Local Market Report, Third Quarter 2020 – including the impact of COVID-19 on the local economy.
When you get pre-approved, your lender will estimate how much you can borrow based on the financial information you supply them with. They can give you an idea of what kind of mortgage you can apply for, but they won’t actually verify your information.
When you get pre-qualified, the lender is typically ready to make you a loan once they verify your information, after which you can complete an official mortgage application. The letter says that once you submit the necessary documents and make an offer on a home, your loan will be approved.
Before you fall in love with your dream home, you should probably find out if you can actually afford it. Pre-approval takes the guesswork out of searching for homes when it comes to your budget since you’ll receive, in writing, the exact loan amount available to you.
Getting pre-approved will not only help you discover the maximum that you can borrow, but it will also help sellers take you more seriously in a competitive market. Sellers will be more likely to negotiate a sale with you if you prove to them that your finances are already in place.
Since you’ll need to provide this information to your lender, it’s a good idea to check your credit score and report prior to your pre-approval appointment. The scores will help your lender provide you with the different kinds of loans available to you.
You can get a free credit score and report on sites like CreditKarma.
There are quite a few documents you’re going to have to bring with you to your pre-approval appointment for your lender to verify:
In addition to your financial information, your lender will also need personal information like your driver’s license and social security number, so be sure to bring those along, too.
What does sorting out the conditions mean?? Well, once you have all the information you need, the underwriting system should deliver your pre-approval letter in a matter of minutes with one of four conditions: approved, approved with conditions, suspended, or denied.
If there are more conditions that still need to be met, it probably means that there’s some missing information that they need in order to complete the process. If it’s denied, it might mean that your financial situation isn’t currently sufficient enough to take on a home loan, or maybe you need to work on your credit score.
It’s okay if you have a bit more work to do before getting the letter in hand—your lender will be able to provide you with some advice to help you meet any existing conditions.
Things change, including your financial situation. A typical pre-approval letter will only be valid for 60-90 days after getting it, but since the time frame varies, be sure to ask your lender about it when you apply.
More tips include to start saving early & when you get this pre-approval, it will let you know ow much you can afford. Explore mortgage options. Research first-time home buyer assistance programs. Compare mortgage rates and fees. & choose a real estate agent to meet all you real estate goals.
Working in a team is always going to be our first recommendation, and the team is made up of preferred professionals. We follow a winning approach for those wanting to buy or sell real-estate and share the same beliefs of making every real estate transaction process as simple and stress-free as possible for our clients. We Offer Complete Real Estate Services. Give us a call.
Take advantage of these FannieMae provided financial calculators whether you’re seeking a mortgage now or planning for one in the future.
Download the FREE Homesnap App Connected To Real Time MLS feed.
Miami-Dade County total home sales surged in October 2020 as strong pent-up demand and record-low mortgage rates fueled transactions, according to the MIAMI Association of Realtors (MIAMI) and the Multiple Listing Service (MLS) system.
Miami-Dade County total home sales jumped 16.2% year-over-year, from 2,355 to 2,737. Miami single-family home sales jumped 15.7% year-over-year, from 1,146 to 1,326. Miami existing condo transactions increased 16.7% year-over-year, from 1,209 to 1,411.
“Miami single-family home sales have now posted double-digit, year-over-year increases for three consecutive months and Miami existing condos have posted transaction gains for two straight months,” MIAMI Chairman of the Board Jorge L. Guerra Jr. said. “Robust pent-up demand, record-low mortgage rates and purchases from tax-burdened Northeastern home buyers are fueling a resilient Miami real estate market.”
Miami Luxury Home Sales Surge 122.1% in October 2020
Miami single-family homes priced between $400K to $600K surged 52.5% year-over-year to 424 transactions in October 2020. Miami existing condo sales priced between $400K to $600K increased 46.5% to 145 transactions.
Miami single-family luxury ($1-million-and-up) transactions jumped 122.1% year-over-year to 171 sales in October 2020. Miami existing condo luxury ($1-million-and-up) sales increased 27% year-over-year to 80 transactions.
Record-low interest rates; a record-high S&P 500; the appeal of stable assets in a volatile economy; homebuyers leaving tax-burdened Northeastern states to purchase in Florida (no state income tax); and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties.
107 Consecutive Months of Price Appreciation in Miami. Strong demand coupled with limited supply continue to drive price appreciation in Miami-Dade.
Miami-Dade County single-family home prices increased 19.2% year-over-year in October 2020, increasing from $365,000 to $435,000. Miami single-family home prices have risen for 107 consecutive months, a streak of 8.9 years. Existing condo prices increased 8.5% year-over-year, from $247,000 to $268,000. Condo prices have increased or stayed even in 109 of the last 113 months.
Miami, where the median price is still comparable to 2007 figures, remains a bargain compared to other global cities. In Miami, $1 million can net homebuyers 93 square meters of prime property, according to Knight Frank’s 2019 The Wealth Report. Monaco (16 square meters), Hong Kong (22), New York (31), Los Angeles (36) and others offer significantly less prime land for $1 million.
Single-Family Home Dollar Volume Increases Single-family home dollar volume increased 75.5% year-over-year, from $563.1 million to $988.3 million. Condo dollar volume increased 19.4% year-over-year, from $460.7 million to $549.9 million.
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 2.83% in October, down from 2.89% in September. The average commitment rate across all of 2019 was 3.94%.
Lack of access to mortgage loans continues to inhibit further growth of the existing condominium market. Of the 9,307 condominium buildings in Miami-Dade and Broward counties, only 13 are approved for Federal Housing Administration loans, down from 29 last year, according to Florida Department of Business and Professional Regulation and FHA.
A new condo approval process is expected to increase sales. The new guidance, which went into effect in October 2019, extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The changes, many of which MIAMI and NAR has championed, are expected to generate increased homeownership opportunities.
Miami Distressed Sales Stay Low, Reflecting Healthy Market Only 2.6% of all closed residential sales in Miami were distressed last month, including REO (bank-owned properties) and short sales, compared to 6.4% in October 2020. In 2009, distressed sales comprised 70% of Miami sales.
Total Miami distressed sales decreased 52%, from 150 to 72. Short sales and REOs accounted for 0.9% and 1.7% year-over-year, respectively, of total Miami sales in October 2020. Short sale transactions decreased 13.8% year-over-year while REOs decreased 61.2%.
Nationally, distressed sales represented less than 1% of sales in October, equal to September’s percentage but down from 2% in October 2019.
Miami Real Estate Selling Close to List Price The median percent of original list price received for single-family homes was 97% in October, up 1.1% from 95.9% last year. The median percent of original list price received for existing condominiums was 94.4%, up 0.7% from 93.7% last year.
The median number of days between listing and contract dates for Miami single-family home sales was 28 days, a 44% decrease from 50 days last year. The median number of days between the listing date and closing date for condos was 62 days, down 12.7% from 71 days.
The median time to sale for single-family homes was 78 days, a 17.9% decrease from 95 days last year. The median number of days to sale for condos was 103 days, an 8.8% decrease from 113 days.
National and State Statistics: Nationally, total existing-home sales transactions completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3% from September to a seasonally-adjusted annual rate of 6.85 million in October. Overall, sales rose year-over-year, up 26.6% from a year ago (5.41 million in October 2019).
In October, closed sales of single-family homes statewide totaled 29,659, up 26.9% year-over-year, while existing condo-townhouse sales totaled 12,110, up 30.3% over October 2019. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The national median existing-home price for all housing types in October was $313,000, up 15.5% from October 2019 ($271,100), as prices increased in every region. October’s national price increase marks 104 straight months of year-over-year gains.
The statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year in October for 106 consecutive months. The statewide median sales price for single-family existing homes was $305,000, up 15.6% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $221,000, up 15.9% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Miami’s Cash Buyers Top National Figure: Miami cash transactions comprised 29.3% of October 2020 total closed sales, compared to 32.6% last year. The national figure for cash buyers is 19%.
Miami’s high percentage of cash sales reflects South Florida’s ability to attract a diverse number of international homebuyers, who tend to purchase properties in all cash.
Condominiums comprise a large portion of Miami’s cash purchases as 40.5% of condo closings were made in cash in October 2020 compared to 17.5% of single-family home sales.
Seller’s Market for Single-Family Homes, Buyer’s Market for Condos: Inventory of single-family homes decreased 39.8% in October from 6,548 active listings last year to 3,941 last month. Condominium inventory decreased 8.4% to 14,004 from 15,295 listings during the same period in 2019.
Inventory of active listings has decreased the last 15 months for single-family homes.
Nationally, total housing inventory at the end of October totaled 1.42 million units, down 2.7% from September and down 19.8% from one year ago (1.77 million). Unsold inventory sits at an all-time low 2.5-month supply at the current sales pace, down from 2.7 months in September and down from the 3.9-month figure recorded in October 2019.
To access October 2020 Miami-Dade Statistical Reports, visit http://www.SFMarketIntel.com
Note: Statistics in this news release may vary depending on reporting dates. MIAMI reports exact statistics directly from its MLS system. Brought to you by – MIAMI’s official website http://www.MiamiRealtors.com