The volatile housing market has been a hot topic over the last few years. We saw a deficit in houses for sale in South Florida, compared to a ton of buyers, which drove prices sky-high. Not to mention, mortgage interest rates were lower than they had been in years. When we have more people looking for houses than there are homes listed for sale, we call this a “seller’s market.” It’s a great time to sell a house (lots of offers), and a no-so-great time to buy one (lots of competition).
Although we see that South Florida is still hosting a seller’s market, things look much different than they did even six months ago. There are more houses on the market, listings are active for longer, and buyers have the luxury of being a little bit pickier when it comes to home features and locations. Unfortunately, these positive changes (for buyers) come with a higher mortgage interest rate.
A.K Esquire aims to help homeowners, buyers, and sellers easily navigate the complex and quickly changing real estate market.
South Florida Housing Market Changes
Here’s what you need to know about the recent shifts in the South Florida Real Estate market.
Pricing that Reflects Value
Over the last few years, some houses nearly double in perceived value. Of course, the listing price didn’t reflect what the home was actually worth – it was based on what homeowners and realtors felt they could sell it for.
Now that interest rates are rising and competition is decreasing, we see more sellers listing their homes for what they’re worth. Granted, home values have increased across the board, so the price will likely be higher than it was a few years ago. But still lower than a few months ago.
Fewer Bidding Wars
It was common to hear that someone purchased a house for $50k or more over asking price. Paying more than the listing price is almost always the result of a bidding war (most people wouldn’t voluntarily overpay for a house!).
However, available homes aren’t getting as many offers today. According to data on buyer competition from Redfin, their agents had to compete with other buyers on 51% of deals in June 2021. This June, only 37% of Redfin offers are placed on a listing with at least one other offer.
Most sellers weren’t negotiating with buyers when the market was at its peak. Some buyers were even willing to waive home inspections if it meant they could buy faster and for less than competing offers that wanted an inspection.
Now, sellers can expect buyers to stand firm in their contingencies. Now that buyers have more options, they will cancel contracts that don’t make them feel 100% confident in their purchase.
Navigating today’s quickly changing real estate market in South Florida can be challenging. However, A.K Esquire is here for you.
A.K. Esquire is an experienced law firm in Fort Lauderdale. We are prepared to support you through the home buying or selling process anywhere in South Florida. Contact us today for more information about our services.