Home sales in South Florida were on the rise in previous years, but now the market seems to be leveling off. This is good news for people looking to purchase homes, and not necessarily bad news for real estate agents as long as they keep a clear head with their listings. Nobody wants a repeat of what happened to the housing market several years ago. However, all signs display that current real estate prices in south florida are indicative of a seller’s market. Real Estate Prices have continued to rise and without much haggling from the buyers. There’s a normal tug of war when it comes to the sale of a home or condo, but the trend has been that most buyers will accept the sale at asking price.
Currently, sales have slowed down due to the rising cost of homes, and also the higher interest rates on loans. It’s much harder to get a home loan in today’s market than it was during the bubble several years ago, and that’s a positive note based on the Price of family houses. People who didn’t earn enough income were getting loans that the banks knew they could not afford, and that has lead to our current situation in the market. The fact that the price of homes and condos in south florida are rising but have leveled off is a good indicator that the market will not outgrow what people can afford. To do so would switch the power structure back to a buyer’s market and prices would go down again to levels that may not reflect real estate investments true value.
As stated before, Real Estate conditions are in the seller’s favor, but not just the agent’s. Homeowners looking to sell have been lucky that homes are selling at higher rates. When a home will only sell for less than its value, the owner can get stuck with a balance due to the bank after closing. This means that they sold their home and still did not make enough to pay off what was due on the mortgage. It’s a sad state when this happens, but south florida’s housing market has been stabilizing despite the rising cost of homes and condos.
Some skeptics believe that there is a bubble burst on the rise despite abounding evidence of the opposite happening. While it’s true that some real estate agents have caught the pricing war fever and try to sell houses for much more than they are worth, one variable does not represent the whole picture. The prices of homes and condos is likely to keep rising at a slow rate in the coming years. People will continue to purchase real estate, and if things stay in the seller’s market, both parties will be satisfied with the purchase. The inventory is available to buyers and will continue to be if sales keep slowing at their current level. As with any home purchase, it’s wise to know what you are getting into before any paperwork is signed.