there were homes that were sold in two days. Today, Miami continues to be a very fast market, while other cities are already seeing properties for sale for about six months.
Top 10 cities with real estate markets According to the report, the most valued in the country are:
1. Charlotte, North Carolina
2. Cleveland, Ohio
3. Pittsburgh, in Pennsylvania
4. Dallas, Texas
5. Nashville, Tennessee
6. Jacksonville, Florida
7. Kansas City, in Kansas
8. Miami, Florida
9. Atlanta, Georgia
10. Philadelphia, Pennsylvania
Needless to say, property is still much more expensive in cities like New York, San Francisco, Los Angeles or Miami than in Charlotte, Cleveland or Pittsburgh.