How’s the market?

How's the Market?

First principle: Supply and demand is like a seesaw.

“Sellers Win” Market

SellersWin_Green

Low inventory creates upward pressure on values. The SELLER has the advantage.  Time (meaning one to three years) is on the side of the seller.

“Neutral” or Balanced Market

BalancedMarket

If inventory and demand are balanced, values are normally stable. Neither buyers nor sellers have an advantage.  This type of market tends to be brief, and is usually a transition from one type of market to another.

“Buyers Win” Market

BuyersWin_Red

High inventory creates downward pressure on values. The BUYER has the advantage.  Time (meaning one to three years) is on the side of the buyer.

Months of Inventory

Screenshot 2020-11-20 112717
Screenshot 2020-11-20 112652
Screenshot 2020-11-20 112621

"Sellers Win Market" vs. "Buyers Win Market"

As of this writing, the market is sharply divided.  There are not enough single family houses or town houses to meet buyer demand.  Multiple offers are common, especially in price ranges below $750,000.  The entire condo market, and the market for town homes priced at $1,000,000 and up are experiencing conditions that are exactly the opposite.  Buyers have more than enough to choose from, and values in many locations and price ranges have been declining.

Affordability in our area is suffering with high property taxes and insurance.  The condo market has more variables to consider than the market for single family houses. Oceanfront locations, 55+ complexes, assessments, reserves, litigation and other factors can create unique markets for individual complexes.

Most condo sellers are pricing themselves “out of the market”.  Their properties are listed for sale, but at a price that causes the property to sit instead of causing it to sell. For additional information, please see the two illustrations below, and refer to our section on how to sell your home fastMany of today’s  condo buyers have a “wait and see” attitude, while buyers for single family homes are finding themselves in bidding wars, especially in price ranges below $750,000.

For more exact guidance, please contact Pablo Martin directly at (754) 234-6207.

"Sellers Win Market"

Seller's Market
This is the type of market most Sellers in south Florida are accustomed to. Most of the homes for sale are priced IN the market. Prices for similar properties are in a smaller range. Only those that are severely overpriced are priced OUT of the market.

"Buyers Win Market"

Buyer's Market
In this type of market, most of the properties for sale are actually priced OUT of the market, and have no real chance of selling. In order to be priced IN the market, sellers in a buyer's market must price much more competitively and aggressively than their neighbors. Only the very best deals will sell.

Single Family Homes

The orange columns indicate the average days on market to sell.  The green line shows how much of their asking price sellers got on average, for the properties that sold.

Condos

The orange columns indicate the average days on market to sell.  The green line shows how much of their asking price sellers got on average, for the properties that sold.

Townhomes and Villas

The orange columns indicate the average days on market to sell.  The green line shows how much of their asking price sellers got on average, for the properties that sold.

Last 15 years, all property types, all price ranges

Average Sale price (in red) for the last 15 years

Houses Average Sales Price in Red

It should be noted that the large difference between the average asking price and the average sale price is due to the extremely large number of unsold properties in the higher price ranges.

Condos Average Sales Price in Red

It should be noted that the large difference between the average asking price and the average sale price is due to the extremely large number of unsold properties in the higher price ranges.

Condo Average Sale Price in Red

It should be noted that the large difference between the average asking price and the average sale price is due to the extremely large number of unsold properties in the higher price ranges.

SINGLE FAMILY HOMES

Houses $100,000 to $249,999

Houses $250,000 to $349,999

Houses $350,000 to $499,999

Houses $500,000 to $749,999

Houses $750,000 to $999,999

Houses $1 million to $2 million

CONDOS

Condos $100,000 to $249,999

Condos $250,000 to $349,999

Condos $350,000 to $499,999

Condos $500,000 to $749,999

Condos $750,000 to $999,999

Condos $1 million to $2 million

TOWNHOMES

Townhomes $100,000 to $249,999

Townhomes $250,000 to $349,999

Townhomes $350,000 to $499,999

Townhomes $500,000 to $749,999

Townhomes $750,000 to $999,999

Townhomes 1 million to $2 million

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