Miami home sales drop while prices rise

Home sales were down more than 37% year over year in the Miami metro area, per RE/MAX's February report.

Why it matters: In 2022, potential buyers were desperate for more inventory. Now, homes are hitting the market but people can't afford them.

What's happening: Rates for a 30-year loan were at 6.09% in early February, and shot up to 6.65% by the end of the month, per Freddie Mac.

By the numbers: Locally, there were just 13,167 homes on the market in February 2022, but the same month this year, there were 24,677 — an inventory jump of 87.4%.

• The median sales price in February 2022 was $405,000. That figure rose to $435,000 — a 7.4% jump — last February.

Zoom out: Because there's less competition right now, buyers don't have to front as much cash as they did a year ago, Axios' Emily Peck reports.

Between the lines: Buyers who can afford these mortgage rates have more power.

• They have more options than a year ago, they can take their time searching and they can make offers that aren't wildly above list price.

Yes, but: These rates make buying unaffordable for many.

What's next: Mortgage rates dropped nearly a quarter point this month, which means buyer activity will likely pick back up.