Introduction to South Florida’s Housing Market
Last year, South Florida’s housing market saw very little supply and higher demand. At the time, the real estate market saw sellers making massive profits off homes in a short timeframe.
Fast forward to one year later and there’s a different story. The housing market is now seeing a new trend of sellers taking their homes off the market. South Florida is leading the nation in this new trend.
The Current State of the Housing Market
According to Realtor.com, in the month of July, for every 100 homes posted for sale, 59 listings were removed in the Miami-Fort Lauderdale-West Palm Beach metro. These listings were not posted for a short time. In the tri-county area, the average listing spent 88 days on the market. That is the longest amount of time compared to any other top metro. When compared to the national average, for every 100 homes only 21 are taken off the market and the average listing spent 58 days on the market.
Reasons Behind the Trend
Real estate expert Bryan Gorrita says there are two major reasons why there are more sellers than buyers in today’s market. The first is the cost of ownership. Insurance premiums and property taxes have risen and consumers don’t want to pay the extra costs. "Sellers now are saying it doesn’t make sense for me to own this property, let me sell it and try to get the most that I can," explained Gorrita. "The other thing is greed. They purchased their home five six years ago and they might have bought it for $300,000 and think they are going to get a million dollars.”
Impact on the Market
Gorrita’s point is what the Realtor.com report indicates. Less than 18% of homes have a reduction in price. This suggests, according to Gorrita, that sellers would rather wait it out then to sell. “These prices that we are seeing is a product of what we saw during the Covid-19 pandemic. And, with the rush of people coming down here [South Florida], purchasing homes and relocating," said Gorrita. "Now that we have had time after the pandemic, a lot of people who came from New York and other parts of the country have had to go back to their home state, and go back to their jobs, but the problem is that the prices haven’t accommodated."
What This Means for You
What does this shift mean for you? Gorrita says those looking for a place to live should consider the rental market, as he claims it’s slightly more affordable and you can negotiate price. Gorrita also advises that if you want to buy a home, look at the number of days it has been listed. If it’s been posted anywhere from 4 to 6 months there might be a reason. “At the end of the day you don’t know what is going on, there might be a death in the family, they need to relocate, they need a bigger home, and at that point they might be more willing to adjusting their price and making a deal,” explained Gorrita.
Negotiation and Pricing
The realtor also encourages potential buyers to negotiate. Gorrita says if you have a price in mind, don’t overspend and put in the offer you want.
Conclusion
In conclusion, the South Florida housing market is experiencing a significant shift, with sellers pulling their homes off the market at a higher rate than anywhere else in the nation. This trend is driven by the high cost of ownership and seller greed. As a result, buyers may need to consider alternative options, such as the rental market, and be prepared to negotiate prices.
FAQs
Q: Why are sellers pulling their homes off the market in South Florida?
A: Sellers are pulling their homes off the market due to the high cost of ownership and seller greed.
Q: How long are homes staying on the market in South Florida?
A: The average listing is spending 88 days on the market in the tri-county area.
Q: What is the national average for homes being taken off the market?
A: For every 100 homes, only 21 are taken off the market nationally.
Q: What advice does real estate expert Bryan Gorrita have for potential buyers?
A: Gorrita advises potential buyers to consider the rental market, look at the number of days a home has been listed, and be prepared to negotiate prices.
