Did you know? In 2020, over one-third (34%) of Florida single-family home sellers cashed out and received their original list price or more. Interestingly, in November and December approximately 40% of sellers sold their homes at their original listing price or higher. For perspective, between 2015 – 2019 this was true for about 26% of sellers.
Inventory constraints
The Florida single-family home market ended 2020 with 1.8 months’ supply of inventory (MSI), meaning the amount of time it would take to deplete inventory at the current sales pace if no additional homes entered the market. For reference, analysts tend to use 5-6 months as the benchmark for a balanced real estate market. Needless to say, the current market strongly favors sellers. While more sellers listed their properties for sale in 2020 as compared to 2019, this was still not enough to meet the continued strong buyer demand.
Home demand by price tier
While we have seen increased demand across all price tiers, some price ranges are seeing a higher proportion of homes achieving above asking prices. Nearly 50% of homes in the $150,000-$300,000 range closed with offers equal or greater than their list amount at the end of 2020. As for the luxury market of homes priced at $1 million, approximately 19% sold for prices above asking.
Summary
It is no secret that the housing inventory has been tight for some time now across the country. In South Florida in particular, the strong demand has been exacerbated by more Americans relocating to The Sunshine State. With more homes selling above original list prices, bidding wars have become quite common. As we approach the typically strong spring home buying season, now may be a great time to list your property for sale. Not only will sellers be able to take advantage of the high prices and tight inventory, but with historically low interest rates more buyers are entering the market. Contact Live South Florida Realty, Inc. to discuss your home marketing strategy today!
