South Florida Housing Market Update [January 2021]

Hey, it's Andy with the Mandel Team at RE/MAX, and I'm here to bring you your January, 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. When we talk about Boca, we're not talking about country clubs or 55 and over communities, it's single family homes only, no condos, no townhouses. Those are other markets, they're completely different so we're gonna focus on single family homes only. In this video, because it's the end of the year and the beginning of 2020, we're gonna talk about how December of 2020 did compare it to December, 2019; and then we're gonna talk about how the whole year did so you can get a greater picture of what's going on in the real estate market over the course of the entire year.

The first thing we like to look at is the number of new listings hitting the market. In December of 2020, that was up about 6%. This is a trend that we've been seeing. We're starting to see a few more homes hit the market in the last quarter of the year, as people are getting more used to COVID and what we'd have to do to protect ourselves, people are getting a little more comfortable with putting their home on the market. So we are starting to see a little bit more homes hit the market, but we're seeing an increase also in the number of homes going under contract. That is up 65% in December of 2020, compared to December of 2019.

More homes are hitting the market, but way more homes selling, they are flying off the market and as you can expect with way more home selling and not a lot to choose from, the days on market, the days that it takes for us to get a home to sell is going way down. So that's down 68% year over year. So the average days on market has been sitting at about two weeks for the last couple of months. Realistically, if you're in this market, I'm sure you're seeing it. The good homes that are priced correctly in good neighborhoods, they're selling in a matter of days, two days, three days with multiple offers. There's a lot of buyer demand and not a lot of homes to choose from.

That brings us to the last stat that we'd like to look at, which is the month's supply of inventory. What this stat means is that if no more homes were to hit the market, at the current pace of sales, how long would it take for every home that's on the market to sell. Six months is generally considered a neutral market. Anything less than six months is a seller's market. Anything more than six months is a buyer's market. We're currently sitting at 1.61 months of inventory. So less than two months of inventory, if nothing else were to hit the market, in less than two months, about a month and a half, every home that's on the market would currently be under contract. That's a really, really, really strong seller's market. We would have to see the number of homes on the market triple or quadruple to get to a neutral or even to a buyer's market.

Let's talk about the year as a whole, 2020 compared to 2019. We're seeing the same kind of trends. So the number of new homes that hit the market was actually down on the year 7% on average. A lot of people at the beginning of this year decided when the spring market was gonna happen, most people in our area sell around the spring and summertime. And because of COVID, everyone just said, well, let's just see how this plays out. A lot of people decided not to put their home on the market and we saw 7% fewer homes hit the market.

At the same time, the number of homes that went under contract and sold was actually up 13%. So even with those homes not hitting the market, the number of homes that went under contract and sold was up 13%. So a lot more home selling, a lot less homes hitting the market. That's been a supply and demand imbalance. We've been dealing with that all year, lots of demand, not a lot of supply.

The average days on market for the whole year for 2020 compared to 2019, was actually down 42%. So homes are selling almost twice as fast. It is crazy to be in this market right now, if you're a buyer and a seller, but let me give you our tips. So if you're a buyer, we highly recommend going through the full underwriting process upfront, being fully approved and that way you can write your offer as cash, even if you're getting a mortgage, because you know that all of your loan is approved. You can get your appraisal done on a rush. That's helping our offers get accepted over the competition. If you need a good lender recommendation who can help you do that, feel free to reach out to us.

If you're a seller, what does this mean for you? Well, home prices are up, they're up significantly. Your home might be worth a lot more money than you think. If you've been sitting on the sidelines, thinking about selling in 2021, now is the opportunity. We highly encourage you reach out to us, even if you're just curious about what your home could be worth today, if you're thinking about selling it, we'd love to get you an obligation free number to tell you this is what your home would sell for in today's market. In 2021, it might be a lot more than you think, and it might help you make the decision.

Now, if you can pocket a lot more money, you can afford that next house as far as an upgrade, you're putting down more money. Even though the price of that more expensive house might've gone up, your payment might actually go down because you're walking away with your sale or a lot more money. And if you're thinking about downsizing, it's even better 'cause your home is worth a lot more money now and you could buy that home probably for a lot, you know, all cash maybe. And it's a lot more affordable for you because your home is worth more money.

So there's pros and cons to both if your buyer and a seller. The market's moving very fast. If you have any questions about what this means for you specifically, feel free to reach out, give us a call, shoot us a text, send us an email. And as always, make sure you like us on Facebook and Instagram and follow us on YouTube @MandelTeamREMAX. Thanks for tuning.

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