All signs are indicating that this spring home-buying season may be the most competitive ever. As a matter of fact, a recent report indicated that 39% of homes sold above their listing price during the four-week period ending March 21, 2021. This is actually an all-time high. For perspective, this figure is 15 percentage points higher than during the same stretch of time a year ago.
Overall, the median home sale price was $331,590. This equates to a 16% increase from this same time last year. Of course, it is important to note that some of these numbers may be skewed due to the various stay-at-home orders that were going into effect at this time last year.
More buyers priced out
A major concern with the rapidly rising real estate prices is the increased number of home buyers being priced out. In particular, this is concerning for first-time home buyers. Unfortunately, many would be sellers are hesitant to list their property for sale either due to the pandemic or not having a home to move to after a sale. Thus, this is putting more strain on the already tight inventory. While new construction is ticking up, it is not enough to make up for the lack of existing homes for sale.
If you are a buyer that happens to see a property of interest, you will need to act swiftly. Some recent data shows that 58% of properties under contract had accepted an offer within two weeks of being on the market. Furthermore, 45% of properties under contract had accepted an offer within the first week.
Summary
As we head into the spring home-buying season, it is highly recommended that buyers have a plan in place. This should include their pre-qualification letter (if financing), a targeted area with price range, & the ability to remain flexible to act swiftly on any homes that hit the market. The South Florida market is currently more competitive than typical markets throughout the country. For this reason, it is imperative that buyers work with a local and knowledgeable real estate agent. Oftentimes, buyers may even consider submitting a contract offer for a property that is sight unseen. This will at least get the process started and you may always submit a release and cancellation of contract should the contract be executed and anything change during the inspection period.
Do you have questions about the South Florida real estate market? We can help. Contact Live South Florida Realty, Inc. today!
