The median sale price of single family homes in Miami-Dade rose 9.7% over the last year. The total dollar volume of single family homes sold in October 2017 exceeded $481 million. The number of pending listings fell more than 15%. The median time to contract was less than fifty days in October.
These statistics all tell different parts of the same story: the housing market in South Florida is unlike many other markets in the country. It is hypercompetitive and poised for further growth.
As experienced South Florida real estate attorneys, our job is to guide you through the local market and help you understand what makes our area unique. To that end, we have put together a list of the top four facts you need to know about the South Florida market.
Read on to learn important information and do not hesitate to contact us today for a free real estate consultation.
The Housing Market is on Fire
The very first thing you need to know is that the South Florida housing market is on fire. Prices are on the rise, the number of homes is limited, homes are going to contract quicker and quicker, and sellers have their choice of buyers.
These factors all conspire to make the housing market ultra-competitive. It is certainly a busy time. This brings us to the next fact about the market: it is firmly controlled by sellers.
It is a Seller’s Market
A seller’s market is when demand for homes is high, prices are high, and sellers can be selective about who they sell their property to. South Florida has been considered a seller’s market for some time now. This is due to a number of factors, including the location, the wonderful weather, the business landscape, and much more.
Things become more complicated when we consider the different markets within the larger housing market. The single-family home market is a seller’s market. The multi family home market, meanwhile, fluctuates between a buyer and seller’s market. The luxury market, on the other hand, is a buyer’s market.
The Luxury Market is Booming
The luxury market is defined as the housing market for properties over $1 million. While this luxury market may be smaller in a place like Nebraska, it is huge in South Florida. A quick property search returns well over 750 luxury listings for the City of Miami alone. This number increases exponentially when considering Broward and Palm Beach counties.
The South Florida luxury market is a buyer’s market for a number of reasons. Some of these are simple to understand. Luxury property is expensive. Not everyone can afford it and there are simply more sellers than there are buyers. This puts the power in the hands of the buyers. There are other reasons as well, like the decline in international investment in South Florida.
Construction is on the Rise
The final piece of information you need to know about the market here is that construction is on the rise. This is a natural response to increased demand. The more people that want homes, the more homes that will be built.
As construction of both single family and multifamily homes increases, we may see this seller’s market begin to change to a buyer’s market. Only time will tell.
Contact us today for a free real estate consultation and to learn why we are South Florida’s largest foreclosure bankruptcy filing firm.