What does being in a buyer’s market or seller’s market really even mean?
As you may or may not know, a buyer’s market occurs when there is more supply than demand in an area; meaning more homes are for sale than are being purchased. A seller’s market is the exact opposite – when there is more demand than supply. If you’re trying to determine the status of the market in Fort Lauderdale, there are a number of factors to consider.
Watch for significant price drops on houses
Are prices dropping significantly in a certain area of Fort Lauderdale? Are prices holding steady around the asking price and being sold soon after? In certain circumstances, you may even see that a property sold for more than its asking price. This usually means that there was some type of bidding competition – largely pointing to a buyer’s market.
The Miami-Fort Lauderdale area recently ranked number six on Zillow’s top buyers’ markets. These rankings were based strictly on negotiating power though, not value or affordability.
Look at number of days on the market
Another factor that contributes to the health of a real estate market is the average amount of time local properties remain available and on the market. This indicates how quickly homes are selling. In hot markets like Fort Lauderdale, properties that are well kept (and are located in great neighborhoods like Coral Ridge, downtown Fort Lauderdale and Fort Lauderdale Beach) are being swept up incredibly fast – leaving many would-be buyers frustrated that they can’t seem to find a home.
While there was a large surplus of homes on the market several years ago, most of those homes have been sold, creating a shortage throughout South Florida. In 2015, Broward County listings were down 7 percent compared to a year prior.
Are interest rates high or low?
Interest rates are another factor that play into the attractiveness of a market to buyers or sellers. If interest rates are high, it is much more difficult for buyers to purchase a home. On the other hand, if interest rates are extremely low, there will likely be an influx of buyers entering the market.
We’re currently in a period of profoundly low interest rates throughout the country. This makes real estate an attractive investment for first time homebuyers, snowbirds, and even domestic and international investors. The median home value in Fort Lauderdale is currently $278,900, which is up almost 8 percent from just one year ago.
In today’s tough market, you need an experienced real estate champion
Despite an extremely competitive market, Tim Singer and his team are well versed in all of the most sought after neighborhoods in Fort Lauderdale. For more information on finding a home or condo in Fort Lauderdale, reach out to Tim and his team today by phone at 954-463-1373 or through his online contact form.