Properties priced under $400,000 are becoming increasingly scarce
Miami is undergoing an existential housing crisis, with fierce competition growing for those affordable homes dotted among the luxury, high-end suburbs. Properties priced under $400,000 are becoming increasingly scarce as prices continue to rise, while the total housing inventory for 2024 sits at 42.2% below historical averages.
Speaking to MPA, Irina Slyusarchuk (pictured), VP of sales at A&D Mortgage and branch manager of the Aventura Branch, said that in order to thrive in the tight market, she’s advising clients to be strategic with their offers.
“Although we have programs with minimum down payment, I’m usually advising them to put as much down payment as they can, and show proof of assets to be more competitive,” she said. This strategy also includes providing clients with desktop underwriters to “show that they're very strong borrowers.” And, according to Slyusarchuk, this method can make a significant difference when facing multiple offers on a property, especially single-family homes, where demand remains robust.
Florida in demand
Post-pandemic, the Floridian housing market was pushed to its limit, with a surge of people opting to move to the Sunshine State thanks to the rise in remote working opportunities. According to data from the Census Bureau, Florida’s population jumped by 1.9% in 2022, adding 738,000 new residents and earning the title of the fast-growing state in the US.
“High demand in the state only happened because a lot of people moved to Florida,” added Slyusarchuk, noting that this influx of new residents has contributed to a lack of available inventory. While she acknowledges that inventory issues have emerged in waves throughout her career, the current situation is particularly challenging, following a decade of relative stability.
But it’s not just the influx of residents that’s creating havoc in housing, interest rates have played a pivotal role in driving buyer behavior, with rate cuts briefly spurring refinancing activity in September.
“We started to have a little refinance [activity] at least back in September,” Slyusarchuk recalled, but noted that the momentum was short-lived as rates began to rise again in October. These fluctuations have added to the complexity of the mortgage market, particularly as buyers navigate an already competitive landscape. The summer months in Florida are typically slow for the real estate market, but activity tends to pick up in the fall, adding further pressure as the number of buyers increases while inventory remains constrained.
Staying ahead in the mortgage market
For Slyusarchuk, one of the key advantages of working with A&D Mortgage is the speed at which it operates – closing deals quickly even in the fast-moving asset market.
“We’re able to close within seven days in certain situations” she said, pointing out that this speed can give buyers an edge, particularly when sellers are looking for quick transactions. Reducing closing time from a month to just a couple of weeks can make all the difference in winning a bid.
“We help them with that,” she added, stressing that the ability to move quickly can often be more important than the specifics of the mortgage program being used.
In addition to traditional mortgage products like FHA, FNMA, Freddie Mac and VA loans, Slyusarchuk’s team offers “all the non-QM programs that are available in the industry,” but the ability to expedite the process is often the primary concern for buyers. The efficiency and responsiveness of her team has been a major factor in its success, as they aim to “do only necessary documentation for underwriting, without asking for tons of not needed paperwork” and provide swift communication.
“We answer the phones all the time. We answer emails right away,” Slyusarchuk said, underscoring the importance of accessibility in such a competitive market.
Collaboration with real estate agents and home builders is also crucial in streamlining the mortgage process, ensuring that all parties involved are well-informed and working toward the same goal.
“They always know the progress. They know where a file currently stands, when appraisal was ordered, when we received it back,” Slyusarchuk said. This constant communication is essential not only for keeping buyers in the loop but also for addressing any potential issues before they become problems.
The challenges posed by Florida’s housing market are compounded by external factors too - like fluctuating interest rates and the ongoing inventory shortage, but Slyusarchuk’s approach is grounded in practical solutions tailored to the specific needs of her clients. She advises higher down payments, solid proof of financial stability, and quick, efficient closings as key strategies to navigate the current landscape.
“When presenting an offer, some explanation from the buyers, that they are solid borrowers with good income, assets and credit will help,” Slyusarchuk suggested, adding that maintaining an open line of communication between the buyer, broker, and other stakeholders is critical to keeping deals on track.
