It has been well documented that the real estate market has been in a frenzy the past few years. With Americans seeking more space in the home and many having the ability to work remotely, we have seen significant movement in the market. The challenge has been the tight inventory of homes for sale. Already at low levels prior to the pandemic, the housing inventory has contracted in many parts of the country. Particularly during the pandemic, many would-be home sellers decided against listing their homes for sale for fear of potential virus transmission.
Homes selling for $100K above list prices
Nationally during the first six weeks of the year, 5,897 homes sold for at least $100,000 above the asking price. This is a significant increase as compared to the 2,241 sold at these levels during the same time last year. These numbers prove that the market has remained equally, if not more competitive this year as compared to 2021.
As for the South Florida market in particular, we have observed the following in our 3 major cities:
- Miami: 28 homes sold for at least $100,000 over asking price: (up from 4 in 2021).
- West Palm Beach: 34 homes sold for at least $100,000 over asking price: (up from 8 in 2021).
- Fort Lauderdale: 16 homes sold for at least $100,000 over asking price: (up from 1 in 2021)
We are officially in the spring season and fully expect the housing market to remain quite competitive. The recent competitive market has driven median home-sale prices up 14% year-over-year to $376,000. This is just shy of an all-time high. As we move towards the summer, it is expected that more new listings will come to the market and mortgage rates will continue to rise. Although homes are still likely to sell above their list prices, it is expected that the premiums will be lower.
At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!