South Florida Real Estate Update
By Rubin Wites & Lea Plotkin
July 6, 2013
The market in South Florida like that of most of the country continues to improve. Sales as compared to the same month in the previous year are dramatically, which is to be expected.
The market in 2012 was dominated by short sales, which took on average just over 6 months from start to finish. The numbers that showed on the monthly closings were based on this time frame. The 2013 market has a much smaller amount of short sales and the time to process is now just over 4 months, plus many of the banks are offering a pre-approved process. When this is done all the work has been done before the home has been put on the market and closing can be in 30 to 60 days.
Interest rates stopped their downward trend and in the last 45 days going from around 3.4% to 4.5% or higher, this took everyone by surprise. The change in interest rates combined with steadily increasing prices have bought out both the investors and the regular home buyers, who in many cases are competing for the same homes. This market is reminiscent of the 2nd half of 2000 when the last boom started. Prices at that time were going up from 1 to 3% per month creating a very strong seller’s market. The current market is looking like a repeat of the 2000 market.
Sellers that price their homes at or near current market [those at $400k and below] are selling in days in many areas. In the $400k to $750k range are taking a little longer and selling in a matter of months now. The higher market in the 1 million and above is based on location and has to be taken on a case by case or city by city case.
As the prices continue to rise more sellers are putting their homes on the market, some of which are loosing money. Their homes should be priced on when they would like to move not necessarily on the current market. If they have 6 to 12 months, if they are having a new home built, they should be pricing their home 6 to 12% higher than today’s market. Pricing your home correctly is based on an honest and open discussion of the Sellers needs with their Realtor. We not only listen to our sellers needs and wants we give the advice based on 65 combined years of experience in our market.
In Conclusion if you are in the market to buy the longer you put off doing so the more it will cost you, both in higher prices and higher interest rates- a real double whammy!!
If you are thinking of selling you need to weigh many factors, such as the market where you are planning to move to, how you are going to finance and if you are buying new construction or re-sale.
New construction allows you to lock in the price today so when it closes in 10 to 12 months or more depending on the builder and where the home is, you have a built in profit-but at what interest rate? A lot to think about and it is much easier when you have a professional to bounce things off.
If you are planning on buying a home in South Florida or Selling one, the Team of Lea Plotkin and Rubin Wites, Realtors with Prudential Florida Realty are the realtors you should speak to: 954-802-8451 or firstname.lastname@example.org or Rwites@gmail.com