There has been a lot of uncertainty in the real estate world over the past few years. Like in many parts of the US, Sunny Isles Beach real estate reached an all-time high. With a shift in desire for more space and more access to nature, houses in Sunny Isles Beach were the natural answer for many people.
As we enter a new normal and the market shifts, many people are wondering where the market stands now. Are houses in Sunny Isles Beach still appealing to buyers? What can we expect from Sunny Isles Beach real estate in six months or a year? This is what we are seeing right now and what we can expect in the coming months.
Mortgage rates are soaring and impacting sales
Across the United States, mortgage rates are still very high. They are not quite as high as earlier in the year, but there is no indication that rates will drop anytime soon. Couple this with the inflation that is impacting everyone in the US, and it’s no wonder why it is a stressful time for many people.
With rates still high, the demand for mortgages across the US is at an all-time low. The dips we are seeing right now are the lowest they’ve been in over 20 years, and many buyers are taking a big step back from their home search because it’s simply not affordable anymore.
What does this mean for Sunny Isles Beach real estate? Well, for those who have lived in the area a long time or have no need to finance most of the sale, it doesn’t change much. Those that can reasonably afford houses in Sunny Isles Beach will continue to buy them, as evidenced by the recent sales in the area, including several multi-million dollar condos.
Those looking to upgrade from their current Miami properties and are considering moving to luxury homes on the water may be rethinking their Sunny Isles Beach real estate investments. It’s simply not the right time for new money or unstable investment holders to move to the area.
Inventory is returning
We’re seeing this in Miami Beach more than in Sunny Isles Beach houses, but inventory is starting to return. The lack of mortgage availability is hurting new buyers, and those considering moving to the Miami area are reconsidering their ability to afford it.
Closed sales in South Florida have dropped about 30% over last year, while active listings have jumped nearly 20%. This increase in inventory means buyers have more options than they had this time last year, and there is less of a squeeze on the market.
If you’re looking at Sunny Isles Beach real estate to purchase, this is an excellent time to do so. More inventory means more options and less pressure to move at hyper-speed. In the past year, buyers have had to make serious sacrifices to even place a bid on a home, let alone have it accepted. Now, you can take a moment, breathe, and think about whether a home fits your needs before making an offer. It’s still a seller’s market, and you may face some pressure, but it’s not quite as competitive.
Sales prices are still rising, though
Don't be too concerned if you’re a seller with Sunny Isles Beach real estate. Yes, buyer demand is starting to decline, and yes, inventory is beginning to return. However, that doesn’t mean that it’s a bad time to list.
As mentioned, it’s still very much a seller’s market. Buyers are still very interested in luxury houses in Sunny Isles Beach. In Palm Beach County, the median sale price is still up over 20% from what it was a year ago. Miami-Dade County is also up by about 15%. Despite the increase in inventory, prices are steady and even climbing in most areas.
That’s because prices are not artificially inflated. There isn’t going to be a bust in the market because the prices rose due to authentic demand. While prices in the next six months aren’t likely to climb drastically, Sunny Isles Beach real estate will hold steady. Prices haven’t dropped and won’t in the near future.
So far, no international impact
Some folks might not realize it, but luxury houses in Sunny Isles Beach have been a hot spot for international buyers. There are many reasons for this, but it is mostly considered to be a luxurious upgrade from Miami. You have access to luxury homes, incredible water views, and beautiful weather without the hassle of the Miami area. That being said, you will still have easy access to Miami, and Fort Lauderdale isn’t much further away.
However, the international market is unstable right now. Many analysts predict that Sunny Isles Beach real estate may dip as tighter restrictions come from Europe and the international market experiences rapid changes.
Of course, there is no telling what the future holds, but right now, houses in Sunny Isles Beach will continue to be an international hotspot, and European owners will continue to flock to the area.
Considering moving?
Are you thinking about making a move and investing in Sunny Isles Beach real estate? With inventory returning, now is a great time to dive in and look for your dream home. If you’re ready to start looking, reach out to the RS Team today. Ivan Ramirez and Monica Sarmiento handle some of the best and most luxurious houses in Sunny Isles Beach and understand how this ever-changing real estate market needs to be handled. Whether you’re looking at buying your dream luxury condo downtown or you want to wake up to a beautiful ocean view, the RS Team can make your dream a reality.
*Header photo courtesy of The RS Team
