What’s happening in the South Florida Real Estate Market? Here’s a quick overview of the market conditions as of February 2021.
Interest rates had been climbing, but it has gone down this week which gives buyers a much needed break from the higher purchase prices that they are paying.
The stats that we have are actually for February 2020 versus February 2021. Broward County Total home sales increased 24.8%, which is a huge number, as these numbers reflect pre-COVID sales. 20.6% of these buyers paid in cash. In Palm Beach County, this number is actually 40% as many people from out of market are snatching up houses, making it difficult for first time home buyers to compete. The median sales price went from $385,000 to $433,000 and that’s a 12.5% increase. In both Miami Dade and Palm Beach Counties, it went up to $450,000, surpassing Broward County prices. For sellers, the original price received compared to the asking price was 98% versus 96% in 2020. That means if a seller had their house on the market for $100,000, they sold it for $98,000 this year versus $96,000 last year. Of course, this is just an example, as you’ll never find a house for sale in South Florida for $100,000. It cost a lot of money to live in paradise.
It took 22 days for a house to go under contract versus 56 days in 2020. So, people are snatching up houses as soon as they come to market and there are bidding wars. There were 2,338 homes for sale versus 4,863 in 2020, that’s a 51.9% reduction in inventory. Here’s an important number to make note of, there is currently 1.7 month of inventory versus 3.6 months in 2020, that is a 52.8% reduction of homes for sale. What this means is if we stopped putting homes on the market, everything in the market would sell in 1.7 months! Prices are up, inventory is down, there are more buyers than sellers. Open houses have people lined up to see properties. As far as the condominium or townhouse markets, prices have increased, but there is plenty of inventory. Chances for buyers is vastly improved for condominiums and townhouses with a more balanced market.
This single family hot market will not last forever, with almost 20 years of experience in Real Estate,
I’ve learned that things never stay the same, they go up and down, they stabilize.
While we’re in this market, if you are a buyer or seller, you need to have a plan.
Tips for Buyers
If you’re a buyer, you’ll need to be prepared and be patient in this hot market. You must save as much money as you can for your down payment, make sure your credit score is on point and be fully pre-approved with a good lender, if you need a recommendation for a lender, I can help. You will be competing with cash buyers and may have to pay above asking price, if you do, you’ll need to show that you have funds to pay the difference between an appraisal value and your offer price. If you are a cash buyer, you must show your proof of funds, which can be a letter from your financial institution or a bank statement.
Tips for Sellers
Sellers, if you are thinking it’s time to maximize the equity on your home and sell now especially in this hot seller’s market, you need to think about what your plan is for moving. Where will you move? The market moves swiftly, and you could have your house on the market and close in thirty days. We’ll work on a plan to make sure your knowledgeable in advance and have all of options explained clearly. We’ll discuss the criteria of what is important to you, so we can categorize the offers to achieve your highest and best offer.
Now more than ever, it’s important to work with someone who has the experience to compete in this market and get your offer accepted. Listing agents want to work with someone who will get the job done. Sellers want to know that who every they select to buy their home has the means to close hassle free.
I hope this has been helpful. To learn more about your options, home buying or selling process here in South Florida, don’t hesitate to contact me.