Some people decided to suspend shopping for homes in the hope that prices would fall as home prices soared during the pandemic.
Today, non-buyers are in a state of instability, with record price increases and inventory declines taking a year and a half. I want to buy, but I’m facing a higher price than when I first started searching and found myself. There is a risk of being priced from the real estate market. Nowhere is this more true than South Florida.
Alicia Cervera of Cervera Real Estate in Miami said:
Allie Sinbine and her husband Steve were one of the people who decided to wait for the real estate market after starting to look at homes in June 2020. After a month of shopping, they suspended the search, believing it was likely a home. Prices will start to fall towards the end of the year.
“At the end of the New Year and the elections, I thought things would start to level off and come back to where they were,” she said.
Instead, home prices continued to rise, driving couples further out of the housing market. They’re looking for a three-bedroom, two-bathroom home in the $ 250,000 to $ 300,000 range, but as prices continue to rise, they’ve expanded their search beyond Palm Beach County to Port St. Lucie. I am. They are exploring new construction homes and think they may need to increase their budget a bit.
“We didn’t expect it to be close to 2022, but we still can’t move to it at an affordable price,” says Simbine.
House prices skyrocket, no slowdown
In South Florida, home prices are rising as intense demand from out-of-state buyers, coupled with historically low inventories, has created a fierce seller market where buyers often face offer price payments and bid war defeats. It has skyrocketed.
Brian Pearl, Principal Agent of Boca Raton’s Pearl Antonatch Group, explained that home shoppers can be discouraged and hesitant to buy in markets where buyers often lose and face multiple bid wars. ..
“Given that the market isn’t slowing as much as we’ve ever expected, we regret what buyers are waiting for lately,” he added.
He is not the only realtor to bring clients to this problem. Jeff Creegan of Boca Raton’s Re / MAX Services said that about 30-40% of last year’s clients were waiting for the housing market. Many were wary of buying in the spring or even last summer when they saw prices soar, but only saw prices rise further as the year approached. The overall sentiment is that they made a mistake trying to wait for the market.
Now, when they start looking again, buyers say they’ll be greeted at a house that’s $ 100,000 higher.
As a result, Kriegan says, “We are looking for a variety of markets, including southwest Florida and more affordable markets.”
He himself was looking at a three-bedroom, two-bathroom house in January. He decided to wait, but when he returned home in April, it was priced at $ 480,000. He was able to get it for $ 450,000.
Average selling prices for homes in Miami-Dade County in February 2021 were $ 450,000, up 21% from the previous year, according to figures from Broward, Palm Beach and St. Lucy Realters. The average selling price for homes in Broward County was $ 433,000, up 12% from the previous year. Average selling prices for homes in Palm Beach County were $ 450,000, up 24% from the previous year.
Flash forward in October 2021. Median selling prices rose 19% year-on-year in Palm Beach County to $ 500,000 in October. In Broward County, the average selling price for homes in October was $ 489,000, an increase of 17.8% annually. In Miami-Dade County, October figures were up 12.6% to $ 490,000.
“Buyer came and asked me at these high prices, do you think we should sit and wait?” No one can predict what will come or the price will go down. “I always say,” said Christina Tokar, a real estate agent at Davie’s Re / MAX Advantage Realty.
Genie Schwartz is another shopper who has decided to suspend the search in the hope that the market will stabilize.
“I’m kicking myself,” she said. She started looking for a home in January within a budget of $ 300,000 to $ 350,000, but found that the property wasn’t as good as she wanted. Almost a year later, prices rose nearly $ 100,000 in the same area she was once looking for.
“I was priced by buying,” she added. “Now the value of real estate is so much higher that I really should have bought something. I feel like I have to leave Florida.”
She also added that she was afraid to buy a home when the market peaked, in case it crashed later.
Eli Beracha, director of Florida International University’s Holo Real Estate School, said the 2007 home collapse is likely to be still fresh in the minds of many potential buyers and why they’re waiting. It could be one of. Housing market.
But Bellacha also said the power to fuel the housing market is different. “Last time it was oversupplied [in 2007]Not this time. Without oversupply, it would be difficult for the market to make major corrections. In other words, he hasn’t seen a dramatic bust in our future.
Out-of-state homebuyer Dr. Ketan Modi, his wife and two daughters, have moved from New Jersey to Broward County looking for a home of about 4,500 square feet with at least four bedrooms.
When they searched earlier, they looked up a Davey community home for a price of about $ 1.2 million, but four months later, the price reached $ 1.6 million, and he and his family were waiting for the market. I started to consider renting.
“Everything is overpriced,” he lamented. “I don’t know when the fix will be made or when the price will stabilize.”
Ally and Steve Simbine were in Lake Worth’s apartment on December 16, 2021. Symbines has decided to wait for the South Florida housing market in hopes of lowering prices. And now I regret it.
Are you thinking of waiting for the housing market?
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