In the past year, the tight supply of homes have defined the South Florida housing market, driving listing prices higher and turning it into a seller’s market. However, this tight inventory is starting to ease up according to local real estate agents and analysts.
Ever since prices hit rock bottom in early 2012, investors and traditional buyers have, in a way, turned the real estate market into a battlefield, pushing inventories near their lower levels in almost a decade.
Now although it’s still a seller’s market, those who are looking to buy a home in South Florida has three reasons to be more optimistic:
Listings are up. Since the start of this year, more sellers in Palm Beach and Broward countries have listed their homes on the market. In fact, single family listings in Palm Beach County shot up sharply last July with a 21 percent jump from last year. In Broward County, new listings rose to 17 percent.
Although listings tend to go off the market more quickly, the price increase in homes encourages more sellers and makes them feel more confident about putting their home in the market, giving buyers more choices. Some home owners in South Florida even go as far as checking home values monthly, waiting for the magic number which would allow them to sell.
Investor demand is cooling. Last year, investors flocked to the South Florida area to buy affordable homes and rent them out. Most of these investors buy directly from lenders, making it hard for traditional buyers to purchase a home. However, as values increase on an annual basis, the housing market becomes less attractive to investors.
With the higher home prices, investors are not as interested as they used to. Meanwhile, rising prices and mortgage rates also suppress interest from some buyers, meaning serious buyers can expect less competition in the future.
New construction is coming. During and some years after the housing market crashed, some homebuilders in South Florida went out of business or into hibernation but the rebound of prices has brought another wave of building. WCI Communities, Lennar Corp., Toll Brothers and Standard Pacific Corp. are planning 1,500 homes to be constructed in Parkland alone. This is a great way for home buyers to purchase a home especially if they’ve experienced touring run-down homes only to be outbid by investors.
With all these, there’s plenty of reason to be positive about the South Florida housing market if you’re a buyer. The key is to hang on and stop until you closed the deal on your dream home.
But it’s not just a matter of house hunting. You’d also need to get in touch with a real estate team that brings together their market expertise and quality services. Trust in the Great Florida Homes Team for all your real estate needs!
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