How’s the Market?

How's the Market?

Right now, it all depends on your price range and your product (house vs. condo, etc.)

First principle: Supply and demand is like a seesaw.

“Sellers Win” Market

Sellers Win

Low inventory creates upward pressure on values. The SELLER has the advantage.  Time (meaning one to three years) is on the side of the seller.

“Neutral” or Balanced Market

Balanced Market

If inventory and demand are balanced, values are normally stable. Neither buyers nor sellers have an advantage.  This type of market tends to be brief, and is usually a transition from one type of market to another.

“Buyers Win” Market

Buyers Win

High inventory creates downward pressure on values. The BUYER has the advantage.  Time (meaning one to three years) is on the side of the buyer.

Months of Inventory, March 2021 vs. March 2020 (pre-COVID-19)

SFH-May-2021
CONDO_COOPS-May-2021
TOWNHOMES-May-2021

"Sellers Win Market" vs. "Buyers Win Market"

As of this writing (April 2021) the market is still very different between houses and townhomes, vs condos and co-ops.    Sellers hold all the cards for houses and townhomes.  Prior to New Years there were large groups of buyers sitting on the sidelines waiting.  Some were waiting on the 2020 election. Others were waiting for the holidays to be over or for a vaccine for Covid-19. After New Years all of those buyers came rushing into the market at one time.  Buyers are now struggling to find houses in all price ranges, and struggling to find townhomes under $500,000.  Multiple offers are common, and situations that were rare in the past – like sellers remaining in the home after closing – are quickly becoming the norm.

Affordability in our area is suffering with high property taxes and insurance.  The condo market has more variables to consider than the market for single family houses. Oceanfront locations, 55+ complexes, assessments, reserves, minimum down payments, pending lawsuits and other factors can create unique markets for individual condo complexes.

While the local market for condos and co-ops has been soft for the last couple of years, it has firmed up dramatically in all price ranges since New Years. Sales for the first quarter came in at a record pace. Some of this is due to the unaffordability and lack of inventory for houses and townhomes.  Local buyers are finding condo’s to be an affordable alternative as they give up on finding a house or townhome and purchase a condo instead. For many, this is the only way they can enter the housing market at this time.  Along the beach, buyers from the northeast have made gobbled up any affordable priced condo’s to use as second homes.   

For more exact guidance, please contact Barry Dunn directly at 954-298-1650.

"Sellers Win Market"

Seller's Market
This is the type of market most Sellers in south Florida are accustomed to. Most of the homes for sale are priced IN the market. Prices for similar properties are in a smaller range. Only those that are severely overpriced are priced OUT of the market.

"Buyers Win Market"

Buyer's Market
In this type of market, most of the properties for sale are actually priced OUT of the market, and have no real chance of selling. In order to be priced IN the market, sellers in a buyer's market must price much more competitively and aggressively than their neighbors. Only the very best deals will sell.

Single Family Houses

The orange columns indicate the average days on market to sell.  The green line shows how much of their asking price sellers got on average, for the properties that sold.

Condos

The orange columns indicate the average days on market to sell.  The green line shows how much of their asking price sellers got on average, for the properties that sold.

Townhomes and Villas

The orange columns indicate the average days on market to sell.  The green line shows how much of their asking price sellers got on average, for the properties that sold.

Last 15 years, all property types, all price ranges

Average Sale price (in red) for the last 15 years

Houses Average Sales Price in Red

It should be noted that the large difference between the average asking price and the average sale price is due to the extremely large number of unsold properties in the higher price ranges.

Condos Average Sales Price in Red

It should be noted that the large difference between the average asking price and the average sale price is due to the extremely large number of unsold properties in the higher price ranges.

Townhomes Average Sale Price in Red

It should be noted that the large difference between the average asking price and the average sale price is due to the extremely large number of unsold properties in the higher price ranges.

SINGLE-FAMILY HOUSES

Houses $100,000 to $299,999

Houses $250,000 to $349,999

Houses $300,000 to $499,999

Houses $500,000 to $699,999

Houses $700,000 to $999,999

Houses $1 million to $2 million

CONDOS

Condos $100,000 to $249,999

Condos $250,000 to $349,999

Condos $350,000 to $499,999

Condos $500,000 to $749,999

Condos $750,000 to $999,999

Condos $1,000,000 to $1,999,999

TOWNHOMES

Townhomes $100,000 to $249,999

Townhomes $250,000 to $349,999

Townhomes $350,000 to $499,999

Townhomes $500,000 to $749,999

Townhomes $700,000 to $999,999

Townhomes $1,000,000 to $1,999,999

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