South Florida Housing Market Update [December 2020]
Hey, it's Andy with the Mandel Team at RE/MAX, and I'm here to bring you your December 2020 housing market update. As always for the purposes of this video, we're gonna be talking about single family homes only in Boca, Parkland and Coral Springs. Those are the areas where our team does the predominant amount of our business, and in Boca we're not talking about any country clubs or any 55 and over communities. So, all the ages, single family homes, no country clubs.
Now, in these videos, we wanna give you the leading indicators to show you where the real estate market is going to be headed in the next 30, 60, 90 days, not the lagging indicators like closed sales, which is indicative of what happened 30, 60, 90 days ago. These stats are gonna show you what's going to happen in the real estate market coming up. The first step we like to look at is the number of new homes hitting the market.
From November of 2020, compared to November of 2019, we saw 5% fewer homes hit the market. So less supply. At the same time the next thing we like to look at is the number of homes going pending and coming off the market, that is up 32%. Fewer homes coming on the market more home selling that leads to a supply and demand imbalance. And as we've seen all year it's the same situation, lots of demand, very little supply, and the homes that are on the market are selling faster, so that's exactly what we saw last month.
The average days for a home to sell was just 17 days, that is down 64%. So homes are selling twice as fast, it is absolutely insane, and depending on the price range that you're looking in, if you're looking at maybe the 300 to $500,000 price range, its really 24 to 72 hours tops for a lot of these homes to be getting multiple offers, there is a ton of demand out there right now.
The last step we'd like to look at is the number of months supply of inventory. So what this stat means is that if no more homes were to come on the market, how long would it take at the current pace of sales for all of the homes on the market to sell, and right now we're looking at 1.83 months worth of inventory.
Typically anything less than six months is a sellers market, anything more than six months as a buyer's market. So at 1.83 months, that's less than two months that all of the homes that are currently on the market would sell. That is a very, very strong seller's market and that's basically what we've seen all year.
So what does this mean for you if you're a buyer or a seller? Well, if you're a buyer what we've been instructing our clients to do is to get fully underwritten and pre-approved upfront with our local preferred lenders. And the reason why we're doing that is we're able to basically write an all cash offer even though they're getting financing, we can do the inspection, we can do the appraisal and they have their loan approval all within that first 10 days, so that's able to be a very, very, very strong offer and then get your offer accepted without potentially going into a bidding war or, you know, they're having these crazy terms, you're able to do everything up front, that's very appealing to a seller and it's helping our clients offer stand out when these homes have five, six, seven offers in 48 hours.
Now, if you're a seller what does this mean for you? Well, there's almost never been a better time to put your home on the market, with such little inventory even going into the holiday season, there's a great demand and you can get probably more money than you even think for your house even though we're coming into the holiday season, the buyers that are out there looking are very, very serious, so don't think that they're going away because Christmas is right around the corner or New Year's, they are still out there in droves, they're still writing offers trying to find houses. So if you're thinking about selling now could be the perfect time. Give us a call, shoot us a text, send us an email, let us know whether you're buying, selling, renting, or investing, how we can help you succeed in this market. Thanks for tuning in. I'll see you next month.