Image by ErikaWittlieb from Pixabay
With the steady (and sometimes even rapid) increase in home prices in Southern Florida, it may seem impossible for homebuyers to find any kind of bargain in their ideal neighborhoods. But even with a healthy forecast ahead, there are a few tricks that you can use to find something at the lower end of your ideal range.
Like all industries, real estate in Southeast Florida is driven by the available supply of homes weighed against the demands of the buyers. In 2018, analyzers noticed that there was a serious surge of buyers moving to minimize their taxes. It's had a major impact on the luxury market, contributing to the lack of homes in the mid-range market. International buyers have backed off slightly due to a weakened US dollar, but cash buyers are still far more prevalent in the state than the rest of the US (about 35% vs. 20%).
While condo pricing has still risen in the southern part of the state, these homes are still vastly more affordable than a single-family home. It's led many to choose condos in order to keep their finances from collapsing under heavy payments. There's been an increase in the construction of luxury condo units to meet the demand, but it's worth noting that new construction wasn't immediately snapped up by waiting buyers. In other words, there may be plenty of owners willing to compromise on either price or amenities — especially if a new unit has been sitting for quite some time.
Whether measuring condos or single-families, the average home was sold at 90% the asking price. While this may be discouraging for buyers who want to flex their negotiating power, the luxury condo market may have more leeway than you think. 90% is an average that will vary from neighborhood to neighborhood. The slashing of prices has been a general trend, and it's been a boon to those who want to keep their budgets under $250,000. Luxury homes have declined in sales, largely because there are fewer international buyers in the market. In the same vein, the number of cash buyers has also decreased slightly in recent months.
Southeast Florida has grown in popularity and price over the past few years, but the condo market can be the saving grace for buyers who want a quality home without having to sacrifice all their savings. And while single-family homes may have been preferable 20 or even 10 years ago, the communal living spaces offer a degree of unparalleled convenience for residents today.
