The housing market breathed a sigh of relief this week as interest rates dropped to the lowest amount since September, causing an incredible 27% increase in mortgage applications across the country and also here in Miami. The rates are averaging right around 6% down from 6.3%, which can save buyers $300/mo on their mortgage. Many buyers have been able to lock rates below 6% so make sure you’re talking to the right lenders.
Historically, January is a slow month for real estate sales. However, sales plunged this month, recording 3,773 closings, the lowest number of closings in Miami Dade County recorded in the past 10 years!
The combination of higher interest rates and continued low inventory are the root of the low sales. Inventories today are 27% higher on a year to year basis but are still at only 60% of what they were in January 2020 (see chart below) Right now, Buyer activity is on the rise and we are entering into the traditionally busier months of the year so we can expect this activity to translate into contracts. Experts around the country are predicting a strong real estate market this Spring.
Commercial leasing activity hit 1.8 million square feet during 2022, contributing to a record low vacancy rate of 3.3 percent in January 2023.
As a result, landlords increased the average asking rent to $44.16 a square foot, translating into a nearly 3 percent increase from the preceding quarter.
Simon Property Group is fresh off a leasing spree at Dadeland Mall in Kendall. Seven new are up and running and six more are set to open for a combined 24,000 square feet at the mall at 7535 North Kendall Drive.