HURRICANE IAN'S DAMAGE TO REAL ESTATE
After the storm, some people living on the West Coast and, more precisely in Fort Myers, lost their houses. In light of the situation, residents don't know how to react.
They think about short and long solutions for themselves and their family. While some people rent Airbnb's, others consider buying or renting. Nevertheless, if a lot of people decide to invest, we will experience a new bidding war. Indeed, the rise of demand can lead to an increase of property prices. The Florida Housing Coalition had estimated at the beginning of 2022 that the State was missing about 500,000 affordable homes. This means that even before Ian the housing situation was difficult so this hurricane is pulling on already tight strings.
Not everyone can pay a night at $169 in a hotel or afford a million-dollar condo. In some areas rents have more than doubled.
What are the other options? The two most suitable solutions are to relocate to another State or somewhere else in Florida. Indeed, moving to the inlands of Florida could be suitable. Hurricane refugees consider this alternative while waiting for their flood insurance response. They await to know which amount the insurance will cover and refund them.
6 REAL ESTATE FACTS FOR 2022
Since I've heard a lot of feedback on the real estate market lately, let's sit down and gather some data. I have analyzed for you the real estate market and its future tendencies. Please bear in mind these comments are nationwide, Miami can be slightly different.
These are the 6 facts that affect real estate at this time:
Mortgage rates are at a peak
On September 1, the average 30-year fixed mortgage rate reached 5.66%. This rapid increase is due to the actions of the Federal Reserve. Even if the Federal Reserve doesn't choose mortgage rates directly, it significantly impacts its evolution. The Fed policy seriously affects the 10-year Treasury yield, which affects the mortgage rates.
Property sales are slowing down Between June and July, the new single-family sales rate dropped by 12.6%. Moreover, the days on the market for a property to sell has risen by 12.5% in one year.
Prices are consistently strong The median existing-home price in July 2022 is 10.8% superior to 2021 nationwide.
New construction is slowing down There is less construction because builders don't know how the demand will evolve. Developers' fear is linked to a fall in demand and to the variation of construction costs.
New listings are not coming up as frequently
There were 132,649 less new listings in September compared to July. Two reasons can explain this trend. Firstly, due to price stagnation, there are fewer potential sellers. Secondly, the labor market is in good health. Thus, people don't want to sell their houses.
Rental prices are higher Rental prices have flinched for two years. In July, the average monthly rent was $2,031, namely 13.7% from a year ago. For the moment, since mortgage rates are high, we don't forecast a price decline.
THE MOST POPULAR CITIES TO RELOCATE TO
This year, I have noticed a considerable number of potential U.S buyers ready to leave their homes and relocate to a new city.
People are looking for new ways of living. The rise of remote working has motivated this tendency. Florida, California and Texas are the 3 most popular states to relocate to.
Indeed, people seek a warmer place, especially in mid-summer. Florida, and most precisely Miami, are welcoming more and more U.S citizens. The ranking of the most attractive city is for 2022 are:
- Las Vegas
- Cape Coral
- San Diego
- North Port
- San Antonio
San Francisco, Los Angeles, New York, Washington D.C and Seattle are in the top 10 places homebuyers seek to leave. Typical house prices have become too expensive. For example, the average cost for a standard place in San Francisco is at least $1.5 million.
OCTOBER CALENDAR IN MIAMI
The high season has just started in Miami, and tons of events are ready for locals and tourists. Let's see all the activities :
SOUTH BEACH SEAFOOD FESTIVAL [OCTOBER 19-22]
Participate in the 10th Annual South Beach Seafood Festival. Come to eat a tasty collection of seafood dishes cooked by leading chefs.
MIAMI AUTO SHOW [OCTOBER 15-23]
Come to live an interactive experience in one of the most famous weeklong fair trades of the biggest car manufacturers.
SPOOKY WONDERLAND [SEPT 15 - OCT 30]
Once again, the haunted circus returns to Miami to get everyone in the Halloween mood. Discover the surprises it holds.
OUTDOOR CONCERTS AT THE ARSHT CENTER [OCTOBER 6-16]
The Arsht Center welcomes music lovers for a series of outdoor concerts. There is something for everyone.
HALLOWEEN [OCTOBER 31]
Experience your most fantastic Halloween ever in Miami, with costumes, surprises and candies as much you want.
3 bed/3.5 bath corner unit
Gorgeous bay and ocean views
Maintenance fees $1,840/month
Gorgeous sunset and sunrise views