Many prospective buyers in South Florida have found themselves in the following scenario in recent months: they have found the house of their dreams, they’re ready to put in an offer and then they find out that there are already several other offers on the home. After years of doom and gloom in the national real estate market, South Florida became a hotspot for real estate transactions over the last several months – one of few in the country. However, inventory of residential property in the area, by national average standards, has been pitifully low. Sales prices have shot up increasingly as well. The result has been the scenario outlined above: bidding wars.
Fortunately, there may be some relief in the near future. According to a recent report, the tight inventory of residential property is beginning to see more listings, which should provide more options for South Florida residents in the market for a home. For several months now, if not longer, the local real estate market has been the quintessential “seller’s market,” and all anyone selling property in the area has had to do is sit back and smile as buyers fight over their property. The substantial increase in all-cash buyers has also probably been quite a pleasant surprise for property owners who may have thought they’d never be able to sell.
The recent report mentioned a couple of reasons for easing concern about inventory. First, more properties are being listed. Second, investors are not buying at such a rapid pace. And, lastly, new construction projects that kicked off at the first sight of an upturn in the real estate market are finishing up, and the result is new homes and condos for sale.
Source: Sun Sentinel, “Inventory crunch easing up for home buyers,” Paul Owers, Aug. 31, 2013