Historically low mortgage rates have increased house sales in South Florida

Dated: October 24 2020

Views: 180

Historically low mortgage rates have increased house sales in South Florida

For the first time since the Corona Virus outbreak was declared a pandemic in the US, South Florida’s housing market has surpassed its total home sales in comparison to 20191 . According to the Miami Association of Realtors August report2 , there was an increase of 6% in sales from August 2020 to August 2019 in Broward and Miami-Dade

This increase in real estate acquisition may be related to the mortgage rates hitting historical lows. According to Freddie Mac3 (the Federal Home Loan Mortgage Corp.), earlier in September, the 30-year fixed-rate mortgage averaged 2.86 percent. It is the lowest rate since 1971, when records for this began. In comparison to 2019, during the same period one year ago, the rates averaged 3.56 percent. 

House sales have skyrocketed in the recent months with these unique conditions. With the local housing market in short supply, median price for single-family homes have surpassed the $400,000 mark in both Broward and Miami-Dade County. Buyers have been showing more interest in acquiring single-family homes over condo houses, as families seek to have bigger places without too many neighbors nearby.

Fort Myers Home

According to Sam Khater, Freddie Mac’s Chief Economist, “These low rates have ignited robust purchase demand activity[...] However, heading into the fall it will be difficult to sustain the growth momentum in purchases because the lack of supply is already exhibiting a constraint on sales activity.” 

Whether you are looking for a single-family house or condo, now is the best time to invest in your dream home. John Santos, Broker at Agent Plus Realty, talks about how unlikely it is to have rates as low as they are now. 

“If there is a better time to invest in Real Estate, it is now. Historically low mortgage rates means you will pay less over time for your dream home then you would if you invested one year ago. This global crisis we are living in has affected all parts of the country, including Real Estate. Last time we had rates this low were almost 50 years ago.”

Whether you are looking for a home to live or a place for your business operation, Agent Plus Realty has you covered. With years of experience in the market and well-trained agents, you will find the best opportunities around South Florida. 

Sources

1 Home sales surpass August 2019 closings in South Florida, Miami Herald, 2020. https://www.miamiherald.com/news/business/real-estate-news/article245926460.html 2 South Florida market stats, Miami Realtors, 2020. https://www.miamirealtors.com/news/south-florida-marketstats/august-2020/#1569530848291-b9a19666-aef7 3 Mortgage rates hit another all-time low, Yahoo Finance, 2020. https://finance.yahoo.com/news/mortgage-rateshit-another-time-140000709.html

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