The headlines for the past 18 months or so have not been very positive for prospective home buyers. Limited inventory of homes for sale, increased competition from other buyers, a higher prevalence of cash buyers, and a record number of bidding wars have certainly made it a difficult environment. However, there may be some hope on the horizon for these home buyers. According to the National Association of REALTORS® (NAR), existing home sales slowed down considerably in the month of August. In fact, all four regions across the country experienced declines on both a month-over-month and year-over-year basis.
Breakdown by region
Midwest
Existing-Home Sales: 1.37 million (-2.1% year-over-year)
Median Price: $272,200 (+10.5% year-over-year)
Northeast
Existing-Home Sales: 730,000 (-2.7% year-over-year)
Median Price: $407,800 (+16.8% year-over-year)
South
Existing-Home Sales: 2.55 million (-0.8% year-over-year)
Median Price: $303,200 (+12.8% year-over-year)
West
Existing-Home Sales: 1.23 million (-1.6% year-over-year)
Median Price: $507,900 (+11.4% year-over-year)
Summary
As we enter the fall months, it is largely expected that we see declines in home sales as we return to normal seasonal patterns. It is important to interpret this data with some caution due to the fact that we experienced an abnormal surge in the housing demand in Q3 & Q4 2020. Therefore, the current year-over-year sales data is being compared against a significantly higher than normal baseline.
Although the fundamentals of the housing market remain strong, we should see a slowdown in activity during the next few months. With this said, prospective buyers should be able to expect less competition for homes. Of course, in certain markets this may simply mean that there are 3 to 5 competing offers as opposed to 10 to 15 competing offers like we have seen in recent months.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. 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!
