Thanks to Hurricane Irma, the South Florida real estate market is favoring sellers.
The hurricane destroyed many homes throughout the state. While Florida rebuilds, the supply of available homes has temporarily been reduced.
Typically, inventory decline has an opposite effect on home prices. In August, the median home price in Miami-Dade County increased by 13 percent. This increase occurred prior to the hurricane.
With supply further decimated by the hurricane, real estate experts project home prices to climb even higher. This is great news for sellers as you are more likely to agree to a higher sale price.
Armed with knowledge, sellers are primed to capitalize. Read on to learn more about the South Florida real estate market and tips for success.
What Are The Hottest Local Markets In South Florida?
Miami-Dade County is not the only local market that is thriving for sellers. Both Broward and Palm Beach Counties experienced an 8 percent spike in median home price.
Home prices in South Florida are rising at a faster pace than statewide homes. For example, statewide median home prices increased by 7%, while South Florida homes increased 8-13%.
The most exciting aspect of rising home values is that sales are up as well. Single-family home sales increased by 1% over the same time period.
How Should Sellers Handle Offers?
First and foremost, sellers need to do thorough research to determine the value of their home.
When supply is limited, patience is a virtue. If the buyers do not meet the seller’s price expectations, it may be better to wait for another offer.
In the wake of the hurricane, some real estate agents are advising clients to make lower offers. These agents believe many buyers are on the sideline due to Hurricane Irma and sellers may accept a lower offer.
The reality is that Hurricane Irma spared the South Florida real estate market. In general, hurricanes have not significantly affected the Florida market over the long-term.
Since 1886, the state of Florida has been hit with twice as many hurricanes as Texas and Louisiana. However, the likelihood of hurricanes has not slowed real estate growth.
Florida homes are very resilient against hurricanes due to strict construction codes and homeowner’s insurance requirements.
Should Sellers Wait Until Spring To List A Home for Sale?
Sellers should not wait for seasonal periods to put a home up for sale. Traditionally, the South Florida real estate market picks up in the Spring as the weather warms and the school year nears completion.
However, a busier real estate market means a larger inventory. And more houses for sale means potentially lower sales prices.
Ultimately, selling in the winter can be advantageous because there is less competition amongst sellers.
Wrapping Up The South Florida Real Estate Market
Home prices are on the rise in South Florida and it is time for sellers to capitalize. One rule of thumb to follow is to be patient and wait for an offer that meets your price expectations.
In addition, you do not necessarily have to wait until Spring to put your house on the market. For any additional questions about South Florida real estate, please do not hesitate to contact us for assistance.