House hunting for under $400,000? These Miami ZIP codes saw the most sales in 2020
Bargain house hunters found their haven in Homestead. The ZIP code 33033 had the highest number of sales for houses priced under $400,000 in Miami-Dade in 2020.
The ZIP code 33033 had 429 single-family home sales under $400,000 from the first quarter through the third quarter, according to 2020 sales data provided by the Miami Association of Realtors. The Miami Herald calculated the total number of closed sales for all of Miami-Dade’s 77 ZIP codes.
Four other ZIP codes also ranked high for sales volume under $400,000: Homestead and the Redland’s 33032 had 321 sales, Miami’s 33177 had 269, Miami’s 33147 had 208, and Miami and Cutler Bay’s 33189 had 192.
First-time buyers — mostly locals and a few New Yorkers — drove sales up in these ZIP codes, said Raquel Brookins, Coldwell Banker Realty broker associate. They were searching for primary residences and looking to get the most bang for their buck.
“You take $400,000 in Homestead and are able to get a four-or-five-bedroom home built in 1999 or later,” she said. “You take the same $400,000, go north and buy a smaller, older home that needs a lot of repairs.”
Most buyers are drawn to Homestead’s selection of new construction. Seeing steady interest, Lennar continues to build in the area.
Besides affordability, two other factors are drawing buyers to these ZIP codes, Brookins said: Low interest rates — Freddie Mac has a 2.67% interest rate on a 30-year mortgage — allow first-time home buyers to afford a house that normally would be out of their budget. Secondly, the ability to work remotely is leading buyers to go south.
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“People are willing to go farther south because they don’t have to drive as much,” Brookins said.
Although remaining below the all-time high Miami-Dade median of $450,000, the median sales prices rose in all of these ZIP codes, according to data from the Miami Association of Realtors.
Median sales prices increased when comparing the third quarter 2019 to 2020 as follows:
▪ ZIP code 33033 had a 7.1% increase, from $278,700 to $300,000
▪ ZIP code 33032 had a 11.7% increase, from $295,805 to $335,000
▪ ZIP code 33177 had a 14.7% increase, from $313,051 to $367,000
▪ ZIP code 33147 had a 14.4% increase, from $231,034.40 to $269,900
▪ ZIP code 33189 had a 9.7% increase, from $333,207 to $369,000
Despite prices continuing to rise, Brookins said these areas will likely have high sales volumes again in 2021. First-time buyers, she said, will continue to search for houses with ample space.
