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The luxury real estate market serves a select group of enthusiastic buyers and exhibits its own unique characteristics. So if you are looking to break into this market or decide whether you should be buying or selling a luxury property, you must first understand current market trends. That’s why we’ve consulted luxury real estate experts, who helped us find out the top trends shaping the luxury real estate market today. But first, let’s find out what luxury real estate is.

Buying or selling a luxury property – which way to go?

Defining “luxury real estate” is tricky since market conditions affect the criteria used to describe it. In other words, it means that what passes for luxury in a small Midwestern town would not cut it in a large West Coast metropolis.

Only the top five to ten percent of listings in any market are considered luxurious. Luxury homes in major cities typically have to ask for prices of $1 million or more. The bar is set considerably higher in major cities like NYC. There, the prices usually start at over $4 million.

Pricing in a given area is determined by several factors related to the property’s location, amenities, and layout. While it’s true that a home may be advertised as having a few high-end features, that doesn’t necessarily indicate it should be priced as such. When determining the worth before selling a luxury home, it’s essential to take a holistic approach.

But what is smarter at the moment – buying or selling a luxury property? To answer this question, let’s analyze current trends in the luxury real estate market.

The housing shortage doesn’t affect the luxury real estate market as much

The severe shortage of available homes is a contributing factor to the skyrocketing price of real estate. Unfortunately,there aren’t enough sellers to match the buyers’ needs. However, this is only affecting entry-level and mid-range homes. On the other side, the luxury market is holding up relatively well. In fact, the number of luxury house listings went up by 15.8% in the fourth quarter of 2021 compared to the same period in 2020

Because only a select few people can afford to shop in the luxury sector, sellers often have to wait for months before a serious buyer approaches. Buyers are flooding the market due to the unexpected bull market, and sellers are eager to start a bidding battle.

The year 2021 saw a decrease in housing stock across the board due to increased demand, but the luxury market fared the best. The total number of luxury listings declined by only 5.1% in 2021 compared to 2020, whereas the number of listings for costly, mid-priced, and inexpensive houses all fell by double digits.

Luxury properties tend to sell faster

The luxury real estate market has grown even faster than the rest in the past couple of years. This industry has seen exceptional growth relative to the overall housing market. A year ago, it took three times as long to sell a premium home as it does today.

In 2022, the average number of days on the market for a luxury single-family home was only 11! Also, the sales ratio in the high-end real estate market was 66.42% in February of 2022. Considering that everything over 20% is regarded as a sellers’ market, it’s a great time to sell a luxury property. 

Despite a narrower pool of potential buyers for luxury properties, sales of such properties increased by 41.6% in 2021, compared to 5.9% for mid-priced homes and 7.0% for inexpensive properties.

The market for luxury real estate is the hottest in the South

Knowing how far your dollar will go is a crucial first step if you’re looking to enter the luxury real estate market. And as was previously said, a home’s location is a significant factor in determining its level of luxury.

If you remove the cost of conveniences like parking and storage, the square footage a buyer may afford in Miami is more than double that in NYC. That’s one of the reasons sales of expensive properties rose, especially in the South of the United States. Between 2020 and 2021, expensive Miami real estate sales increased by 101.1%

Tax breaks are also a crucial deciding factor. Since neither Florida nor Texas imposes a personal income tax, residents who make either of them their primary residence may enjoy favorable tax treatment. Southern states typically have lower construction costs, making it more affordable to develop high-end residences there. Plus, you can always count on easily finding and hiring reputable movers to help you have a smooth long-distance move and reach your new home stress-free.

Prices of luxury homes are increasing

A rising trend in home prices is creating new benchmarks for lavishness. The average price of luxury property rose 14.7% from 2020 to 2021. While this shift occurred, the median number of days on the market decreased by 38 days yearly. This is by far the largest decrease relative to all housing categories. Also, homes in areas where prices have consistently risen over the years continue to increase in value.

The popularity of owning a second luxury property is growing 

Historically, the worry that one wouldn’t use a second property discouraged many potential buyers. Due to a lack of vacation time, the secondary residence would sit empty for most of the year, representing an unnecessary outlay of resources.

However, the situation is different when it comes to buying luxury property nowadays. More people can now buy second homes because they are no longer tied down to a single area for work. Today, mountain and coastal resort towns have become common stops on work-related vacations.

Co-ownership is on the rise, too. This is true not just for the affordable housing market but also for the luxury housing market. Some buyers are interested in a second home that provides all the comforts of a luxury residence. Most people who own second homes only stay there periodically, so buying one might be a financial burden unless you become a co-owner with someone else.

So what’s better nowadays – buying or selling a luxury property?

As you can see, buying or selling a luxury property comes with extensive benefits. However, to decide what option is the best for you and your unique situation, make sure to reach out to luxury real estate experts who’ll be able to help. Best of luck!

The Big Story

July sees a huge mortgage rate drop and more inventory on the market

Quick Take:

Note: You can find the charts & graphs for the Big Story at the end of the following section.

Home prices continue to reach new highs even as demand declines

Home prices generally stagnate this time of year, so it’s more challenging to ascribe causation for why price growth has decelerated nationally to economic factors — inflation, mortgage rates, supply shortages, and looming recession — when they coincide with long-term seasonal trends. Historically, prices increase in the first half of the year and flatten in the back half. Prices in 2020 bucked this trend, increasing through October before flattening in the last quarter of the year. Although prices rose much higher in 2021, the historical trend returned. This year has, of course, come with different economic and psychological drivers than 2020 and 2021, especially in the housing market. 
For many, if not most of us, the pandemic brought us largely inside our homes, increasing the desire for larger, nicer private spaces. The mass movement to remote work meant that proximity to an office, usually a primary selling point in major metro areas, mattered less or not at all. Many of us experienced our home spaces, work spaces, and communal spaces becoming one, and realized that the home we usually spent little time in would simply no longer work for us. This need for a bigger space, combined with extremely low-rate financing, a substantial increase in disposable income, and more time to look for a new home created a boom in demand in an already undersupplied housing market. As a result, the median sale price rose higher and faster than any other point in history, up 36% over the past two years according to data provided by the U.S. Department of Housing and Urban Development. For reference, in the eight years preceding 2020, the median home price rose a total of 38%. 
As we know, housing isn’t the only asset to rise since 2020. Nearly everything has become more expensive, and inflation (CPI)*, which has rarely ever risen above 5%, ticked above that mark in the summer of 2021 and has only increased since then. The Federal Reserve, which has a dual mandate of price stability and maximum employment, has one major tool: raising the federal funds rate†. By doing so, the Fed indirectly affects the debt markets, thereby increasing other interest rates, such as mortgage rates. 
In the first half of this year, the average 30-year mortgage rate rose nearly 3%. It’s hard to overstate how significantly that rate increase affects affordability. To hopefully simplify the explanation, we will use a $1 million home that is fully financed for illustrative purposes. For a $1 million home, a 3% increase in interest rates raises the monthly mortgage cost by 42%. It’s fairly safe to say that income hasn’t risen by 42% for most people, which means that many potential buyers are priced out of buying homes, softening demand. For those potential buyers waiting for a correction of the residential real estate market, home prices would have to decline by 30% for the monthly costs to be equivalent — that is, $700,000 at 6% is the equivalent monthly mortgage cost of $1 million at 3%. If the housing market experienced such a large correction, there would likely be much larger concerns in the global economy than home prices. Barring a collapse of the entire financial system, supply would simply be too low for a major correction. Luckily for potential homebuyers, mortgage rates dropped by 0.50% in July, and many economists predict that the mortgage rates will flatten out around 5% even as the Fed continues to raise the federal funds rate. This is partially because the market largely understands and has already accounted for the Fed’s rate hike path, which will continue until inflation begins to meaningfully decline and recession worries wane. 
The economy has felt a little uneasy lately — a classic “will they, won’t they?” when it comes to the recession — but for now, we aren’t technically in a recession because job numbers are too good. Demand for homes has clearly softened, which is fine in a severely unbalanced market. We will likely see less significant price appreciation in the second half of the year due to seasonal norms and higher mortgage rates. The market remains competitive and homes are selling quickly. However, buyers are seeing more inventory than last year, which is good for the market. As always, we will continue to monitor the housing and economic markets to best guide you in buying or selling your home.

—* The Bureau of Labor Statistics (BLS) collects the prices of approximately 94,000 items from a sample of goods and services to calculate the Consumer Price Index (CPI).† The federal funds rate is the interest rate that banks get to borrow from the Federal Reserve. Also known as the Fed’s benchmark rate or the risk-free rate.

Big Story Data

The Local Lowdown — Miami-Dade, Broward, and Orange Counties

Quick Take:

Note: You can find the charts/graphs for the Local Lowdown at the end of this section.

Is the market balancing? Tentatively, maybe!

Median single-family home and condo prices remain at or near all-time highs but it’s clear that price gains are slowing, which is a seasonal norm. These price movements are well within the bounds of normal price variability, but after sustained large price gains, it feels like any downward movement signals a market correction. As mentioned in the Big Story, prices tend to stagnate in the summer and fall months when inventory is at its highest, so we aren’t ringing the alarm bells quite yet. Homes over the past five years have become generally less affordable, yet demand boomed. With 30-year mortgage rates potentially settling around 5%, fewer potential buyers will participate in the market than they did last year when mortgage rates were at all-time lows.
Supply is still historically low, which will protect prices from experiencing a major downturn. Prices will likely follow a similar trend as last year, holding relatively steady through the summer and fall months. If you’re following home prices closely, as we tend to do, you don’t need to worry about losing equity in your home, or softening demand, or even an official recession — so long as it doesn’t affect your job. The housing market remains incredibly strong in the selected Florida counties.

Sales slowdown

Housing inventory had minor increases or decreases depending on the market, but remained incredibly low. We entered 2022 with the lowest inventory in history across markets, and we’ve only seen meaningful increases in Orange County. However, with the substantial drop in sales and new listings from June to July 2022, the peak inventory levels for 2022 will undoubtedly be the lowest on record.
The decline in sales indicates that demand is softening. We aren’t saying that demand is low, but it’s trending closer to balanced between buyers and sellers than we’ve seen in years.

Months of Supply Inventory inches toward a more balanced market

Months of Supply Inventory (MSI) quantifies the supply/demand relationship by measuring how many months it would take for all current homes listed on the market to sell at the current rate of sales. The average MSI is four to five months in Florida, which indicates a balanced market. An MSI lower than four indicates that there are more buyers than sellers on the market (meaning it’s a sellers’ market), while a higher MSI indicates there are more sellers than buyers (meaning it’s a buyers’ market). Currently, single-family home and condo MSIs are low, indicating a sellers’ market, with the exception of Miami-Dade, which has moved toward balanced for single-family homes and condos.

Local Lowdown Data

Brickell is Miami’s trendy, luxurious business sector, home to big international corporations, banks, and prominent law firms. Aside from its significance as a corporate hub, the Brickell region provides a magnificent neighborhood lifestyle with lots of comfort and security. This tropical area, located between Miami Beach and Downtown Miami, has it all. There are several restaurants, bars, cafés, a large shopping center, and a cinema. However, when you want to buy a luxury condo to live in or as an investment, it is still essential to understand where you are investing your money. A neighborhood’s high rates and good amenities shouldn’t be the only reasons to make such an investment. Therefore, let us see if now is a good time to buy a luxury condo in Brickell and why. 

Location, location, location

Why is now and any moment a good moment to invest in a luxury condo in Brickell? Easy, it’s one of the best locations in Miami and even the country! And as you probably know by now, location is the most significant factor in real estate. Moreover, those who invest in a condo in Brickell don’t just buy a place to live. They choose a lifestyle often associated with the water and beaches, with many luxury condos having a beautiful view over the water. At the same time, you have access to everything you might need. Skyscrapers, world-class restaurants, opulent bars, and first-rate public transportation are only a few examples. Not to mention the offices of the country’s top legal firms and the world’s most recognizable financial organizations, which have chosen Brickell as their home.

Growing interest

Miami’s real estate market is thriving, and we don’t see a slowdown in investor interest anytime soon. From its lifestyle to its arts and culture to its mild weather, the metro has risen to become one of the best places in the United States to work, live, and invest in today. Moreover, the luxury residential market will continue to grow as more businesses and people relocate here as part of the business and wealth migration trend. And which is one of the best areas to put your money? Brickell, of course. Brickell has developed from a market to a Miami neighborhood where people wish to live as their primary residence. Furthermore, in terms of renting, tenants’ interest in this region has increased by 30% in the last year. So if you want to buy a luxury condo and rent it, you won’t have problems finding tenants.


Luxury real estate has long been considered one of the most valuable and secure investments. Owning a luxury condo can help boost your game in the real estate market with high resale value and greater awareness of properties, whether you plan to live in it, rent it out, or even flip it. In terms of numbers, house values have climbed by nearly 20% in the last year in Brickell. High competition, low inventory, cheaper interest rates, and larger savings accounts contributed to the increase. However, there is no reason to believe that the same signs will not drive prices upward over the following year. The supply is unlikely to decrease soon, and many people will want to purchase before interest rates rise. That could perhaps lead to another gain in local property values.

As a result, you might want to buy a luxury condo in Brickell now, as it looks like a good time for such an investment. You can then move long-distance to Florida with the help of professional movers and decide what to do with the condo later. If you wish to move and live in the apartment, pros can get you there in no time, along with all your belongings. If you want to rent it, you can just take some of the furniture to the condo and store the rest in a storage unit until you need it.

Easy maintenance and safety

Most luxury condos in Brickell have excellent facilities, fixtures, finishings, and maintenance staff on duty at all times. If you choose the right luxury condo, you might even have the professional staff take care of small things that are time-consuming for you. For instance, they can clean your car, collect the garbage, or even walk your dog when you don’t have the time. 

At the same time, when it comes to safety, living in a luxury home leaves little to be desired. One of the best features of a luxury condo is adequate security, which will make you and your family feel as safe as possible. You will have security personnel in the building or available non-stop, fire alarm systems, smoke and CO2 detectors, and CCTV surveillance. Therefore, money can buy you comfort and safety in Brickell right now.

Ask an experienced broker if now is a good time to buy a luxury condo in Brickell.

A highly experienced real estate broker has not only dealt with many clients but has also spent time developing relationships with respected developers and investors. These connections have the potential to provide you with many benefits. For example, your broker may access offers and deals you wouldn’t find on your own. Whether it is a pre-construction or a condo that is not listed, they will know and inform you about it.

In addition, brokers that work with luxury properties have spent years learning about their market. As a result, they can find you the right condo in the right location and at the right price. And last but not least, your broker can tell you when is the right moment to buy, sell, or rent a luxury condo in Brickell. Professional brokers are constantly analyzing the market so they can speculate on the right moment for any move you might want to make.

Final words

As you can see, there are enough reasons to invest in a luxury condo in Brickell. The market is hot, the interest is high, and the location is one of the best in Miami. Also, if you buy to rent out, you won’t have a problem finding tenants. And in the end, if you care about safety and ease of maintenance, now is a good time to buy a luxury condo in Brickell. 

Selling a luxury home is a challenge on its own, but if you are in a serious time crunch and you’re in a hurry to sell quickly, the stress and difficulty level only increase. Luxury properties tend to have a smaller pool of potential buyersbecause of their unique features. This means that selling your luxury home necessitates a more creative approach to marketing and requires more time and dedication, which you, unfortunately, don’t have. However, it’s not impossible to sell your luxury Key Biscayne property quickly and without damage to its price. In fact, that’s exactly what we’re here to help you with. We’ve consulted Florida’s finest luxury real estate experts and gathered tips that will help you have a smooth and quick sale. 

Tips to help you sell your luxury Key Biscayne property quickly

Selling a luxury home is all but a quick and easy task. In order to make the most of your sale, you need to thoroughly prepare yourself as well as your property. However, due to different life circumstances, you might not have the luxury to take your time and create a thorough selling strategy. You’re forced to handle it in a hurry while also trying to figure out the fastest way to move to Florida and decide which movers to hire. 

But take a deep breath and relax because, if you follow our tips, you can ensure to have a quick and successful sale of your luxury Key Biscayne property. Now let’s get to work! 

#1 Work with a Realtor® that has experience in selling luxury real estate

If you’re selling a luxury home, you’ll want to deal with a Realtor® that has a track record of success in the market. Relying on a team of luxury real estate experts is essential, especially when it comes to pricing and promotion. Most importantly, they’ll know the best ways to help you sell your luxury Key Biscayne property as quickly as possible. 

We’re sure that someone from your personal network can help you discover the finest Realtor®. The more successful luxury property sellers in your area you can find, the more likely it is that you will find someone who is a suitable match for your needs. Don’t limit your search to luxury real estate organizations if you don’t know anyone. Check out their past sales and read any reviews you can discover.

#2 Stage your home to impress the widest range of buyers

Staging your property for sale is crucial to getting it sold since it helps potential buyers envision themselves living there. It’s especially true in the luxury property market, where residences are often fully personalized to suit the owners’ likes. As long as a potential buyer can see the property’s true potential and isn’t swamped by your own particular style, you don’t need to demolish your home to its bare bones.

However, as you won’t have time to turn on your creativity and think of the best ways to present your luxury Key Biscayne property to buyers, consider hiring a professional home stager. They will know how to make the most of their time to emphasize your home’s most unique qualities. Although it might be costly, especially due to the time limit, it’s worth not having your home sit on the market for months.

#3 Boost your home’s screen appeal

Creating an attractive online listing is how the process of selling your luxury Key Biscayne property starts. Keep in mind that poor photography doesn’t fly in the normal real estate market nowadays, so it’s certainly not going to fly here either. You’ll need to spend a lot of money on high-quality images if you want to attract serious buyers. Ask your Realtor® for a recommendation. They might know an excellent professional photographer.

Adding videos and a virtual property tour to your listing will help it stand out from the competition. Suppose your house is situated on a large plot of land. In that case, aerial photography may be an excellent way to show prospective buyers everything they need to know before making the trip out to see it in person. When it comes to appealing to overseas buyers who make up a large portion of the luxury-buying market but can’t necessarily see a home in person, having a lot of pictures is critical.

#4 Determine the right asking price

One of the most difficult aspects of selling a high-end property is determining the right price. Pricing it too high means risking losing potential buyers and having your home sit on the market for months. You really don’t have time for that. On the other hand, pricing it too low means risking settling for much less than your home is actually worth.

Therefore, the key lies in finding a balance, and you can only do this with the help of your Key Biscayne Realtor®. They will help you select a price that reflects the genuine value of your home without scaring away a significant number of potential buyers. They will also understand the sense of urgency and take it into account when helping you set the right asking price.

The bottom line

The best way to ensure you sell your luxury Key Biscayne property quickly and successfully is to work with experienced luxury real estate professionals. They will have market insights and knowledge to ensure your luxury property quickly finds a new buyer. So wait no more; reach out to Florida’s luxury real estate pros and start working with them on selling your Key Biscayne home.

Despite the fact that the Coronavirus epidemic has delayed the investment frenzy of High-Net-Worth Individuals (HNIs), property market recovery has increased the uber-interest affluent in the real estate business. While the industry did encounter a small slowdown last year due to the second wave of COVID-19, it rapidly rebounded, and reports predict that it will continue to grow significantly in 2022. Whether it’s the primary home, a vacation home, or an investment property, HNIs are more than ever determined to invest in it. So, if you’re looking to expand your portfolio, here are the reasons why a luxury home is a great investment in 2022!

It’s vital to remember that not all high-priced properties qualify as luxury real estate. True luxury residences have qualities and features that set them apart as distinctive, exclusive, and more desired than the majority of other accessible alternatives.

Luxurious lifestyle & comfort

Luxury houses in Mississippi, for example, provide exquisite settings on expansive acre lots. Nature is all around, and it provides immediate leisure locations and activities. The beach, towering trees, running streams, bayous and rivers, and dazzling lakes are all close by, with easy access from the property. These outstanding locations also provide unrivaled peace and seclusion.

In addition, many luxury houses, particularly newly constructed or recently renovated buildings, have high-end and high-tech amenities and features. From the home gym, swimming pools, home theater, saunas, and full-on entertainment centers, with luxury homes, you are not just buying a property; you are buying a whole different lifestyle. 

Investment value 

While luxury real estate often has a considerably higher price tag, a recurring tendency is that it also has large increases and declines when compared to homes that are not labeled high-end. When it comes to investing in high-end homes, time is everything, just like it is with any other large-scale investment.

Following the recent real estate market collapse, experts anticipate that the recovery from the recession will be unequal across the United States. They estimate it will take until 2025 for everything to settle down. However, the good news is that if you want to invest in luxury real estate, now is a fantastic moment to do it. The luxury property has a higher possibility of providing a superior long-term ROI.

Another factor is that luxury residences have the advantage of being a performing asset, which means that they serve a functional purpose while growing in value. As a result, buyers consider them to be the ideal investment that guarantees increased earnings. Therefore, the real estate market predictions and latest analysis indicate that a luxury home is a great investment in 2022. Maybe even the best one you can make. 

Unmatched security 

Security is also a significant aspect for most purchasers. Ultra-luxurious residential complexes also ensure that your community, including the individuals who live in your building, are all educated, well-off, and from a solid background. To entice home purchasers, innovators are also stressing top-of-the-line security features in properties. Inventors ensure that luxury home systems have round-the-clock protection, which includes security assistance as well as high-tech gadgets.

Furthermore, people who invest in luxury real estate want to be certain they will have all the privacy and peace they require. They don’t want to deal with people trespassing and bothering them all the time. That’s why gated communities are very appreciated and desired in the luxury real estate market. 

Fortunately, in this day and age, there are some pretty sophisticated security measures in place that will most definitely make your residence secure more than ever before. So, when it comes to privacy and security, a luxury home is a great investment in 2022. 

State-of-the-art technology 

Technology and IT advancements have gone a long way toward elevating the living experience in high-end residences. Most home buyers nowadays seek cutting-edge technology in their homes, which includes entire home automation, solar generators, rainwater harvesting, remote control windows, panel boards, and more. These ultra-luxurious properties offer all of the conveniences that make house purchasers’ lives more comfortable and definitely easier.

These smart homes provide not only comfort but also security and safety. You can control everything in these homes from your phone, and there are even voice-controlled features. Therefore, this is truly a luxurious style of living that not everybody can afford. 

Better neighbors 

The advantages of raising your family in a luxury home go beyond just convenience. Luxury home developments are also viewed as the ideal place for one’s children to grow up and adults to socialize in. After all, such undertakings are really the result of a community with a particular level of culture, education, and beliefs. In other words, if you choose to buy this type of home, you’ll definitely be surrounded by better neighbors. This is an excellent reason why a luxury home is a great investment in 2022. It’s better for your kids and yourself. 

Status symbol 

Many wealthy people want to acquire a nice home because it offers them a sense of pride and prestige. They want to demonstrate to the world that they are living and experiencing the finest lifestyle imaginable. In addition, they have a lot of money, and what better way to spend it than on that gorgeous mansion that everyone wants? They want a house that proclaims their wealthy lifestyle to the world, rather than merely a postal address, which is extremely conventional and common.

After all, these people work hard every day to earn this money, so why not invest it in something that will show how hard they work, right? 

Moving to your new luxury home 

As you can see, the demand for luxury real estate is on the rise, and motivated investors are all over the US, especially in California and Florida. So, if you found the perfect luxury home in Florida for you and your family, you should start planning the relocation process, especially if it’s a long-distance relocation in question. What you should do is find a trustworthy moving company that will help you reach any part of the state trouble-free. After all, you’ve just bought a luxurious home to embrace a more comfortable lifestyle, so the relocation to it should be the same as well. 


The fact is luxury real estate is on the rise, and it doesn’t plan to stop booming. Therefore, if you’re looking for reasons why a luxury home is a great investment in 2022, this article gave you a few pretty solid ideas, from security and privacy to comfort and a guaranteed increase in value. If you’re financially stable enough, there is practically no good excuse not to invest in luxury real estate right now. This is a once-in-a-lifetime opportunity to do something good with all that money. So, what are you waiting for?

Our team is committed to continuing to serve all your real estate needs while incorporating safety protocol to protect all of our loved ones.
In addition, as your local real estate experts, we feel it’s our duty to give you, our valued client, all the information you need to better understand our local real estate market. Whether you’re buying or selling, we want to make sure you have the best, most pertinent information, so we’ve put together this monthly analysis breaking down specifics about the market.
As we all navigate this together, please don’t hesitate to reach out to us with any questions or concerns. We’re here to support you.

The Big Story

Mortgage rate increases slow; housing stays hot

Quick Take:

Note: You can find the charts & graphs for the Big Story at the end of the following section.

Prices continue to rise as mortgage rates hit 13-year highs

It’s become hard to accurately describe the state of the housing market in the face of rising rates, historically low supply, and high but softening demand. Real estate professionals often say the market is cooling to indicate a turn from a sellers’ to a buyers’ market, but that feels like an overstatement. Additionally, some recent articles were published with titles like “Cracks in the Housing Market,” which also may make the reader erroneously think we are headed into a major correction. After much deliberation, we decided to define market hotness with a pepper analogy. The current market is going from the hottest pepper in the world, the Carolina Reaper, to the second hottest, the Trinidad Moruga Scorpion. Yes, the market is technically becoming less hot, but it’s still about as hot as it gets. Ultimately, we believe we are headed toward a steadier state of growth rather than a significant home price reversal. Home prices will still fluctuate month-to-month, which is normal, but they will generally trend higher at a slower pace. A slower growth rate is a healthy growth rate.
In May, home prices increased around 16% year-over-year, which means that prices would double every 4.5 years if that trend were to continue. That kind of rapid growth is simply unsustainable and would eventually lead to a major market collapse. Based on what happened as a result of the 2006 housing bubble, we know that mass wealth destruction is not the path we want to take. The Federal Reserve (the Fed) is actively raising rates to bring down the growth rate by making borrowing more expensive, thereby lowering demand. Luckily, we are starting to see inflation respond to the Fed’s monetary policy, although it is still near a 40-year high.
In 2022, mortgage rates have moved about 2% higher for 30- and 15-year fixed mortgages, reaching 5.09% for the average 30-year fixed-rate mortgage and 4.32% for the average 15-year fixed-rate mortgage as of June 2, 2022. Every 1% rate increase raises the monthly mortgage payment significantly — by about 13%. In this environment of rising rates and rising inflation, all-cash purchases become more attractive because financing is more expensive and money is worth less over time. In the first quarter of 2022, all-cash purchases increased, reaching the highest levels since 1988. Economists now estimate that the average 30-year mortgage rate could climb above 6% in 2022. Because the Fed indicated the path of rate hikes for the rest of the year, we expect that mortgage rates will, at most, reach around 7% this year for prime borrowers.
If it feels like you missed a unique opportunity to finance a home at under 5%, we are sorry to say that you did. However, you are in good company and can still take advantage of low rates. While it can feel like rates are high when they’ve risen from the all-time low of only a few months earlier, a rate of 5% is still historically low. Since 1971 (the start of the data set), we’ve had 2,671 weekly 30-year mortgage data points, only 24% of which reflected rates below 5%.
The market has remained so hot because of supply — or lack thereof. In May, the housing supply ticked up ever so slightly but is still 49% lower than the number of homes on the market in May 2020. We are entering what is traditionally the hottest time of year for the housing market with a record low supply of homes. Through May 2022, which had the lowest inventory on record, home prices increased 15%. The chief economist at, Danielle Hale, explains that the market is about 5.8 million single-family homes short, which means we’re four to five years behind in building new homes. Although single-family housing starts — homes that have begun construction — have slowed recently, multi-unit housing (5+ units) starts have reached their highest numbers since 1986.
If you are considering buying a home, there aren’t many reasons to wait. Home prices and rates are still rising. The low but rising supply continues to make the market extremely competitive. We are starting to see some softening in demand, but not nearly enough to balance the supply side of the market.

Big Story Data

The Local Lowdown

Quick Take:

Home prices continue to rise as new listings meet high demand

Median single-family home and condo prices reached all-time highs in May with the exception of single-family homes in Broward County, which declined from the April peak. After two years of steady home price appreciation, we may be seeing early signs that rising rates are affecting demand. However, in a rising rate environment, buyers are better off locking in an interest rate sooner rather than later. Since the start of 2022, the average 30-year mortgage rate has increased 2%, which equates to a 27% increase in monthly mortgage payments. Yet prices keep moving higher.
One reason that home prices continue to rise is that buying a home is not only a financial process, but also an emotional one. Over the past two years, our homes have become such a large part of our lives, with many of us moving to permanently remote or hybrid work. As more homes come to the market, as is typical in the first half of the year, buyers are more likely to find the home that’s right for them in what’s been an incredibly competitive market. Even with increases in mortgage rates (which, again, are still historically low), it’s reasonable to pay more for the well-being that comes with buying the right home. For most of us, our home is our largest asset and store of wealth, so treating it as such makes sense.

Inventory trends up

Single-family home inventory increased in May, which serves as an early indicator that home supply may start to trend up after two years of steady decline. The high demand and lack of new listings over the past year brought single-family home and condo supplies to record lows as we entered 2022. As more new listings have come to market, inventory has increased in Broward and Orange counties, while Miami-Dade County inventory hasn’t seen a meaningful increase in homes for sale. In fact, Miami-Dade condo inventory declined further in May. The next two to three months will likely show us peak inventory levels for 2022, but we are certain that inventory will remain at depressed levels this year.
Even though inventory is low, sales remain relatively high, although sales numbers are showing early signs of softening demand. This isn’t to say demand is low. Sellers can expect multiple offers, and buyers should come with competitive offers.

Months of Supply Inventory further indicates high demand and low supply

Homes are selling faster than ever, and buyers must put in competitive offers.
Months of Supply Inventory (MSI) quantifies the supply/demand relationship by measuring how many months it would take for all current homes listed on the market to sell at the current rate of sales. The average MSI is four to five months in Florida, which indicates a balanced market. An MSI lower than four indicates that there are more buyers than sellers on the market (meaning it’s a sellers’ market), while a higher MSI indicates there are more sellers than buyers (meaning it’s a buyers’ market). Currently, single-family home and condo MSIs are exceptionally low, indicating a strong sellers’ market.

Miami is full of luxurious properties that are stunning to look at. But no luxurious Miami home is complete without a beautiful yard. However, landscaping in the Sunshine State, especially if you live near the beach, can be a challenging task for many people. The key is to know what you want to achieve and make a good plan. With a bit of creativity, effort, and research, you’ll be able to create a wonderful and unique space you’ll love. So, without further ado, let’s explore some excellent high-end landscaping ideas for your Miami home!

Time to plan

Making a plan is crucial if you want your home to have a cohesive appeal. Once you determine your budget, choose the style, and work out all the details, you’ll be ready to create your dream home. Here are some things you should take into account.

Factor in the outdoor amenities

Do you have a pool, porch, gazebo, or some other outdoor amenities? If this is the case, you want to plan your landscaping to complement the rest of your home. Consider pathways, fountains, benches, and similar items when choosing and arranging plants and flowers for your home.

Of course, consider potential repairs or remodeling if you plan to buy a new Miami home. Plan these with landscaping in mind so you can make the most of this summer project.

Choose a style that suits you

Another thing you want to keep in mind regarding landscaping ideas for your Miami home is style. There are many ways to make your home look lush and luxurious. Therefore, the style you choose should reflect your personality and preferences. Casual Boho appeal or sleek modern lines? Or maybe a classic tropical paradise look? Choose the plants and designs that show your taste and style.

Take maintenance into account

Of course, maintenance is an important factor. If you love tending your garden and have enough time to do it, there’s no limit to what you can do! On the other hand, you can always hire professionals to keep your yard in the top shape.

Additionally, if you’re planning to buy a home in Miami, whether it’s old or new, it’s always a good idea to have a home warranty. That way, you’ll have a safety net in case of damage and unforeseen expensive repairs.

But not all home warranties are the same, so ensure you explore different providers. Some of them will offer additional coverage for your garden and your landscaping equipment. So, don’t hesitate to ask everything you want to know and explore your options.

However, if neither of these options seems attractive to you, it’s best to plan carefully and choose the plants that are easy to maintain.

Take some time to research the plants

Miami weather is what attracts most people to this charming beach city. But, it also means that you need to choose plants that thrive in a tropical climate and can survive somewhat harsh conditions. Sand, sunshine, and salty conditions are essential factors if you have a beach home. Also, consider the size and shape of the plants you want and the maintenance level they require.

What are some of the best plants for your enchanting Miami garden?

Not only will the lush garden make your home attractive, but it will also add value to it. So, let’s look at some plants that thrive in Miami’s climate and will make your home look stunning!

Palm trees

Nothing says tropical paradise as much as palm trees. Not only are they green and beautiful all year round, but they also come in various sizes. Whether you opt for the towering variants or small potted palms, they’ll fit perfectly with any style you choose for your home.

Beach rose

Beach rose, or Rosa Rugosa, is a hardy plant that can endure poor soil and salty conditions very well. That makes it ideal for your Miami home. Plus, it can help you control erosion and attract wildlife, too. Dark green leaves in contrast with white or pink flowers will both look amazing and lure the insects, birds, and even deer to your beautiful garden.


However, ferns are ideal for you if you want a more subdued yet iconic look. You can grow them easily in hanging baskets and pots, or you can use them as shrubs or groundcover if you prefer. Apart from regular watering and pruning, they won’t demand a lot of your attention.


Another iconic and instantly recognizable plant is the hibiscus. Unique colors and shapes of hibiscus blooms will lend variety to your property. But keep in mind that they can grow very tall, so ensure you plan for that in your landscaping.

Ivy geranium

Planting ivy geranium is also one of the stunning landscaping ideas for your Miami home. Vibrant red flowers will look fantastic in your hanging baskets and add a touch of luxury to your home. Additionally, this plant loves the Miami climate and is easy to take care of.


Gardenia is a versatile plant with beautiful and unique flowers. With their sweet and gentle scent, they’ll make your home a joy for all the senses. They grow in evergreen bushes, and their white flowers blossom in late spring and early summer. Also, they don’t require much care – a lot of direct sunshine that Miami always provides and some watering.

Extra landscaping tips for your Miami home

However, choosing the right combination of plants for your landscaping is only the beginning. The next step is arranging them to produce the maximum effect. However, while doing so, there are a few landscaping tips you should keep in mind:

Enjoy your beautiful home!

As you may see, there are many wonderful landscaping ideas for your Miami home. Use your imagination and follow our tips to make your outdoors look appealing and beautiful!

As we enter the midpoint of 2022, the rush for luxury residential real estate across the sun-kissed southeastern coastline remains unprecedented. An influx of home buyers coming to Miami from areas with state personal income taxes fueled a whopping rise in property values, and sellers are massively considering what amenities can maximize property value both in the short and long term. If you’re one of them, here are seven ways to add value to your Miami home that stole the spotlight.

#1 Extend your home

If you’re looking to sell your Miami home for the best price, you should consider extending it. We all want extra space. Bringing a whole new area that you can enjoy, be it a spare bedroom, en-suite bathroom, a home office (these are a huge trend), storage, or living space, can add up to 23 percent to your property’s value.

But if you are forking out for a home extension, you’ve got to make sure it’s worth it. So, before you get started with the work, compare the building costs and the value gain. Also, don’t forget to consider the complexity of the build. 

Another thing you can consider is Additional Dwelling Units. ADUs are a home trend that evolved during the pandemic and one that looms large this year. They’re typically small, self-contained, and separate from the house, and they’re incredibly useful when one needs a place to work away from all the noise or somewhere visiting family members, and friends can stay. What’s more, ADUs may also serve as a source of income for homeowners.

#2 Add more storage

Talking about extra space, additional storage space is an upgrade that will probably never fall out of favor. This doesn’t have to be a completely separate structure, such as ADUs (although it can be!). It can be any type of storage, from a beautifully designed walk-in closet to a pantry closet in an apartment. Whatever you decide it should be, it will add value to your Miami home.

#3 Add style in key rooms

Real estate experts in Miami consistently swear by a home’s key rooms, saying that updated kitchens and bathrooms help sell houses faster and improve resale value. However, the importance of choosing quality materials for these areas is not something you’d want to underestimate. This mainly goes for the kitchen cabinetry, given that it’s usually subject to a great deal of wear and tear. But, with the right design and suitable materials, renovating a kitchen or bath space will always, without question, boost your home value.

Keep in mind, however, that these are large projects. Plus, kitchens and bathrooms are the most utilized rooms in a home, and you need them to function. So, you might want to avoid starting with the work before you settle into your new abode. If you’re moving locally, all the easier. You can easily find expert help in the area and relocate by the time renovations begin.

#4 Create a dedicated home office

Yesterday – a business challenge, today – the norm: the work-from-home population continues to grow day by day, and so does the demand for home offices. If you’re selling a house, creating one or dedicating existing space to functional a home office is an excellent investment and a fantastic feature to highlight in your listing. These are real environments that foster productivity but are also stylish, thoughtfully designed, and comfortable. Your new home office can also have an en-suite bath or a bar – whatever makes it shine is worth mentioning to prospective home buyers. It will, without a doubt, add value to your Miami home.

#4 Enhance outdoor living

Investing in outdoor living provides a fantastic ROI for most homeowners, making it a perfect home improvement project. Of course, Miami offers plenty of opportunities for being outdoors. However, simply building a new deck or patio or revamping the balcony will make your home more desirable to buyers looking for a new home. For those who are looking to really stand out, some of the features that buyers truly love to see in an outdoor space include:

#5 Give your home’s exterior a once-over

Anything that enhances your home’s curb appeal will reap the rewards when it comes to saleability. Buyers always pay attention to the exterior – it helps them decide whether they like a property before even stepping inside.  

For starters, buyers love to see attractive landscaping; it implies that you maintain and take care of the property. You don’t have to break the bank, either. Basic yard care, such as mowing the grass, fertilizing the lawn, and controlling the weeds, will do the trick.

You can make your property stand out by:

You should consider upgrades that lower the maintenance hassles. If your home is ten years old or more, some big-ticket items home buyers would have to fix or replace in the next few years might scare them off and make them look elsewhere. So, make sure that the roof doesn’t leak, gutters and downspouts are functioning, the basement is dry, floors are solid, and walls are in good repair. You should also check your HVAC and plumbing systems and consider installing new siding.

#6 Make your home more efficient

If you decide to tackle energy-efficient home improvements, it will be worth your while. Buyers are generally willing to pay over the asking price for a home if they can cut down on annual utility costs and other bills long-term. Even more importantly, they’re happy to reside in a home that helps reduce their overall impact on the environment.

For instance, if it is clear that your roof has taken the brunt of seasonal weather changes, you might consider replacing it. Leaks or missing, cracking, or curled shingles aren’t exactly a selling point. And, while you’re at it, consider using materials such as sheet metal or clay rather than asphalt. These materials help to reflect heat instead of absorbing it, thus naturally keeping the entire house cooler. If there’s no need to replace the roof entirely, try adding a cool roof coating that reflects heat.

Other ideas that add value to your Miami property and make it energy efficient include:

#7 Consider a utility room

Utility rooms might be where you’d do tedious house chores and store practical equipment, but the reality is that any home would be lucky to have one. Plus, if you design and outfit your laundry room well, it can be a complete game-changer. These are important spaces, the engine rooms of a home, we may call them, and they will add value to your Miami home. Consider space-saving designs and smart storage solutions, and place it in a convenient location, and it will make a significant impact on the buyers.

The Big Story

Rising rates may not normalize the housing market, but they may help inflation

Quick Take:

Note: You can find the charts & graphs for the Big Story at the end of the following section.

Prices continue to rise as mortgage rates hit 13-year highs

After the Fed’s May meeting, Fed Chair Jerome Powell announced that they are raising their benchmark rate by 0.50%, the largest hike since 2000. Earlier this year, the Fed was expected to raise interest rates by 0.25% at least six times this year, going from 0% to 1.90%. Now that each increase will most likely be 0.50%, the market expects the federal funds rate to reach 2.75% to 3.00% by the end of the year, which would be the highest in 15 years. Although the fed funds rate doesn’t directly affect mortgage rates, the rate hike moves into the broader economy quickly. Over the past four months, mortgage rates have moved about 2% higher for both 30- and 15-year fixed mortgages. Economists now estimate that 30-year mortgage rates could climb above 6% by mid-2022, which is fast approaching. Because the Fed indicated the path of rate hikes for the rest of the year, we expect mortgage rates to top out at around 7% this year for prime borrowers.
A rising rate environment increases short-term demand as buyers try to lock in lower mortgage rates, which is what we are seeing now. The increased short-term demand is driving prices right now outside of supply, which begs the question: Will higher mortgage rates actually drive down prices? No, they sure won’t.
Using history as our guide, we can see that home prices continued to rise even as mortgage rates peaked at over 18% in the 1970s, which would translate to about $7,500 per month on a $500,000 loan. Luckily, we aren’t going back to those rates. Higher rates, however, will do exactly what the Fed intends, which is to take money out of the economy and decrease overall demand. The average 30-year mortgage rate was 3.11% in December 2021, rising to 5.10% by the end of April 2022. If you bought a home in December and financed it with a $500,000 mortgage loan at 3.11%, your monthly spend on principal and interest would be $2,138 — versus $2,715 if you got the same loan in April 2022 at 5.10%. Over the life of the loan, you’ll spend $207,720 more at 5.10%. From the Fed’s perspective, that equates to roughly $500 less per month to spend on goods and services, bringing down aggregate demand when we multiply that reduction of disposable income across households. The gradual rate increases are meant to avoid sending the economy into a recession.
In addition to rising rates, supply still drives home prices. In April, the housing supply ticked up ever so slightly, but it’s still 60% lower than the number of homes on the market in April 2020. We are entering what is traditionally the hottest time of year for the housing market with a record low supply of homes. Over the past four months, which had the lowest inventory on record, home prices increased 12%.
If you are considering buying a home, there aren’t many reasons to wait. Home prices and rates are still rising. The low supply continues to make the market extremely competitive. We are starting to see some softening in demand, but not nearly enough to balance the supply side of the market.

Big Story Data

The Local Lowdown

Quick Take:

Note: You can find the charts/graphs for the Local Lowdown at the end of this section.

Home prices continue to rise despite rising rates

Single-family home and condo prices rose to all-time highs in April 2022, but it’s still too early to determine how increasing rates will affect the market. Mortgage rate hikes only lower demand in the long term. In the short term, demand increases as buyers try to lock in lower rates. Over the past four months, the average 30-year mortgage rate has increased 2%, which means a 27% increase in monthly mortgage payments, yet prices keep moving higher.
The factors now affecting home prices are anticipated to have mixed results, unlike the past two years when all factors caused prices to increase. Rising interest rates, which will hopefully curb the rising 40-year-high inflation rate, will make homes less affordable and dampen demand over the rest of the year. They may, however, also lower supply as current homeowners reconsider their plans to sell.
Many homebuyers are also home sellers, moving from one home to another. Newer homebuyers and homeowners who refinanced over the past two years locked in one of the lowest rates in history, making moving a more difficult financial decision. This could keep supply unseasonably low with fewer new listings coming to market, as we saw in April. In general, the Fed doesn’t have a tool to deal with supply-side issues: It uses monetary policy to affect demand, making money more or less expensive. As a result, the Fed’s rate hikes may result in unintentional effects on supply. In the selected Florida markets, the lack of housing supply will keep prices rising in the coming months.

Inventory declines further

Housing inventory declined in April, which shouldn’t be surprising at this point, as we haven’t seen anything resembling normal seasonality in a long time. This serves as an early indicator that home supply will remain depressed this year. The high demand and lack of new listings over the past two years brought single-family home and condo supplies to record lows month after month. With April inventory declining rather than rising, the next three months will help us forecast how inventory levels will trend for the rest of the year.
Even though inventory is low, sales remain incredibly high, especially when we account for available supply. This trend once again highlights the high demand in the area. Sellers can expect multiple offers, and buyers should come with competitive offers.

Months of Supply Inventory further indicates high demand relative to supply

Homes are selling faster than ever, and buyers must put in competitive offers.
Months of Supply Inventory (MSI) quantifies the supply/demand relationship by measuring how many months it would take for all current homes listed on the market to sell at the current rate of sales. The average MSI is around four to five months in Florida, which indicates a balanced market. An MSI lower than three indicates that there are more buyers than sellers on the market (meaning it’s a sellers’ market), while a higher MSI indicates there are more sellers than buyers (meaning it’s a buyers’ market). Currently, single-family home and condo MSIs are exceptionally low, indicating a strong sellers’ market.

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