Are you willing to Pay Full Market Value or Over?

Today's Real Estate Market in South Florida has a low supply level. For the past 2 years we have been witnessing a very strong Sellers’ Market. Are you willing to Pay Full Market Value or Over? That is what we keep hearing, and this scenario has been winning the bid on purchasing a home. Yes, most offers are only accepted with a high price. Sellers would like to see buyers with a minimum of 3% to 5% in escrow as they feel this is a stronger buyer.

Passe is the traditional way!

Make your strongest offer, highest and best the first time you make an offer if you really want to purchase a home. Please have your pre-approval letter ready ahead of time or call me for a mortgage professional to qualify you. An offer cannot be made without a pre-approval letter or proof of funds. Mortgages make up 2/3rd of the offers on properties and cash is used on 1/3rd of the offers. Cash is king, but not the only way to win a deal.  If you are looking for a bargain, it has been almost impossible in this market to find one. Foreclosures were here 10 years ago, and they have yet to return. Foreclosures are almost non-existent due to sellers seeing high equity in their homes. Why should foreclosures return when there is so much value in a residential property?

Covid Concerns

Most individuals are now vaccinated.There is a new strain of covid that just arrived. People are not as nervous about Covid as when the onset occurred, but we know it exists and new variants keep popping up. Joe Biden, our US President, has Covid in July 2022. Yes, this pandemic is keeping inventory levels lower than normal, but time will tell if Covid is still part of this equation. 

Real Estate Cycles

In general, South Florida is experiencing a housing shortage at historically low levels. The market supply range has been averaging in the one-month supply level. This 1-month supply level of housing has recently increased from 1.1 months of supply to 1.5 months of supply in June 2022.  Now that July 2022 has arrived, I am glad to report, we are finally hitting the two-month level. This is still a Sellers’ Market!  A normal market is 6 to 9 months of supply, which we have not seen in several years. The supply of homes across the country is up for the first time in nearly three years. The inventory increase is occurring. Seller reduction in price is starting to happen. Homes are staying on the market for 31 days. Prices are starting to respond to the higher level in inventory.

Mortgage Rates and Market Shift

The interest rate increased again July 27, 2022, by .75 percentage points. The higher mortgage rate and housing prices is taking a toll on South Florida’s real estate market and the country in general. We have witnessed mortgage rates go from 3% to nearly 6% in a blink of an eye. Buyers want the home values to lower to make up the difference in the high mortgage rates. Houses are starting to stay on the market longer due to higher mortgage rates. The medium time to contract is 12 days and the medium time to sell is 51 days. Sellers are starting to cut pricing to stay competitive.

Thanks!
Susan J Penn, PA Realtor - 17 Years

2645 Executive Park dr #125
Weston FL 33331
954-557-5993
susanjpennpa@gmail.com
www.susanjpennrealtor.com

Why own a home? The American Dream is owning your home!  The benefits of homeownership are stability, privacy, comfort, a sign of prosperity, peace of mind and a place to express yourself. Right now most homeowners are seeing a major appreciation in the equity of their homes. If you have owned your home for 2 years and it is your primary residence, a big part of your profit does not get taxed. For married taxpayers that own a home and file jointly $500,000 is exempted. For an unmarried owner, $250,000.00 is exempted from capital gains tax.

The Fed raised its benchmark interest rate on June 15th 2022 by three-quarters of a percentage point - 0.75%  — the biggest hike since 1994. That follows a quarter-point increase in March and a half-point jump in May. Yes, we are seeing the mortgage rate climb again with this new hike from the Federal Reserve. The days of the 3% mortgage are in the past and now a more normalized 6% rate is occuring.

Covid 19 gave housing a turbo boost with high pricing and a supply chain of  low inventory. Now, the mortgage rate is accelerating at very high speeds.  Sellers in South Florida have not adjusted their listing price. The pricing that seems to be lowering is the pricing from the start that has never had comparables. The price was too high to begin with.  Why own a home? The American Dream is owning your home!  The benefits of homeownership are stability, privacy, comfort, a sign of prosperity, peace of mind and a place to express yourself. Right now most homeowners are seeing a major appreciation in the equity of their homes. If you have owned your home for 2 years and it is your primary residence, a big part of your profit does not get taxed. For married taxpayers that own a home and file jointly $500,000 is exempted. For an unmarried owner, $250,000.00 is exempted from capital gains tax.

Another interest rate raise - The Fed raised its benchmark interest rate on June 15th 2022 by three-quarters of a percentage point - 0.75%  — the biggest hike since 1994. That follows a quarter-point increase in March and a half-point jump in May. Yes, we are seeing the mortgage rate climb again with this new hike from the Federal Reserve. The 3% interest rate evolved to combat a depression that was ready to occur. The days of the 3% mortgage are in the past and now a more normalized 6% rate is happening.

What I am seeing lately is the issue with roofs. South Florida roofs are becoming older. Most insurance companies will usually give a shingle roof a life span of 15 years and a tile roof 30 years. The biggest obstacle is the condition of the roof. A roof must be leak proof and have a remaining life expectancy of at least 3 years for insurance to apply.  A roof must be leak proof for an appraisal to work. Cracked tiles need replacement and loose tiles need to be repaired but this seems to be more of an issue for the buyer and the insurance companies. You will need a roof inspection and a wind mitigation report when purchasing a home. Most roofs also need gutters.

Competition is still strong in South Florida because the housing inventory in South Florida is very low. Currently the months of inventory is 1.5 Months. A normal market is 6 to 9 Months. Out of 1431 closed sales, 410 sales were from cah buyers. Home buyers are dealing with bidding wars and paying over the asking price to live in their desired location. This is the state of  today's housing market. The 6% mortgage rate has not affected real estate in South Florida. Buyers have been taking away inspection contingencies and appraisal contingencies. There is an escalation clause that automatically increases your purchase offer by a certain amount above all competing offers. A higher down payment or increasing your earnest money (the deposit made when you make an offer) shows the seller that you are serious and becomes a more attractive offer. If an appraisal comes in low, a second appraisal can be ordered.

If you see a home you like, please act quickly and call Susan Penn 954-557-5993 to set up a showing. 

Happy Father's Day to all of our Fathers! Wishing all fathers and your children a wonderful day!

We are now entering the summer real estate season. This is the time when children are no longer in school, giving more time for families to discover a new home. Most families would rather buy than rent and rentals are at an all time high.

The market in South Florida is unlikely to change anytime soon. Real estate inventory is still low and home prices are up on a national level. Normally, the spring months are when we see a major increase in property listings. This year the spring market held steady without the anticipated arrival of more listed homes. The summer months will most likely not see any significant fluctuations in the number of listed houses.  The optimum supply range for housing is 6 to 9 months of supply.  

Bristol Reserve Davie Florida New Construction Grand Opening

Builder asks for informarion page to be filled out.

Call Susan Penn BHHS FL Realty for details

at 954-557-5993

(New Homes For Sale Starting at 1.6 Million!]

Bristol Reserve currently is vacant land. Bristol Reserve will be a beautiful gated community featuring 35 homesites with one story and two story homes offering lake views and garden views. The lot size for these homes is approximately 20,000 to 25,000 square feet. Bristol Reserve is South of 595 and North of Griffin Road( north of SW 26 Street). The development is situated off of Frontage Road in Davie Florida with the entrance to Bristol Reserve located at SW 122 Court.

Bristol Reserve is east of Flamingo Road, east on SW 26 Street and north on 121 Avenue.  (2530 SW 121 Avenue), close to Flamingo Gardens. There is a 3.4 acre park to the south of the development. Nearby Million Dollar  Communities are The Hammlet and Paradise Pines. Across the highway are the Luxury residential communities of Stonemont and Oak Park. Bristol Reserve will present 4 bedroom to 6 bedroom homes from 3705 AC SF to 5742 AC SF with a 3 car garage. Custome options are available.

Belmont Model -One story, 5 bedrooms, 4.5 bathrooms, dining room, living room, family room, kitchen with large island, pantry, master suite with his & her walk-in closets, covered terrace, front porch & courtyard, 3-car garage. Additional custom options available. 3,705 AC SF 4,728 Total SF

Belmont Model From $1,590,990.00

Belmont Floorplan

Derby Model -One story, 4 bedrooms, 3.5 bathrooms, great room, family room, den, eat-in kitchen with large island, walk-in pantry, master suite with his & her walk-in closets, covered terrace, 3-car garage. 4,198 AC SF 5,407 Total SF

Derby Model from $1,650,990.00

Derby Floorplan

Preakness Model - Two stories, 4 bedrooms, 3.5 bathrooms, great room, eat-in kitchen with large island, walk-in pantry, front courtyard, loft, master suite with his & her walk-in closets, covered terrace, 3-car garage. Additional custom options available. 3,985 AC SF 5,061 Total SF

Preakness Floorplan (First Floor)

Preakness Floorplan (Second Floor)

Breeders Model - Two stories, 5 bedrooms, 4.5 bathrooms, dining room, great room, family room, kitchen with large island, walk-in pantry, master suite with large walk-in closet, covered terrace, loft, balcony, front porch, 3-car garage. Additional custom options available. 4,709 AC SF 5,879 Total SF

Breeders Model from $1,720,990.00

Breeders Floorplan (First Floor)

Breeders Floorplan (Second Floor)

Pegasus Model- Two story, 6 bedrooms, 5 bathrooms including attached guest suite and cabana bath on first floor, eat-in kitchen with large island and pantry, dining room, living room, family room, loft, master suite with sitting room, his & her walk-in closets, covered terrace, 3-car garage. Additional custom options available. 5,742 AC SF 7,046 Total SF

Pegasus Model From $1,790,990.00

Pegasus Floorplan (First Floor)

Pegasus Floorplan (Second Floor)

Our website features the best Bristol Reserve Davie real estate search for homes, condos, land and foreclosure properties available. It is the only site you will ever need! It is easy-to-use and updated by the official Realtor®’s database every 15 minutes. 

You can save searches, and get daily email alerts of new listings, price changes, sold data, and market reports. Our Interactive Map Search allows you to view properties on a map or refine your search by drawing the boundaries around the area you desire. 

Curious about what’s happening in your neighborhood? You can create a custom market report to see what’s active, under contract, and sold in your neighborhood! 

Considering  selling or refinancing your home? Get an INSTANT property valuation now!

Contact us today to find out how we can be of assistance to you!

Thanks!
Susan J Penn, PA Realtor -16 Years
Berkshire Hathaway HomeServices Realty
2330 Weston Road
Weston FL 33326
954-557-5993
susanjpennpa@gmail.com
www.susanjpennrealtor.com

Welcome to the April 2022 South Florida Spring Season as we incur Rising Mortgage Rates and Continued Housing Price Increases. Wishing you and your family a Happy Easter and Happy Passover!

The Federal Reserve monetary policy changes are occurring to address the issue of inflation. The Federal Reserve met on March 15-16th of 2022 and raised the interest rate, which escalated the mortgage rate. The Committee also indicated that it will likely continue to raise interest rates in the future, based on market conditions and projects 6 more increases this year. According to Freddie Mac, ( The Federal Home Loan Association chartered by the US congress in 1970 ), the 30-year mortgage rate went from 3.11% in December 2021 to 4.16% for March 2022.

According to an article from Paul Centopani, the editor from Mortgage Reports Paul has used a quote from - Frank Nothaft, chief economist at CoreLogic -“The rise in mortgage rates since January... is expected to slow price gains in coming months.”.another quote is from Mark Fleming, chief economist at First American - “Rising mortgage rates may be a housing market headwind in 2022, but... house prices will moderate, resulting in a more balanced market”.

For home buyers this interest rate increase will affect your ability to purchase a higher priced home using a mortgage based on your income, as mortgage rates are on the rise. Here is a dose of reality, for 2022, we are actually quite low in regards to mortgage rates. Interest rates are still at near historic lows and it's still a good time to invest in a home.

In 1971, the 30-year fixed-rate mortgages hovered between 7.29% to 7.73%.
In 1981, Interest rates reached their highest point average at 16.63%.
In 1991, the interest rate midpoint was 9.25%
In 2001, 6.79% endured as the average
In 2011, 4.45% became the midpoint
In 2021, 3.8% was the standard


Home price gains and near-record-low inventory continue to keep aspiring buyers from purchasing a home. There are two loans to consider for Sellers looking to list their homes and relocate.

The first loan is a bridge loan. A bridge loan is a short term higher interest loan where sellers can take a loan out against their current home in order to make the down payment on the purchase of their new home. As most home sellers are looking for no contingency contracts from buyers, it can be difficult to first secure a contract to sell your home and then close on a new one within the same period.

The second loan (HELOC), Home Equity Loan will let a homeowner borrow the equity on their home. The interest rate is usually 2% over the prime rate, so it becomes a more affordable choice. This type of loan helps the borrower to cover the down payment on their new home.

When mortgage rates are lower, buying a home is more affordable with the exception that we are now in a time where home prices are at their highest levels. South Florida inventory levels are reflective of out-of-state buyers and international buyers. Who is buying Florida houses? Who is your competition? Individuals from the northern states are buying in Florida. Your fellow Americans are moving to Florida.  Also, now that the pandemic has somewhat simmered, global buyers are back. 

Mortgage Rates Drop
The mortgage rates were climbing up to 4.08%. The mortgage rates have dropped back to 4.0% and today the 30-year, fixed-rate mortgage rates have fallen to 3.76% as the devastating war takes place with Russia invading Ukraine. Mortgage rates are based on bonds. When bonds are more expensive, mortgage rates are lower, which is currently taking place. Stocks and cryptocurrencies have also lost some of their value. The Federal reserve will be meeting March 15-16 to discuss the rates. Be on the lookout as mortgage rates are expected to climb higher. 

Despite lack of supply, existing home sales rise 6.7%
Homebuyers flocked to what little inventory existed in January, with existing-home sales rising 6.7% from the prior month to a seasonally adjusted annual rate of 6.5 million.January sales fell 2.3% from a year earlier, though the median existing-home price rose 15.4% annually to $350,000, according to the Friday report from the National Association of Realtors. (Housingwire.com)

Prepare Now for a Busy Housing Market This Spring
The 2022 real estate market is shaping up to be something closer to normal. As we approach the busy spring homebuying season, homebuyers are still likely to face an uphill battle, but it shouldn’t feel anything like 2021.Home values skyrocketed by nearly 20% at many points in 2021. While housing prices aren’t expected to drop in 2022, the increasing rate of prices should slow down. Many experts believe home values will increase at roughly half the rate (single-digit increases) we saw during the peak of 2021. (Time.com)

Dear Susan J Penn, PA:

Congratulations! You put in the hard work, the long hours, and stayed committed to achieving success in 2021. And on behalf of the entire network, we want to sincerely congratulate you on your award-winning performance.

Our vision is to become the best-recognized and most highly respected homeownership services brand worldwide – your competitive spirit, knowledge and dedication are what will help us achieve this. We look forward to recognizing your outstanding achievements at Sales Convention 2022!

South Florida February 2022 Events! 

The Super Bowl is set! The Los Angeles Rams and the Cincinnati Bengals will play for the NFL championship on February 13th.   Valentines Day  - February 14th  Las Olas Food & Wine Festival -  February 16th Elton John at the Hard Rock - February 27th South Florida February 2022  Real Estate News!   Back to South Florida Real Estate News!  Currently, for February 2022 we have strong Buyer demand and a sparse housing supply. The unexpected speed of Buyers purchasing homes arose in December and January as South Florida properties left the market as soon as they arrived. There has been no extra amount of inventory spillage with this limited inventory. This past year of 2021 and present year of 2022 is not the usual for real estate housing. The inventory imbalance of low supply mixed with high demand and the Covid -19 pandemic lockdown have contributed to this circumstance. We now have remote employees who can work from any location and are trading in their northern homes for the sunshine state.  Home value appreciation has accelerated 19% since last year Inventory is down 40% from Pre-Covid Levels Rents are up 16% from last year The 30 -year fixed rate mortgage averaged 3.55% this week, Freddie Mac reports. The mortgage loan limit for conventional financing is $647,200 for a one-unit property. As we begin the month of February, the Spring shopping season approaches and interest rates are low. The market is going to be moving quickly. If you are a buyer in need of a mortgage, do not start the house hunting process first and then get approved for financing. By the time you have given all of your paperwork, you will have missed that beautiful home to another buyer. There was a time when a real estate buyer would shop and tour approximately 30 homes. With the restricted amount of inventory, there are very few homes to explore. You may only see 3 to 5 homes. Please be prepared.

Broward County Market Report December 2021!

Market Report for Broward County and Palm Beach County  

Year End Market Stats for 2021

 

Broward County 

Broward County - Single Family Homes Closed Sales Up 15.8% - 18,565

Broward County - Single Family Homes Median Price Up 17.5% to $470,000.00

Broward County - Condo/Townhome Price Increased 15.1% to $217,500

Broward County - Months Supply of Inventory Down 47.6% to

 1.1 Months with Single Family Homes - 1.7 Months of Condos/Townhomes

Broward County - Total Homes Sales Increased 28.4% 

from 31,476 Year end 2020 to 40,423 Year End 2021

Broward County -  Single Family Homes Sales Increased 15.8%

from 16,035 Year end 2020  to 18,565 Year End 2021

Broward County - Condo/Townhome Transactions Increased 41.6%

from 15,441 Year End 2020 to 21,858 Year End 2021

Broward County Single Family Dollar Volume Increased 46% 

from 8.5 Billion Year End 2020 to $12.4 Billion Year End 2021

Broward County - Condos/Townhomes Dollar Volume Increased 69.5%

form 3.8 Billion Year End 2020 to $6.5 Billion Year End 2021

Broward County Total Active Listings Decreased 52.6%

 from 9,997 Year End 2020 to 4741 Year End 2021

Broward County - Short Sales and REO's Closed Sales - 1.1% of all Closed Sales

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Palm Beach County 

Palm Beach County - Single Family Homes Closed Sales Up 7.3% - 19,475

Palm Beach County - Single Family Homes Median Price Up 22% to $475,000.00

Palm Beach County - Condo/Townhome Median Price is Up 17.1% to $240,000.00

Palm Beach County - Single Family Homes Months Supply of Inventory Down 52.2% to 1.1 Months 

Palm Beach County - Condo/Townhome Inventory is 1.2 Months

Palm Beach County Total Homes Sales Increased 18.8 % 

from 31,521 Year End 2020 to 37,447 Year End 2021

Palm Beach County - Single Family Home Sales Increased 7.3%

from 18,174 Year End 2020 to 19,495 Year End 2021

Palm Beach County - Condo/Townhomes Transactions Increased 34.5% 

from13,347 Year End 2020 to 17,952 Year End 2021

Palm Beach County - Condos/Townhomes 3.7 Months of Inventory Supply

Palm Beach County - Single Family Dollar Volume Increased 45.5%

 from 12.4 Billion Year End 2020 to $18.1 Billion Year End 2021

Palm Beach County - Condo/Townhome Dollar Volume Increased 62.9%

from $4.5 Billion Year End 2020 to $7.3 Billion Year End 2021

Palm Beach County - Total Active Listings Decreased 58.6% 

from 8,691 Year End 2020 to 3,597 Year End 2021

Palm Beach County - Short Sales and REO's Closed Sales - 0.9% of all Closed Sales