Housing market knowledge in a rapidly changing world
WHEN IS THE PRICE RIGHT?
According to research from the NAR (National Association of Realtors), the second Quarter of 2018 showed home prices soaring to an all-time high. The rise in prices stems from abysmal supply numbers, thus crippling the spring home buying season and causing total existing home sales to fall 1.7% despite lots of demand for homes in a strong economy. Realtors in the SoFlo market are experiencing a “listing shortage” when the “Days on Market” exceed the norm because some sellers have chosen to list their properties at a price that is too high to attract the buyers that are just waiting for the right property. This eventually leads to a price adjustment down the road. Sellers typically get the highest sale price within the first several weeks the home is on the market. Pricing a property correctly from the beginning will lead to a successful sale. It’s important to thoroughly review the CMA (Comparable Market Analysis) prepared by a real estate expert to determine the “right” price to list so you can get “sold”!
WHAT’S THE FORECAST FOR THE REMAINDER OF 2018?
“As long as economic conditions maintain current levels, there’s still a chance for sales to break out this year,” according to NAR Chief Economist, Lawrence Yun. Yun said in a statement, “…. with the mortgage rates trending higher, it will only happen if supply levels improve enough to cool the speedy price growth in the majority of the country.” Including South Florida!
HOUSING BUBBLE OR NOT? A NEW REAL ESTATE BUBBLE?
“With real demand for property, the market can continue to grow. A bubble happens when you have the prices going up without the demand going up” said James Young, director of the Washington Center for Real Estate at the University of Washington. Strong job growth and tight supplies have fueled the housing market, leading some to fear that it is a bubble, but all markets differ according to areas. Real estate is hyper local, and overall the So. Florida market is doing well. No one can predict the future; however, one thing is evident, we live in a very desirable place! Our area has been and always will be a Destination for those buyers desiring our South Florida lifestyle. Sellers, whose homes I have sold so they could relocate out of South Florida, are now my buyers coming back into the area! I’m also seeing the international buyers coming back.
By ANITA LAMBERTI, P.A. CIPS, TRC
COLDWELL BANKER RESIDENTIAL REAL ESTATE