Inbound New York Buyers Boost Miami Soaring Home Sales in August

According to the Miami Association of Realtors, Miami-Dade County total home sales surged in August 2020.

Miami-Dade County total residential property sales jumped 6.4% year-over-year, from 2,374 to 2,527. Miami single-family home sales jumped 16.6% year-over-year, from 1,164 to 1,357. Miami existing condo transactions decreased 3.3% year-over-year, from 1,210 to 1,170.

“Pent-up demand, historically low mortgage rates and the robust fundamentals of the South Florida housing market is leading to increased buying activity,” Miami Realtor’s Chairman of the Board Jorge L. Guerra Jr. said. “South Florida real estate activity is now stronger than it was before the impact of the pandemic. We expect this trend to continue as a result of strong demand for housing and very low interest rates.”

Pent-up demand has led to an increase in mortgage applications locally and nationally. Mortgage applications to purchase a home rose 3% last week from the previous week and were a stunning 40% higher from a year ago, according to the Sept. 9 Mortgage Bankers Association’s seasonally adjusted index.

The COVID-19 situation has accelerated the trend of homebuyers from New York and cold weather and tax-burdened Northeastern states searching and purchasing homes in South Florida.

Before the COVID-19 situation, the Miami-Dade market was exceptionally strong. Miami real estate had record low delinquencies, no subprime mortgage crisis, strong demand/low supply, low interest rates, strong population growth, demand from foreign buyers and tax refugees from tax burdened states, high consumer confidence and a strong job market. Read more
Source: World Property Journal