We all know that the real estate market, particularly in South Florida, has been red-hot for the past year or so. Just how red-hot? The recent Confidence Index Survey conducted by the National Association of Realtors (NAR) sheds some light on this issue. This April 2021 survey was sent out to 50,000 real estate agents along with 6,686 respondents from the previous three surveys. The survey ran from May 3 – 10, 2021 and had 3,541 respondents.
What did we learn from the survey?
As expected, the real estate market continues to be ultra-competitive with buyers facing increased competition for a limited number of homes for sale. Below are some of the key findings:
- nearly 50% of homes sold for more than their list price
- 25% of all transactions were cash sales
- homes sold within 17 days on average (down from 27 days a year earlier)
- first-time home buyers represented 31% of all buyers (down from 36% a year earlier)
- homes that sold had an average of 5 offers
- 85% of buyers purchased a property in a suburban, small town, rural, or resort area (same as the prior year)
- 60% of buyers were specifically looking for work-from-home features in a property
Although these results are not surprising, the question on most people’s minds is: Where is the real estate market heading? It is evident that double-digit price gains can not continue forever, however inflationary pressures continue to worry many Americans. According to the NAR, home prices are expected to increase 6% over the next 3 months from the prior year, and almost 3% from last year’s sales levels.
South Florida continues to be one of the hottest markets in the country, particularly with Americans relocating from states with higher costs of living. Are you thinking about buying or selling in South Florida? We can help. Live South Florida Realty, Inc. has been a trusted name in South Florida real estate for many years. We are ready, willing, and able to assist you as well.