Le Lézard
Subject: Economic News/Analysis

Redfin Reports Miami Home Prices Are Up 17% From a Year Ago

(NASDAQ: RDFN) ?The median home-sale price in Miami rose 17% from a year earlier during the four weeks ending August 27, the biggest increase the metro area has seen since October 2022. This is according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That's also the biggest increase of the 50 most populous U.S. metros, though almost all of those metros posted year-over-year price gains in August. Prices declined in just six metros, half of them in Texas: Austin, Phoenix, Portland, OR, Fort Worth, Las Vegas and San Antonio.

Nationwide, the median home-sale price rose 5% year over year to $380,000, the biggest uptick in 10 months. The typical monthly mortgage payment hit an all-time high of $2,649.

Home prices are rising due to a severe inventory shortage: The total number of U.S. homes for sale is down 19%, the biggest drop since February 2022, and new listings are down 10%. Supply is low because homeowners are hanging onto their low mortgage rates; nearly all homeowners have a rate below 6%, and rates are now hovering around 7%. The lack of homes for sale is causing competition for desirable homes despite high mortgage rates and a relatively small pool of buyers. Pending sales declined 14% year over year and mortgage-purchase applications declined 27%, hovering near their lowest level in about 30 years. Another reason for the big year-over-year price increase is that prices came down rapidly at this time last year, with rising mortgage rates sidelining buyers.

Miami's outsized home-price increase is a slightly different story. Unlike most U.S. metros, Miami prices never posted an annual drop in the first half of 2023, as elevated mortgage rates were deterring many homebuyers. That's partly because Miami has a supply shortage, like the rest of the country. But it's also because Miami attracts an influx of out-of-town buyers and investors, despite increasing risk of climate-driven natural disasters such as hurricanes and flooding. Those buyers are often undeterred by high mortgage rates because they pay cash; two in five recent Miami homebuyers paid all cash.

Leading indicators of homebuying activity:

Key housing market takeaways for 400+ U.S. metro areas:

Unless otherwise noted, this data covers the four-week period ending August 27. Redfin's weekly housing market data goes back through 2015. For bullets that include metro-level breakdowns, Redfin analyzed the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy. This data is subject to revision.

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-home-prices-increase-miami

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 5,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email [email protected]. To view Redfin's press center, click here.

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