South Florida residents who have ever thought of “testing the waters” of the residential real estate market have likely thought that they should wait for the right moment. But, when is the right moment? How do potential buyers know when is the right time to jump in?
In most cases, potential buyers will want to see prices that are either holding steady or declining in any given market – signs that indicate that the market is slanting toward a favorable position for buyers. When prices are decreasing in a residential real estate market, sellers may be more inclined to accept the first offer they receive.
Unfortunately for potential buyers in the local market, a so-called “buyer’s market” isn’t likely to manifest in South Florida any time soon. According to a recent report, some experts are expecting sales prices for residential property to hold firm over the next two years. In fact, one expert described the chance of price decreases in South Florida over the next two years as “minuscule.”
Any of our readers who are familiar with previous posts here know that the residential real estate market in South Florida has recovered much more quickly than other markets throughout the country. Prices have been climbing as demand has surged – even as residential development continues to supply more inventory. The ever-increasing supply of inventory has had some experts expecting the residential real estate market to take a turn in favor of buyers sooner rather than later. But, if this recent report is to be believed, that won’t be the case within the next two years.
Source: Sun Sentinel, “Falling home prices? Don’t count on it, report says,” Paul Owers, June 29, 2016