Market predictions for 2023: what you should know before the year begins

 

The real estate market jumped in value during 2022, with prices for homes rising in many states. However, a different picture is on the horizon for the following year.

What will happen after the holidays, and could we see other changes?

According to the Federal Housing Finance Agency's Home Price Index (FHFA HPI), U.S. residential property values increased by 17% from the second quarter of 2021 to the same period this year.

In addition, compared to the first quarter of 2022, a 4% increase in home prices has been reported. However, starting in June, experts noticed that the monthly data trends began to slow down.

William Doerner, supervisory economist in FHFA's Research and Statistics Division, said that after prices rose rapidly through most of the second quarter, the pace of growth began to slow in consistency with other recent related data.

Although the data pointed to the highest extreme since last year, experts predict a turnaround in home prices looming in 2023.

Economic research firm Capital Economics stated that the significant increase in mortgage rates in the U.S. will have an impact on the average expense a buyer must cover when purchasing a property.

Mortgage rates soared after the Federal Reserve (Fed) announced an increase in the benchmark interest rate. As a result, now, those planning to invest in residential property must spend more than a quarter of their annual income on mortgage payments alone, Capital Economics showed.

Other factors that may play a role include higher interest rates and high construction costs that exclude many prospective buyers.

As a result, both the construction industry and the real estate industry will see a sharp downturn next year.

In addition, according to the National Association of Home Builders (NAHB), the supply of single-family properties will decrease in 2023 to cope with upward price pressure, as construction was also predicted to experience a decline next year.

Many buyers have backed out and have not invested as they had hoped due to high prices.

While the market appears to be more balanced, analysts believe that the rate of home purchases will fall due to rising interest rates and steadily increasing construction costs, as both factors continue to drive away a substantial portion of property buyers.

NAHB Chief Economist Robert Dietz said this would be the first year since 2011 to see a drop in statistics related to single-family homes.

What happened to the fixed mortgage interest rate?

According to mortgage market analysis and outlook website Mortgage News Daily, the interest rate on a 30-year fixed mortgage was estimated at 7.29%, making it the highest 30-year rate in the past two decades.

Experts said no one had anticipated a turn of events of that magnitude, as an interest rate of no more than 5% had been predicted.

Zillow, the real estate market firm, maintained the same forecast on home values in October. However, according to its monthly forecast, the national index of the cost per residential property will increase by only 1.3% in the next year, despite having risen by 12.9% from September 2021 to the same period in 2022.

Analysts anticipate that national home prices will drop by 1.4%, but there will be variations in each regional market.

They also believe home values will fall in 271 of the 896 U.S. regional real estate markets between September of this year and the same month in 2023.

 

The company's latest forecasts showed that home prices are expected to fall to the lowest in the following areas:

The Villages, Florida (6.9%)

Punta Gorda, Florida (6%)

Reno, Nevada (5.57%)

Honolulu, Hawaii (5.56%)

Spokane, Washington (5.52%)

According to the latest projections from real estate analysts, a 5% drop is expected by mid-2023 despite earlier predictions suggesting that property values would remain flat during that period. But prices are not the only thing that could decline, with the 30-year mortgage rate doubling since January, the volume of mortgage applications has also hit a more than two-decade low.

All that you have to know to rent or sell your property in Miami

There are many things to take into consideration if you are looking to rent or sell your property in Miami.

Many people take several factors into account before making a decision, that is why we believe you should consider the following if you want to rent or sell your property:

1.   The location: This is a fundamental factor.

The location of a property will make the difference for people who want to buy your property. If you are close to universities, transportation, shopping centers, or if you are close to the main access roads of the city, you will be able to sell or rent your property much faster.

2.    Be careful with the price. Remember that everything depends on the area where your property is located.

Do not try to set a price above the market, because if you do, it will be very difficult for you to rent or sell your property in Miami.

3.    Expenses: If you are going to rent your property, take the expenses into account.

There are many mishaps or accidents that your potential tenants may suffer. For this reason, before generating a rental contract, take unforeseen expenses or accidents into account.

4.    Remember to have all your papers in order:

Remember to have all your papers up to date, so when the time comes to sign a rental or sale contract for your property, you will not have to wait so long for the paperwork.

 

Take these factors into account and you will see that you will be successful with the sale or rental of your property.

Differences between investing in real estate and buying real estate in Miami

 

Have you ever wondered what the difference is between investing in real estate and buying a property in Miami? Here’s some information for you to take into consideration:

If you would like to invest in real estate, it is important to know how to do it. One of the main differences between investing in real estate and buying real estate is that when you invest, you put market needs before personal interests or tastes.

If you are going to invest in real estate in Miami, make sure to check:

-       The location of the property

-       Nearby services and amenities

-       That the property is in good condition

-       That the property is located in an area with high added value

When you buy a property, your emotions and tastes are involved, whereas when you invest, you take other factors into consideration, like, for example, the square meter price of a property.

Remember that if you are interested in investing in Miami, you should consult a Real Estate Market Report, to know the capital gain, the time on the market, the gross rental profitability, the price-to-income ratio and the price-to-rent ratio.

Advantages of living near good schools.

When you have a family to watch over, moving in becomes even more complicated.

Not only your interests and expectations need to be met; schooling is the most important stage of a child's social development, so choosing the right school is an essential task.

The advantages of choosing a school close to the area where you live are many. Miami has schools with perfect accessibility.

Among the advantages of enrolling children in a nearby school, we can mention:

The time you can save:

It's not just about the time you could save by not having to travel long distances, but also the time you could sleep, how calm you can wake up in the morning, the time you spend for breakfast. Although these details may seem insignificant, they will greatly influence the mood and energy that children have during the day.

Peace of mind:

If you are considering several properties and one is slightly cheaper but it is further from your workplace and the children's school, consider investing in your peace of mind and that of your children. Later they will thank you.

Saving money:

Although distances in Miami are not so exorbitant, eventually, the shorter the distances you travel, the more money you will save money on transportation or gas for the car.

Miami is an excellent city where to educate your children. In fact, Florida is one of the states with the lowest bullying index in all the United States, so we suggest you consider this state to settle with your family.

5 tips for a luscious Miami lawn

By: Henry Walsh

Creating a space that is not only comfortable but also provides essential outdoor access, is an integral part of homeownership. Miami lawns not only add beauty but also put the finishing touches on an entire real estate package. Consider these five tips for a luscious Miami lawn to both sell your home quickly and boost curb appeal.

Clean It Up

This may go without saying, but many homeowners don’t see the unsightly items in their lawn that have gone untouched for months or even years. Take a detailed inventory of your yard and make sure that it is clear of trash, debris, and plant material like twigs, branches, and dead blooms. Cleaning up is the first step to creating a verdant lawn that will become the envy of every neighbor and potential home buyer.

Continue Watering

Miami is known for its ideal climate, making lawns thirsty all year round.  Setting a regular watering schedule for in-ground sprinklers is vital for keeping the lawn green and in optimal health. Consider choosing an extended watering session, 1-2 times per week, to encourage grass roots to grow deep. Doing so will also help your lawn withstand any dry spells in the weather and make it more adaptable to the Miami climate. Watering during the morning hours, usually, before 10 am, is essential. Doing so allows the lawn to soak up as much water as possible before evaporation can occur. Refrain from watering at night as a soggy wet lawn in dark conditions can lead to potential disease and pest infestation.

Green It Up

Many homeowners who put their house on the market want to present the best possible yard for listing pictures and home showings. Using a quick release fertilizer on the lawn will instantly green up the area as well as provide a luscious overall appearance. Quick release fertilizers are usually in spray form and need to be carefully applied to deter any burned areas of the lawn.

Overseed Warm Climate Grasses

According to LawnStarter, the most common grass type in Miami is Bermudagrass, which is a warm-season grass type. Warm-season grass types do well under strenuous heat. However, some varieties can turn brown and go dormant in the winter, creating a problem for residents looking to sell their home this time of year. Overseeding warm season grasses, like Bahia Grass, is an excellent way to green up the lawn during colder months. Use a cool season grass, like Ryegrass, to overseed, encouraging green growth. It is not recommended to overseed St. Augustine or Centipede grass though, as doing so can significantly affect the established lawn.

Keep It Trimmed

Mowing your lawn is incredibly important especially when your home is on the market. Potential home buyers want to see a yard clean-cut and well maintained. Allowing your grass to get long can not only be unsightly but can encourage issues to arise with fungus and pests. Consider mowing the day before a showing or open house to present the best curb appeal possible. If your schedule doesn't allow for regular mowing, try hiring a lawn care company that can do the work for you while your home is on the market. Keeping your lawn in top condition can bring a better offer as well.

Creating a lush lawn in Southern Florida is simple with these five tips. Make sure to clear your yard, and to continue water and mow the lawn on a regular basis. Use a quick release fertilizer to brighten lawns during the growing season and consider overseeding some warm-season grasses during the dormant winter. Each of these five tips will help boost your home’s overall value and increase dier curb appeal when selling your home.

Why Miami Riches will be the best partner for Property Management?

Getting your first home is probably one of the greatest feelings in a person’s life, but there are some things that take first-timers by surprise and that can complicate things a little bit. The maintenance costs (regular and preventive), monthly fees, finding tenants, and all the expenses that come since day one when you buy a property can become a major headache, and it isn’t even a money issue, but time instead.

Even if you are not a first-timer and you’ve been through this whole experience before, and you are thinking about buying a second property, what might change your mind is the thought of dealing with all the responsibilities. For investors in South Florida, we have good news… Miami Riches will be your partner all the way!

What differentiates us from other real estate companies in South Florida is the commitment we show through the whole buying/selling process. Even after the deal is done, we continue working with our clients; managing their properties and handling all the responsibilities and legal matters, working as intermediates if you are renting your home, and optimizing all the expenses to make sure that you save money and maximize your revenue. Why should you work with Miami Riches? Here’s the answer:

About our property management service:

1.      For starters, we will go through a screening process to help you find a really good tenant who pays on time, rent for a longer period of time, puts less wear and tear on the unit, and overall, one that causes less problems.

2.      We will also save you a lot of time by handling everything that may cause you any legal problem. Evictions, inspections, lease addendums, terminating leases, and handling security deposits are matters that can take a lot of time, and if they are not managed correctly, they can become a headache.

3.      Shorter vacancy cycles. Keeping your home occupied is a priority, but it’s easier said than done. We will market your home effectively, we will give you some advice on how to improve your home (cosmetically) so you can maximize your revenue, and what’s most important, set an adequate rent price (not so high that you will scare off potential tenants, but not too low either).

4.      We guarantee a regular cash flow by collecting the tenants’ monthly payments. We work as intermediates the whole time, so you probably won’t have to interact directly with your tenants unless there’s an out-of-the-ordinary situation.

5.    Fewer taxes are always good news for homeowners, and that’s definitely one of the best features of hiring our property management services. We will help you gather and organize all the documentation required for this process.

Our experience and professionalism will help you achieve all your financial goals, and in record time too. If you are a first-timer or if you already have some experience in the real estate market, our services will suit you perfectly. Contact us anytime and ask about our property management services.

Photo taken at: http://bit.ly/2y1q0nd