The South Florida residential real estate market has been hot for so long now that many people are probably expecting the other shoe to drop sooner rather than later. After all, with all of the residential development taking place throughout the local area prices will surely start to stabilize and perhaps decrease as some point, right?
Well, apparently that point in time hasn’t arrived yet, at least in Broward County. According to a recent report, the median price for existing single-family homes in that county showed another increase in June. The number came in at $265,000 – which represents a whopping 23 percent increase from June of last year. Not only is this good news in snapshot of a comparison of months, but the reports also indicate that the increase in June was part of a seven-month string of increases.
However, there may be a bit of an impact in the condo sector, perhaps due to the above-referenced land development that is picking up at breakneck speed in South Florida. The reports stated that the data showed a 9 percent decrease in condo sales in June of this year when compared to June of 2012. As more newly-constructed condo units become available, this may be a number that is continually impacted.
But, in the meantime, buyers and sellers who are interested in residential property and are geared toward homes rather than condos will likely see continued increases. This is great news for sellers, but buyers are discovering that a red-hot turnaround in the real estate market means more bidding wars – many of which are ultimately being won by all-cash buyers. In the long-term, this could have quite an effect on the demographics of several South Florida counties.
Source: Sun Sentinel.com, “Broward home prices increase in June,” Paul Owers, July 22, 2013