The Federal Reserve’s plan to raise rates and end its bond-buying program will accelerate demand for housing in the short-term, eventually putting downward pressure on median home prices, according to a press release from the MIAMI Association of REALTORS® (MIAMI).
The average price of homes continues to rise nationwide as record-low mortgage rates and the increased availability of remote work and education have accelerated the demand for housing. Low inventory relative to high demand leads to prices rising, the release noted.
Miami-Dade County single-family median prices rose 11.7% from the same time last year, increasing from $450,000 to $502,750. The average price of a single-family home in Miami has risen for 120 consecutive months, a 10-year streak.
Existing condo median prices rose 28.1% year over year from $270,000 to $346,000. The average price of condos in Miami has increased in 122 of the last 126 months.
Lawrence Yun, the chief economist for the National Association of REALTORS®, expects the 30-year fixed mortgage rate to increase to 3.7% by the end of 2022, which would still be lower than the pre-pandemic rate of 4%, according to the release.