Prices and Rates: The two factors buyers care about most

A recent Bank of America survey asked would-be homebuyers what would make them feel more confident about entering the market. The answers were clear: improved affordability, specifically lower prices and mortgage rates. The good news for buyers in Miami and the Florida Keys is that both areas are showing encouraging signs of change.

Prices Are Moderating
From 2020 to 2021, home prices surged by nearly 20% in a single year, leaving many buyers feeling priced out. Now, price growth has slowed to single digits—much closer to normal market patterns. While trends vary by location, overall moderation makes it easier for buyers to plan and budget with confidence.

Mortgage Rates Are Easing
Rates have come down from their recent highs, giving buyers a little more breathing room. Even small drops can translate into noticeable savings on monthly payments. Forecasts suggest rates may hold in the low-to-mid 6% range through the year, far better than what we saw just months ago.

Why It Matters
For buyers in South Florida markets like Miami, Key Largo, and Islamorada, this shift signals new opportunities. Prices aren’t crashing, but they’re stabilizing, and mortgage rates are no longer climbing at the pace they once were. Realtors with The Selling Properties Group powered by LPT Realty are tracking these changes closely, helping homeowners and buyers navigate today’s evolving market.