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Today's 2021 hot housing market is one of the peculiar outcrops of the pandemic. South Florida real estate has been booming throughout this pandemic with open house line ups, and multiple offers. Buyers from the Northeast have been flooding the market, seeking out more space and sunshine as well as the tax breaks. Floridan's love Florida because Florida does not have a state tax.
Our real estate market was never filled with a multitude of houses for sale before Covid-19. Yes, this outbreak placed a strain on home buyers and home sellers worried about their health, with lockdowns, vaccines and mask mandates.
The Federal Reserve stepped in to help our current day situation by keeping mortgage rates at an all time low. Mortgages have remained low, making home purchases more affordable, thus, fueling the transactions!
Supply and demand has been the main reason for the increase in housing prices. Lack of inventory in certain price points is impacting sales, particularly for single-family homes. The needs from buyers is higher than our low supply of homes. Foreign home buyers are coming to South Florida, now that global vaccinations are rising, adding to the number of buyers.
To win the bid, most homes are fetching over the asking price. There is more inventory on the market but not enough to keep up with current day demand.
Usually, we see in September being back to school time and the holidays approaching, the housing pricing declines slightly. This year is not the normal year in any sense and no one can anticipate the same scenario.
Currently, mortgage applications are down slightly as buyer fatigue has set in. We are seeing an ever so little decrease in housing prices. The shortage of inventory is keeping the market strong. There is no mortgage fraud which caused the last downturn in real estate, so there is no real reason to believe anything too different will occur in the foreseeable future.
So what is a normal market? Four to five months of supply is average. A lower number means it is a Sellers Market. Currently, Broward county is showing 1.5 months of housing inventory and 2.2 months of condo/townhome inventory.
Wishing you a Happy Labor Day!
Susan J Penn Realtor
954-557-5993
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