In an attempt to control the historical inflation in the country, The Federal Reserve authorities have considerably increased interest rates for mortgage loans in recent months. From interests that were around 2.5 percent, today we see rates of almost 7 percent. Not surprisingly, this has discouraged millions of people looking to buy a property in the United States with credit and has caused property prices to stagnate or even fall.
Almost everywhere what logic indicates happened, except in the most sought-after markets in the country where prices were stable, or continued to rise, regardless of interest rates.
The city of Miamiin South Florida, stands out among those “hot” markets in which financial variables do not seem to alter the desire of buyers.
The website specialized in real estate, Zillowmake a annual forecast of markets across the country analyzing the top 50 real estate markets in the United Statesin terms of price, inventory, labor and other demographic data.
According to the report, The city of Miami was ranked number 8 among the most sought-after markets, where since the rise in interest rates property prices have continued to increase or, at least, have remained the same.
“The record growth in property prices in the country ended in 2022, mainly because we are seeing the highest interest rates on mortgage loans since 2008. But the reality is that what happens varies according to the market. In cities like Miami, for example, we have seen an almost zero decrease in the value of properties or even in some months there has been an increase in the price”, indicates the report published by Zillow.
Signs of market cooling have been seen strongly in some of the largest cities in the country, such as Denver -in Colorado-, San Jose and Sacramento -in California- or minneapolis -in Minnesota-
Another factor to take into account for the cooling of the market, in addition to the price, is the length of time a property for sale remains on the market. On average, properties usually take about two months to sell. During the peak of property sales in the pandemic, there were homes that were sold in two days. Today, Miami continues to be a very fast market, while in other cities you can already see properties for sale for about six months.
The ten cities with the most valued real estate markets in the country according to the report are:
1. Charlotte, North Carolina
2. Cleveland, Ohio
3. Pittsburgh, in Pennsylvania
4. Dallas, Texas
5. Nashville, Tennessee
6. Jacksonville, Florida
7. Kansas City, in Kansas
8. Miami, Florida
9. Atlanta, Georgia
10. Philadelphia, Pennsylvania
It should be clarified that the ranking does not evaluate the cost of the properties, but how required they are and the few changes in the market. Needless to say, property continues to be much more expensive in cities like New York, San Francisco, Los Angeles or Miamithan in Charlotte, Cleveland or Pittsburgh.
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