Whether you are buying or selling a home in the Miami area, you have probably been wondering quite a bit about the overall state of the housing market. Throughout the first part of the year, the signs of been very promising. The home prices across South Florida increased in January and still seem to be doing quite well.
What Do the Numbers Say?
The median price for a home in Palm Beach County was $310,000 in January. The Realtors Association of the Palm Beaches said that this was the increase of 9% from the previous year. In Miami-Dade County, the median price was also $310,000. The Miami Association of Realtors said that this was an increase of 15% from the previous year.
What Is Making the Home Prices Increase?
Why are the prices still moving upward in South Florida? The answer is simple. There is still a very strong demand for homes in this area. Some realtors also believe there is a lack of quality listings, which is helping to drive the prices of good listings higher. With the existing inventory still tight, it is expected that the prices will continue to increase in the coming months.
Some of the homes that are for sale and that are considered a low-quality listing have issues that would require buyers to put in another $50,000 to $100,000 for renovations this is not something most people want to do. Therefore, they are generally willing to pay a little bit more for a better-quality home. Many would rather walk away from a potential property and hold out for another, better property than to pay for expensive renovations.
It Looks Like Good News for Everyone
The increase in home prices seems to be good news for everybody. Even though the prices are continuing to increase, they are still within the range of many buyers. People like to buy homes when the market is still showing promise and the value of the property they buy has the potential to rise. This is also good news for the sellers, as they are more likely to make a profit when selling their home.
While most people believe that the South Florida area is going to continue to do well, there are those who believe that the market is starting to get a little bit soft. They worry that the prices will start to slow as interest rates rise and more homes come onto the market. This could very well happen, as an increase in supply will often require that the prices start to come down or at least steady themselves. However, even though there is a possibility of this, most do not believe that it will get to the point where the market collapsed a decade ago.
If you’re looking to buy a home, right now could be a good opportunity to see what is available. If you’re selling a home, and you have something great to offer, you might find that right now is a good time to sell, as well.
Resources: Sun Sentinel