It is no secret that Miami is one of the fastest growing cities in the US. A hub for technology, innovation, and an unparalleled mezcla of cultural ingenuity, it is easy to see why so many people are attracted to the Magic City.
With the influx of new residents and the overwhelming interest of potential residents, demand has never been so high. This is in large part to low interest rates in the Miami housing market right now. So, the question on everyone’s mind is why are interest rates so low?
Interest Rates and Demand
For those that have been following the current updates from the Federal Reserve you will see that the have been making changes in response to the pandemic. One of these changes include lower interest rates to stimulate growth. Why would they do this? The pandemic has brought about its own challenges and has created uncertainty and economic decline. This means that they’ve made it a bit easier for people to get low interest rates so that borrowing money becomes cheaper and more affordable for homeowners.
Low interest rates also help reduce monthly mortgage payments, which is a good thing. A struggling economy equals lower rates.
While this sounds like a perfect situation, because after all it is reported that interest rates will stay low for a few years as the economy tries to rebound, there is something else to consider.
In South Florida in particular, the interest rates may be lower, but demand is so high that the basic balance of supply and demand is extremely off.
As demand continues to rise especially in residential areas, inventory is just not there. Research shows a a 172.6% increase in total sales from 1,297 in May 2020 to 3,536 in May 2021. Single family and condominium homes are available at a historic low which of course presents a problem if you are looking for home and want to cash in on the low interest rates.
However, all hope is not lost.
Getting with a realtor that knows their way around the Miami real estate is the key to getting ahead of the game and securing the home you’ve always dreamed of. We’ve seen success after success after success, so let us help you get into the right home.