Real Estate in south Florida has always been a hot commodity.  However since the reopening after last year’s lockdowns, the market has been exploding.   Month after month we have seen a steady increase in the sales price for homes in South Florida.  Even with property values increasing, the demand has not let up.  

The reason for this increased demand is caused by a few factors.  First of all, since the pandemic many companies are continuing to allow their employees to work remotely. With this luxury, many families from California, New York, New England and other colder climate states are seeking the warm weather and beaches South Florida has to offer.  Moreover with increasing rental prices and lowered interest rates, many south Florida residents are seeking homeownership.

No one expected the market to stay this strong for this long.  Over a year later since we began reopening, the only significant change is that the supply of available homes for sale is starting to reduce.  As a result homes for sale do not last long on the market, and are getting multiple offers.  Leading to bidding wars for potential buyers.

In the second quarter of 2021, we have seen that at least 1% of all home sales are selling for as much as 30% above list price, almost double from the first quarter of 2021. Whether or not homes are getting offers significantly above asking, we are seeing single-family homes and condo median sales prices at a 20% increase in south Florida.  

“You have upward pressure on prices from appreciation in the neighborhood,” said Chris Glynn, senior economist at Zillow. “When the house down the street sells for above listing price, people ask what they could get for their house too.”

We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.

 

According to Craig Studnicky, principal of Miami-based brokerage ISG World, the condo market has been pretty stable for the past two to three years.  Even with many people relocating to south Florida, condo prices per square foot have remained the same.

Though the average sales price rose, according to Studnicky, that was mostly due to the fact buyers were buying larger units than seasons before.

However, Studnicky says the trends are looking to a stronger market for sellers by the end of 2021.

Dwindling Inventory

Of the 19,465 Condos that were either recently built or under construction in eastern Miami-Dade and Broward county, only 881 units (4.5%) remain unsold in the market, according to ISG World. Compared to December 2020 (1,324 units unsold), the first half of the year has already depleted the available inventory by one third.

According to Studnicky, based on market trends, local condo inventory will continue to dwindle.

Still Under Construction Almost Sold Out

New condos are mostly getting bought up before construction is even complete. 

The Elysee in Edgewater, the Estates at Acqualina, the Monaco Yacht Club & Residences in Miami Beach and many other condo buildings under construction are over 90% pre-sold.

Interestingly enough, the recent uptick in condo sales was not international buyers, but rather mostly led by domestic buyers.  This was likely caused by Covid-19 travel restrictions and the strength of the US Dollar, which reduced the amount of Latin American buyers compared to past years.

Champlain South Tower in Surfside in June.

The collapse of the Champlain South Tower in Surfside was a tragic event for all the families and friends of the victims as well as our community as a whole. This has led buyers to steer away from purchasing condos in older buildings.   Though inventory was already low, of the 12,382 units available in the tri-county area during the second quarter, almost half of them were built on or before 1990.  Currently local governments are forcing building owners to do the maintenance and restoration work.  Nonetheless, buyers are leaning towards newer units.  Which means only half the available inventory is being considered by a majority of buyers.

We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.

Buying a single Family home in South Florida just got more expensive. Latin American Buyers and big Tech Firms could be the reason why. 

According to the latest Sales Report provided by the Miami Realtors Association, the Miami-Dade County experienced a 5% increase in the median home sales price in the month of April – $515K from $491,250 in March. 

The same report reveals an 18% increase for single-family homes in Broward County, reporting a median sales price of $464K, compared to $383K in March.

Ever since mid-2020 the continued migration of Northeast and West Coast buyers has translated into a steady rise of home prices in Miami-Dade. In May 2020, the median home sales price was $375,714 for a single-family home, almost $140K lower than it’s current rate. 

This phenomenon has been fueled (in great part) by the relocation of big Finance and Tech Firms to Miami and its surrounding areas. The expansion of firms such as Blackstone and Thoma Bravo has brought with them a great number of their employees to the Sunshine state.

Florida has also seen a surge of Latin American buyers in recent months. As a means to protect their capital, affluent Central American investors have set their eyes on Florida’s real estate. They view investing in South Florida properties as a way to park their money at a time where their countries are struggling to recover from the impact caused by the Coronavirus. 

Year-over-year, the total number sales in Miami-Dade rose by over 150%, from 1,576 in April 2020 to 3,960 in April 2021. The median home sales price rose 35% YoY, from $382K in April 2020 to $515L in April 2021. And the median sales prices for condos increase 23% YoY – $325K in April 2021 from $265,500 in April 2020. 

The market in Broward county also experienced exponential growth. Total sales climbed 103.9%, from 1,965 in April 2020 to 4,006 in April 2021. Sales for single-family homes and condos surged by 80.9% and 126.9% respectively.

We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.

Ever since the early days of the Covid-19 pandemic, South Florida has lured in real estate buyers from densely populated states, such as New York and California. Florida’s lower taxes, favorable weather, and relatively low number of Coronavirus cases have made the Sunshine State a no-brainer when it comes to purchasing real estate. In 2020, these factors kept real estate sales soaring high while other markets nationwide were decreasing. But, is this still the case in Q1 of 2021? To put it short… Yes!

The MIAMI Association of Realtors together with the Multiple Listing Service (MLS) reported a double-digit increase in sales for February 2021. This would make it the sixth consecutive month where sales increase reach double-digit levels. The median list price of properties also saw a 4.9% YoY increase in February 2021, sitting at $398.000.

While the real estate market in cities like Manhattan and San Francisco are still struggling to get back on their feet, predictions for the Florida market forecast non-stopping growth for the foreseeable future.

The question is, why are Florida’s housing sales still booming in 2021? Here are a few important factors:

  • Friendly tax environment: Florida is one of the 7 states in the US without personal income tax or property tax. Over the years, the Sunshine State has ranked as the 2nd best state for business, the 3rd state with the best corporate tax environment, the 4th lowest private-sector unionization rate, and has permanently been among the top five states with the best business tax climate.
  • Highly Attractive Location: South Florida is known for its beautiful views and year-long favorable weather. The climate in the Sunshine state averages around 81 degrees in the summer and 60 degrees in the winter. Its wonderful beaches and various touristic locations make Florida a highly desirable place to live.
  • Strong Real Estate Market: Over the past year, Florida’s median home values increased by almost 8%, and median sales prices for single-family homes have seen YoY growth for 110 consecutive months. And also considering the fact that the dollar volume of single-family homes rose almost 23% in 2020, reaching $125 Billion.

Add all of this to less strict masking requirements, a low number of Covid-19 cases (compared to other US locations), a strong renters market, and an overall better quality of life, and it’s easy to see why out-of-state buyers are going out of their way to get a piece of Florida’s real estate.

We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.

 

 

 

 

 

Despite the COVID-19 breakout, Real Estate sales have seen a noticeable increase throughout 2020, compared to 2019. A continuously growing number of people are in the hunt for properties, especially among the younger generations. This is remarkably true in the state of Florida, which has seen record-breaking numbers in the final quarter of the year. However, while Florida sales are staying strong, real estate sales nationwide appear to be slipping. 

The National Association of Realtors stated that pending home sales fell in October 2020, in their recent Pending Home Sales Index. This index forecasts home sales using the number of contract signings as a basis. The report showcased that contract signings fell 1.1% (to 128.9) in October, which would be the second continuous month that reported a decline in the index.

Sharing his insight, Lawrence Yun, chief economist for The National Association of Realtors said, “Pending home transactions saw a small drop off from the prior month but still easily outperformed last year’s numbers for October. The housing market is still hot, but we may be starting to see rising home prices hurting affordability.”

Yun also mentioned that the inventory of homes for sale, along with mortgage rates are at all-time lows.

“The combination of these factors – scarce housing and low rates – plus very strong demand has pushed home prices to levels that are making it difficult to save for a down payment, particularly among first-time buyers, who don’t have the luxury of using housing equity from a sale to use as a down payment,” said Yun. “Work-from-home flexibility has also increased the demand for both primary and secondary homes.”

However, while nationwide real estate sales are beginning to slip, Florida reports a non-stopping growth in residential real estate sales. Ever since August, Florida-based realtors have observed an outstanding increase of signed contracts, especially in South Florida. 

The increase in sales is most remarkable in Broward County, where the number of newly signed contracts for condos rose 85.9% in October 2020 compared to October 2019. This report was based on the number of contracts on condos and houses listed on the Multiple Listing Service.

People from different states within the US represent a great number of recent Florida homebuyers, mainly coming from Boston, California, and New York. International buyers are also in search of properties, most coming from Canada and Mexico. 

A few factors contributing to this recent surge in home sales in Florida are:

  • Work From Home Capabilities: With more companies and jobs enabling their workers to work from home due to the Coronavirus, people are able to move to Florida while keeping their salaries from their respective states. And since California and New York salaries, for example, are usually greater than Florida salaries, moving to the Sunshine State becomes an interesting option to consider for many people. 
  • Desirable Location: Warm weather and beaches make Florida attractive for potential homebuyers
  • No State Income Taxes: Florida is one of the 7 states in the US that does not impose an income tax, making it a major advantage for many – especially to those in high-income households.

Real Estate sales seem to be reaching a peak nationwide. In great part due to the increase in housing prices, as a consequence of low housing inventory. However, Florida sales continue to skyrocket and show no sign of slowing down.

We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.

While historically the homebuying season reaches a peak towards the last quarter of the year, 2020 has proven to be a remarkable exception. A continuously growing number of people are in search of acquiring a home, and the spike has not shown signs of withering down. And amongst the seeking homebuyers, experts have observed a distinct increase in Gen Z’s and Millennials shopping for homes. 

The National Association of Home Builders (NAHB) revealed in their latest Housing Trends Report that the share of Gen Z’s and Millennials searching for homes has increased in comparison to the third quarter of 2019. 

They stated that “Between the third quarters of 2019 and 2020, the share of Gen Z adults planning a home purchase rose three points to 14%. Millennials, however, are the generation most likely to be considering buying a home (22%).”

The NAHB also observed that over 80% of Gen Z potential homebuyers are first-timers, compared to 64% of Millennials.

Offering an explanation for the recent increase in home buying activity in the younger generations, Chief Economist for First American, Mark Fleming, explains that they are growing into their prime “home-buying years”

Mark stated that “Record low mortgage rates and millennials continuing to age into their prime home-buying years has boosted demand…”

Record low mortgage rates also play a fundamental role in the increase in homebuyers in general as it allows for more purchasing power in the community. 

Chief Economist for the National Association of Realtors (NAR), Lawrence Yun, provides insight into this circumstance.

“Home sales traditionally taper off toward the end of the year, but in September they surged beyond what we normally see during this season…I would attribute this jump to record-low interest rates and an abundance of buyers in the marketplace, including buyers of vacation homes given the greater flexibility to work from home.”

However, as more buyers enter the market, competition in acquiring homes also increases. This in addition to a noticeable lack of housing supply may cause aspiring homebuyers difficulties in finding a suitable property for their needs. 

As Mark Fleming says “a lack of housing supply remains a challenge.” And Lawrence Yun adds “There is no shortage of hopeful, potential buyers, but inventory is historically low.”

Due to the decrease in mortgage rates, now is an ideal time for homebuyers to acquire a property, especially amongst the younger generations. Likewise, it is also an ideal time for realtors, as buyers and sellers are continuously seeking the guidance and assistance of trusted professionals in their pursuit to buy or sell a home. 

We, at Title Partners of Florida, write and support the real estate transaction closing, including the issuance of title insurance policies through Attorneys’ Title Insurance Fund. We also coordinate searches, title products, and a variety of other services for our clients. Contact us with any questions about our real estate closing services by phone at (844) 321-6168 or by email at titleinfo@titlepartnersfl.com.