When a prospective buyer in South Florida is getting ready to make a real estate purchase, there are many different issues to confront. From negotiating terms of sale to investigating title insurance - and then actually attending the real estate closing - buyers have enough of their plates. But some of our readers probably know by now that buyers in the local area have another big problem: sellers are in control of the market right now.
As the housing recovery continues full-steam ahead in South Florida, with real estate transactions being seen through to completion left and right, the real estate market in the local counties represents the quintessential "seller's market." In fact, according to a recent report, the inventory of real estate in Palm Beach County, for example, stood at a five month absorption rate. This means that, as of September, if there was a fictional situation in which no more homes were listed for sale in that county it would only take five months for the inventory to dry up. When the absorption rate is less than six months, the market is deemed to be slanted in favor of sellers.
Negotiating any type of deal will usually involve some give and take between the parties, but when it comes to South Florida real estate it is quite plain that sellers have the upper hand when the purchasing contract is being discussed. The market in the local area has been in a sustained recovery for some time now. So, do buyers have any good news to look forward to? According to the recent report, the answer may be "yes."
The report indicated that the market, as hot as it is, is actually beginning to cool off a bit. That may be because the prime real estate shopping period - spring and summer - has come and gone for the year, but there may be other factors in play as well. If the market tips in favor of buyers, that would represent a dynamic shift that hasn't been seen in South Florida for several years now.
Source: Sun Sentinel, "Real estate notebook: Homebuyers crave more negotiating power," Paul Owers, Oct. 26, 2013