Tuesday, March 2, 2010

South Florida Real Estate Market Today


South Florida Real Estate Market


Since the media is not doing a great job conveying real and relevant facts and figures (that means spending time delving into specific markets, taking figures, analyzing them and then offering to the consumer accurate reports), the consumer gets to read general information, instead of specific: in this case, South Florida Real Estate Market.

There is nothing general about real estate, everything is very local. However, as far as Florida is concerned even the general and greatly distorted information gives you a good sense of what is actually happening: Florida is showing an increase of 31% in sales volume 2009 vs 2008, whereas the national growth is 4.9! Read more.

Then, comes the issue of offering 50% of the asking price, thinking all sellers here are desperate. Well, I have some more news for you. The properties in South Florida are offered at current market value, so that they are competitive. If it is a private seller, there is room for little negotiation; if it is a foreclosure, the banks do not negotiate, since they have priced it in such a way that it attracts multiple offers.

My reports study shows that 97% of the foreclosures sell 5-15% above asking price. That clearly indicates that the Florida market had hit the bottom and has been going up the second half of 2009 and in South Florida Real Estate Market specifically, the entire 2009!

The same report shows that although volume has increased drastically, prices have dropped 10%, mostly because of the foreclosures.

Being more specific, South Florida shows about 6% increase in Dade and Broward combined and going still up strong the beginning of this year, and that is in addition of the overwhelming growth in sales volume!

I understand that everybody is looking for a deal but what I cannot understand how is it possible that most of the Canadian buyers and even local folks from up North than the asking price, whereas the regular sales customarily sell for 3-10% lower than asking price.

This is actually the truth. And, on the bright side, the prices are still about 30-40% below the prices in 2006, 2007, but here’s the caveat: in ANY location and in ANY price range, the properties in the very bottom of the market tier, go fast and sell higher. To illustrate this in an example: 3/2 1700 sq. ft. newer home in Miramar-Pembroke Pines: the lowest pricing was $190,000 7-9 months ago and it is $230,000 now.

If you are shopping at the very bottom, you need to be ready, act quickly, make your “highest and best” and expect multiple bids. In addition: cash rules, FHA financing- does not.

===
Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM
ZipRealty, Inc. Licensed in FL
kate@hollywood-beach-real-estate.com

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