The South Florida market has always been known nationwide as one of the hottest markets of the country, often outperforming the national averages. After the hit of the pandemic of the novel coronavirus in 2020 and the mandatory lockdowns, this natural movement gained even more strength with many of the once seasonal visitors deciding to trade their small pieces of real estate for larger square footage properties in the year-round summer state.
The year of 2021 has been marked for the continued housing demand and rising home prices, a tendency that has continued throughout 2022. The housing shortage has continued and, although expected to eventually ease, this seller’s market is expected to remain during this year, making this a great opportunity for anyone fencing about selling.
Below you will find 5 reasons why this is the best time in years to sell your home in South Florida, and why you should take advantage of the current market.
1. Home buyer demand is at an all-time high
After the toughest period of the pandemic in 2020, Florida was one of the first states in the country to loosen up lockdown restrictions, what made out-of-state homebuyers come to Florida eager to make up for lost time. The real estate market saw a strong rebound, especially in South Florida, where the sales went up 44% – the highest jump since 2001(1).
2. Home inventory remains low
Even though the number of buyers has had a big jump, the number of homes for sale to actually meet this demand is at an all-time low. There’s simply not enough supply for the growing market, and the housing inventory actually went down. Compared to 2021, there was a decrease of 27% in the inventory, what leads to an increase in the home prices.
3. Home prices are up
With demand up and inventory down, home sellers are now able to sell their properties for much higher prices. Home asking prices have for the first time surpassed the pre-2008 market, making this the ideal to sell.
4. Mortgage interest rates are still low
Not only inventory is low and search is high, but also the mortgage rates are still low. Even now, being higher than the 2020/2021 interest rates (when we hit a record low of 3.07% for a 30-year fixed mortgage), the interest rates are still low, which can mean tens of thousands less over the lifetime of the loan.
5. This is the best time to sell in years
Along with all the factors mentioned above, people are spending more time at home in general. Not only remote work has increased, but also a need to enjoy more the home has sparkled in homeowners/homeowners-to-be. This makes it much easier to sell a property. That not to mention the cash buyers, who are paying more than ever, are easy to deal with, close fast, and will save the seller time and headaches with showings, inspections, and appraisals.
Putting all these factors together, we can safely say this is the best time in years to sell your home, especially in the South Florida market. If you are interested in selling your home for cash in an easy process, feel free to give us a call for a free evaluation – you won’t want to miss this opportunity out.
(1) According to the National Association of Realtors® Home Sale Index.