South Florida’s Booming Economy Drives Home Prices Skyward, Pricing Some Buyers Out of the Market
While a recent National Association of Realtors report revealed a drop in home sales across the country in October, South Florida’s housing market tells a different story. Here, home sale prices continue to rise, unaffected by the national decline in sales. The industry group Florida Realtors reported that the median home price in the area is now over $600,000, making it increasingly difficult for potential homebuyers.
Searching for a Home in a Competitive Market
Palm Beach County resident Bernard Walter has been searching for a house for the last six months and admits it has been a challenging experience. “I would like to stay under 600,000, but it’s kind of not working,” said Walter. The latest Florida Realtors report indicates that the median home price in South Florida is currently $601,500, prompting Walter to search harder to secure a property before prices climb even higher.
South Florida’s Unique Bubble
Douglas Elliman realtor Alex Kaplin explains that the increasing home prices are due to South Florida’s unique market bubble. “This is a great place to be. We have fantastic weather, there’s a lot to do, there’s great food, the economy is booming, and it’s a beautiful place to live. It’s also very business-friendly,” said Kaplan. As a result, people are moving to the area, driving up prices and pricing some potential buyers out of homes.
Many new residents have wealth and are willing to pay cash for a home, further fueling the competitive market. Kaplan revealed that in October, 63% of townhomes and condos were cash deals, while 47% of single-family homes were purchased with cash. This trend affects buyers like Walter, who depend on financing when purchasing a home. “It’s a lot of cash buyers; can’t really beat cash. They can close in a week, and people want their money,” said Walter.
Additional Factors Impacting Homebuyers
Cash offers are not the only factors contributing to the challenging housing market in South Florida. “Another consideration is the insurance. Insurance has been going up a lot. So the cost of living here continues to go up, but people are just finding ways to, I guess, deal with it and just adapt,” said Kaplan.
Kaplan’s advice for those looking for a home in the area is to be patient and willing to compromise. By considering a move further north or west, homebuyers may find more affordable options and better value for their money.
Stay informed on the latest developments in South Florida’s housing market by following CBS12’s coverage.
Orginal article: Link To Article – provided by Kansas City Realtors