With many prospective home buyers feeling frustrated from being outbid on homes during the crazy competitive spring and summer months, this fall may present the best home buying opportunity that has been seen in the past 18 months. Typically, buyer activity peaks during the spring and summer months and then cools off a bit during the fall and winter months. Of course, with The Great Reshuffling, we have seen even higher levels of activity even during the typically slower months. This has particularly been the case in the South Florida market given the number of people relocating to our area.
Reasons to buy this Fall
There are several signs to buy a home this fall:
- Less competition from other buyers: As is typically the case, seasonal effects result in less home buyers in the market. This is particularly the case as we approach the holidays from about mid-November through the end of the year.
- Listings are receiving less offers: With the slightly higher number of home buyers on the market, listings are receiving less offers than earlier in the year. This is resulting in less bidding wars leading to frustrated buyers missing out on properties.
- Inventory is improving slightly: A recent analysis showed that nearly one-third of the 50 largest metros saw increases in the number of newly listed homes compared to last year. South Florida is still seeing some inventory challenges in many markets though. For perspective, there are still fewer homes for sale than a year ago, and less than half as many as two years ago before the pandemic.
- Mortgage rates are poised to increase: Given the record level of inflationary pressure, The Federal Reserve has indicated that mortgage rates should begin to rise as early as this month. This steady increase in rates is expected to continue throughout 2022. Needless to say, for buyers obtaining financing, it is likely that buying power will be higher this fall as compared to next fall.
Summary
One endpoint that buyers and their real estate agents can keep an eye on is the number of days on the market for typical properties. As this average time on the market increases, it is a clear sign that perhaps it is not as competitive as it was earlier this year. If more properties are staying on the market for several weeks instead of several days, this may be a good indicator for buyers to re-enter the market. As always, a local and knowledgeable real estate agent will be better able to guide you with these market analytics.
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!
