Middle-market homes—ranging from $250,000 to $600,000—have seen substantial increases in sales and median prices, according to a new report from the Miami Association of Realtors. Considered a welcomed trend by experts, this comes as much of Miami’s recent growth in housing has been in the luxury end of the market (homes ranging from $600,000 to $1 million).
A closer look
Total existing Miami-Dade County residential sales decreased 10 percent from 2,039 in 2016 to 1,835 in February 2017. Miami single-family home sales in all price ranges decreased by 10 percent year-over-year, as well, from 979 to 881. But homes in the middle of the market jumped 10.5 percent, according to the Miami Association of Realtors.
The increase is significant because those mid-market homes represent 25.8 percent of all Miami single-family home sales. In a city where most new housing is considered luxury, and where renters pay more of their monthly income on housing than nearly any other city, the spike in modestly-priced home sales is seen as good news.
“Competition for mid-market Miami homes continues to heat up,” Coral Gables Realtor Christopher Zoller said in a press release. “With mortgage rates on the rise, homebuyers have an urgency to lock in rates.”
Median sales price for existing singe-family homes saw a 18.8 increase from $271,221 last year to $321,000 this February. This year marks nearly the sixth year (sixty-third month) that sales have consecutively risen. The overall decline is sales is due to the fact that there are fewer properties available within the most-desired price range.