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Buying a home is one of life’s biggest decisions, and it remains at the heart of the American Dream. Unlike renting, owning a home means more than just having a place to live – it offers a sense of belonging, stability, and freedom. According to CNN Business, in 2023, around 4.5 million people achieved that dream of buying a home. However, if you live in South Florida, you know that buying a house can be an overwhelming and expensive journey.
While mortgage rates remain at a two-decade high, Miami-Dade County has continued to lead the U.S. in home price appreciation, according to a December 2023 report from the Miami Association of Realtors. Another report from Rocket Homes disclosed that in March 2024 the median home price in Miami was $540,091, up 6.9% over last year. So with higher mortgage rates and increased prices, is it any wonder why it is so difficult to achieve the American Dream of becoming a homeowner?
Economists are forecasting mortgage rates will decline during the final two quarters of 2024, but uncertainty persists. Rather than sitting on the sidelines, many successful buyers are choosing to navigate the housing market by setting priorities and investigating financing alternatives to help maximize their buying power. Miami-based Educational Federal Credit Union has seen a recent uptick in interest from buyers looking for an alternative to a traditional 30-year fixed-rate mortgage who want to increase their buying power and keep payments as low as possible.
“Some homebuyers are getting priced out of the market because of the higher rates on 30-year fixed-rate mortgages,” said Mayelin Carbajales, Director of Home Loans for Educational Federal Credit Union (EdFed). “That is why many individuals are looking at alternative loan types that offer lower payments that fit within their budget.”
Another factor that successful buyers often have in common is choosing a realtor that understands the complexities of financing a home in South Florida, where cash buyers can dominate some segments of the real estate market and inventory remains constrained. The MIAMI Association of Realtors reports that cash sales represented 42.6% of Miami’s closed sales in January 2024 as compared to 32% of home sales made in cash nationally, according to the latest National Association of Realtors (NAR) statistics.
“You have to make certain you have your financing secured before you begin working with a realtor. We focus on getting individuals pre-approved first and can match them with an experienced agent in our preferred realtor network that really knows the local market and helps give them an edge in negotiating against cash buyers,” added EdFed’s Carbajales.
While 2024 may still yield unexpected challenges in the housing market, the dream of home ownership remains top of mind for many in South Florida. Doing your homework, setting priorities, and finding the right financing will help you move from the sidelines to the finish line in purchasing your new home.
Join EdFed’s free Home Buying webinar on Saturday, June 1 from 11:00 a.m. to 12:00 p.m. to learn about the home buying process, financing solutions, and how EdFed can help you save money when financing your new home. Register today at: www.edfed.org/webinar.
About EdFed
Established in 1935 by school employees in Miami, EdFed is a not-for-profit financial institution that serves more than 100,000 members with a full range of lending and deposit solutions. With more than $1.6 billion in assets, EdFed is headquartered in Miami-Dade County and operates seven branches across the area.
