Everything in life is all about timing. The real estate market is no different. It has been well documented just how crazy the real estate market has gotten over the past 18 months or so. Since the start of the pandemic, more buyers have entered the market in search or more space while more sellers have opted to sit tight instead of having home showings during a pandemic. This has led to many listings receiving multiple offers and bidding wars, leaving many buyers highly frustrated.
According to Realtor.com, there were 18,000 more new listings across the country in August 2021 than there were in August 2020. Even better, there were more entry-level and affordable homes listed in the market this year. While this is great news for buyers, it is certainly still considered a seller’s market. For perspective, a well-priced home in this market may receive 3 offers whereas this same home would probably receive about 10 offers in 2020.
A more competitive selling market
As of August, the number of new listings increased by 4.3% compared to the same time frame a year ago. Fortunately, this increase included more entry-level homes which continues to be an area of huge need. Interestingly, the share of sellers who were forced to make listing price adjustments grew by 0.7% year-over-year to 17.3% of the active inventory. This is the highest share in 21 months and more closely resembles the typical 2016-2019 levels. It is likely that the combination of more homes coming on the market combined with fewer buyers is resulting in this higher frequency of price adjustments.
Florida’s inventory remains tight
This analysis by Realtor.com included 4 Florida metro areas. The number of active listings for The Sunshine State are down in all 4 of these markets.
- Jacksonville: Down 43.2%
- Miami (Miami-Fort Lauderdale-West Palm Beach): Down 46.6%
- Orlando (Orlando-Kissimmee-Sanford): Down 47.7%
- Tampa (Tampa-St. Petersburg-Clearwater): Down 40.7%
Nonetheless, the number of new listings hitting the market did trend up for the month of August. Another area that indicates the state of the market is the percentage of listings that undergo price adjustments. Those results were as follows:
- Jacksonville: 20.6% reduced prices
- Miami: 11.7% reduced prices
- Orlando: 19.3% reduced prices
- Tampa: 20.7% reduced prices
There is no doubt that the housing market is starting to normalize some. With this said, there is still plenty of buyer traffic in the Florida market. As stated above, appropriately priced homes are still selling quickly and oftentimes with multiple offers. Although home prices have risen substantially over the past 18 months, the historically low mortgage interest rates continue to provide buyers with more buying power. Lastly, as we enter the fall months it is largely expected that home buyer demand settles down some. Of course, the continued wild card in this market continues to be the impact from the COVID-19 delta variant. As more employers decide to adopt a remote working environment, this should keep the demand for Florida housing high as more people look to work from paradise.
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. At Live South Florida Realty, Inc., we have 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!