The recent run up in home prices has created substantial challenges for first-time home buyers. With many of them being priced out or unable to compete against cash buyers, many of these would-be homeowners have had to opt to continue renting instead. It is well established that the inventory of homes for sale has been incredibly tight for some time, however this shortage has been even more pronounced in the affordable home market. Often smaller in size, these homes are considered “starter homes” by most people. Could there be relief on the way for this sector in the market? Recent data appears to indicate so.
What the data shows
According to data from the National Association of Realtors®, last month 1 in 3 homes listed for sale in South Florida was considered small. For perspective, small homes are defined as homes between 750 and 1,750 square feet. This increase in the number of small homes for sale is equivalent to a 9.1% year-over-year increase. Needless to say, this is welcomed news particularly for first-time home buyers. Although prices are still rising in many areas, the rate of appreciation has certainly become more modest than in recent months.
The additional inventory of affordable homes for sale is great news for home buyers in the lower price points. With mortgage interest rates still considered to be very low, many buyers should also have more buying power now. With less buyers typically entering the market during the fall months, this should be a perfect time to enter the market if you are first-time home buyer. Although the market is still competitive, the odds of losing out on a home due to a cash buyer with a higher offer has lessened now as compared to the spring and summer of this year. At Live South Florida Realty, Inc. we have assisted many first-time home buyers realize their dreams of home ownership. We can help you as well.
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!