As the Fall Real Estate Season has arrived, we look at how 2021 marks a year of very low interest rates and incredible buyer demand, met with an inadequate housing supply shortage in South Florida's market inventory. Demographic shifts of people moving from the North Eastern and West Coast of the United States into Palm Beach, Broward County and Miami-Dade County have added to the huge purchasing of homes and high prices.

The pandemic has brought even more out-of-towners to the area because so many people can now work from wherever they want. Homebuyers are now moving to South Florida  from all over the map. The new term is the 'Great Reshuffling'. Pending home sales are up 6% from 2020 despite dwindling listings. South Florida has seen the migration of home buyers triple since last year. Miami tops the list of most popular U.S. migration destinations. Keep in mind, the United States will reopen in November to air travelers from 33 countries including China, India, Brazil and most of Europe who are fully vaccinated against COVID-19, r. Foreign Buyers are going to be added to South Florida's housing mix.
 
The Federal Reserve warned in September 2021 that it was preparing to taper its emergency stimulus efforts from the pandemic, including winding down its bond purchases. That is expected to make mortgage rates rise, as well as rates on credit card and car loans.The National Association of REALTORS® has been predicting rates will rise over the next few months: It is predicted the 30-year fixed-rate mortgage to average 3.5% by mid-2022.
 
Flood Insurance is another topic for discussion. The Federal Emergency Management Agency (FEMA), which oversees the National Flood Insurance Program (NFIP), is updating its risk rating methodology on Oct. 1, 2021. FEMA’s Risk Rating 2.0 - FEMA is replacing an inaccurate rating system that has not been updated in half a century and is not sustainable for homeowners or taxpayers. FEMA has been using flood zone and the elevation certificate as their indicators for flood insurance. With FEMAS's Risk Rating 2.0, the system will view and price each home individually using modern industry technologies, including elevation, distance to water, and cost to rebuild. Buyers may be able to assume the Sellers Flood Insurance Policies or secure a flood insurance policy. 

The first impulse is to look at inventory and see what is available, but as a buyer, be prepared with your proof of funds or pre-approval letter. If you need a referral for a great mortgage consultant, let me know, as I work with the best! This is your first step to home buying.

Understanding the mortgage process and what type of loan you are comfortable with does take some understanding. Your credit report is more than a number. you need to know what that number means and what you can buy with that number. Your income, your debt to income ratio, your down payment, points, your savings, interest rates are all part of the equation to the sale of a home.

Why do I mention having your pre-approval ready to go? For those who keep looking online without having a pre-approval letter, please keep in mind it takes time to gather and give all of your information to a mortgage specialist. By the time you choose a home and finish your requirements, the property you fell in love with may now land in the hands of another buyer who was qualified.
 
What is a balanced market?  = 6 to 9 months of available housing inventory.
The luxury sector, which is ( 1 Million dollars or more) 12 to 18 months is an optimum balance.
 For August 2021:
Miami -Dade county had 2.3 months of active housing inventory.
Broward county had 2.3 months of active housing inventory.
Miami's townhomes and condos have 4.6 months of active inventory for August 2021 while Broward counties townhomes and condos have 2.1 months of inventory