We have officially entered the 3rd spring home buying season since COVID-19 emerged. Although most people did not know what to expect from the housing market as we entered the pandemic, it is safe to say that insatiable demand resulting in skyrocketing prices was not expected by many (or any). As lock downs began to take hold across the country with a push towards social distancing, many Americans looked for more space as the home became the epicenter for work, school, and other aspects of life. The net result has come to be known as “The Great Reshuffling”.
Since the spring season is officially upon us, we are now entering the spring home buying season. What can we expect? A recent survey of real estate brokers shed some light on this topic.
A shift in buyer mindsets
The insatiable buyer demand combined with a lack of inventory is resulting in may homes selling for above their list prices. As a result, we are seeing bidding wars becoming more prevalent than ever. With an increasing sense of urgency from buyers, we are seeing quicker decisions being made. To put it another way, many buyers are now stating that “they won the bid” instead of that “they bought a home”.
Another interesting observation from buyers in this market is that more of them desire a home that does not require much remodeling work, if any. With many buyers focusing on their careers, they do not have the desire to deal with a home renovation after their purchase.
A shift in seller mindsets
The current housing inventory conditions are certainly giving new meaning to the term “seller’s market”. Unfortunately, a byproduct of this environment is unreal expectations and irrational pricing demand from sellers. In some ultra-hot markets such as the South Florida waterfront market, many sellers are leveraging the high number of cash buyers. With this said, many are setting ultra-aggressive list prices but only considering cash as a term for purchase. In other words, they are listing their properties at a “make me move” price. Although this strategy can find success from time to time, most buyers are more educated than ever on appropriate market valuations.
All in all, the spring home buying season is expected to remain very competitive. As COVID-19 cases continue to decrease, this should encourage more homeowners to consider listing their homes for sale. Barring a new COVID-19 mutation outbreak, we should see more homes being listed for sale. For buyers, the rest of the year will essentially be a race against time for rising mortgage rates. Sellers should be cautious to not price their homes too high as buyers are more educated than ever. In fact, appropriately priced homes in this market tend to sell above their list prices and ultimately sell for more money than homes originally overpriced. As always, a local and knowledgeable real estate agent will be best able to guide you through this process.
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!