Today’s inventory in South Florida is abundant and it seems too much to even sell, definitely a buyers market. But consider all the potential buyers on the sidelines, waiting for that perfect moment to snatch a property. Many people from abroad are just waiting for their currencies to stabilize, Millennials are now ready to buy their first homes (and they represent 42% of US home buyers), and people coming out of the 7 year foreclosure strike and now getting the opportunity to purchase again.
The economy is showing strong and job creation in Florida keeps growing meanwhile the interest rates are still considerably low.
All these factors motivate a great year of sales. Already developers of high end properties in Brickell, Coral Gables and South Miami are finishing with projects that are already started but no plans for more developments; maybe until they finish selling what’s on the market. In the entry-level developments there are no current options of developments and are scare for the average buyer to get a hold of new properties on this range, leaving this pool of buyers to purchase resales and not pre-construction.
So by the time all these people in the sidelines purchase all out there, the developers have stopped construction and interest rates go up (they are expected to slowly increase this year), the abundant inventory might not look so abundant anymore. By rates picking up some current home buyers might not want to sell to get into a new and more expensive mortgage. Consequently turning the market again to a sellers paradise where prices go up.
So with all that will come along, I think its definitely the time for first time home buyers to go ahead and jump on the wagon of owning a home. Take advantage of this time before it changes.
Check out this link form floridarealtors.org /