COVID-19 hit the country in early 2020 like a freight train. Before we knew what was really happening, the shutdowns began, followed by widespread disruptions to our lives, our work and our families. Aside from the uncertainty, the loss and the fear that came with the pandemic, those of us in the real estate industry spent months watching and waiting to see what the effect would be on the South Florida real estate market. The stress of dealing with the pandemic’s economic fallout and protecting our loved ones was only part of the picture. The other part was the unanswered questions about the future.
Now, one year later, we in the industry have seen that the pandemic has only increased the desire for South Florida properties. The shutdowns led to working from home, temporarily home schooling our children, and lots and lots of family time under one roof. It seems to be an organic conclusion, then, that many families have decided to buy a larger home, move locally, or relocate to the Sunshine State. As well, the high cost of living in other states has led buyers to Florida for our lower taxes and lower cost of living.
Have you heard the saying about products just “flying off the shelf”? Well, that is in essence what is currently happening in the South Florida residential market! Listing times have shortened dramatically. In some cases, homes are being sold prior to being listed, and then the listings added to the Multiple Listing Service website for “informational purposes.” Prices are rising across the area, as much with luxury properties at the highest end of the range right down to entry level townhomes, condominiums, and smaller single-family homes.
What does this mean to you? If you are a homeowner who has no plans to move, you can sit back, watch the show and enjoy the added benefit of watching values rise in virtually all neighborhoods, including your own. If you have plans to sell, move forward. The market is strong at the moment. Prep your house, interview your realtor and decide where you will go. If you are staying in the area and plan to find a new home, know this: You as a buyer are competing even more than usual with out-of-state buyers, sometimes even international buyers, as well as investors with deep pockets.
Prospective buyers, buckle up for a wild ride! You may find the current market conditions frustrating. It may be that before your offer has been made, the property you seek is gone under contract with another buyer, or that your offer is competing with several others. It is best to be prepared to move very quickly when you find a new property! If you will require a mortgage to finance the purchase, I urge you to pre-qualify for the mortgage and submit proof of that prequalification when you make an offer on a home. (Many, if not most realtors will require this.) With a little homework, a solid realtor to help you negotiate, and some patience, you should successfully find your next perfect home!