South Florida Housing Market Update [March 2021]
Hey, it's Andy with the Mandel team at RE/MAX and I'm here to bring you your March 2021 Housing Market Update. As always, for the purposes of these videos, we're giving you the leading indicators to show you where the real estate market is headed.
We're gonna talk about Boca, Parkland, and Coral Springs. Those are the areas where our team does the predominant amount of our business. And we're talking about single-family houses only. No condos, no townhouses, no country clubs, and no 55-and-over communities. So, let's get into it!
The first stat we like to look at is the number of new homes hitting the market. That is down on average 25% compared to this time last year. So, we're seeing fewer homes hit the market. At the same time, the number of new listings going off the market, going pending, that is up 23%. So, 25% fewer homes hitting the market, 23% more homes coming off the market and selling this time of year compared to last year. So, as you can imagine, that just means that there's a lot of buyers out there. Homes are getting snapped up really, really quickly.
So, the days on market is the next stat we're gonna talk about. The average days on market in our area is 19. Now, realistically, there's no way that's accurate. What we are actually seeing in this market is that the homes that are priced well and in good neighborhoods in halfway decent condition, literally 24 to 48 hours, and they're getting four, five, six offers. We had an open house today; we had over 50 different groups of people through the open house. That is how much demand is out there.
The next stat we like to look at is the number of months supply of inventory. So, what this means is, if no more homes were to come on the market, at the current pace of sales, how long would it take for all of the homes that are on the market to sell? That is sitting at 1.01 months. So, anything less than six months is generally considered a seller's market. Anything more than six months is a buyer's market. At one month, this is about the strongest seller's market anyone has ever seen. In Coral Springs specifically, we're at 0.57 months worth of inventory. So, in Coral Springs, if no one else were to list their house, at the current pace of sales, in less than three weeks, two and a half weeks, there would be no homes on the market. It's mind blowing, but there is just nothing for sale. Because of all this demand and such little supply, as you can imagine, prices have been going up, and sellers are getting much, much closer to their asking price because there's a bidding war and multiple offers on almost every property. The average sales price to list price is 98.5%. So, sellers are getting almost their entire asking price. In Coral Springs, specifically, it's 100%. Now, keep in mind: these are averages. That means that 50% of the homes are getting more than list price in Coral Springs. Again, they're just mind-blowing stats. But that's what's going on right now in the real estate market.
So, what does this mean for you? If you're a buyer, you absolutely have to be pre-approved and fully underwritten upfront prior to looking for houses; it's just not optional anymore. Sellers aren't even considering buyers who aren't fully pre-approved, just because, if you have five or six other offers, why would they? So, you gotta be pre-approved, you gotta be one of the first people in the house when it hits the market, and you gotta be ready to write the offer right away; there's not any time to think about it. Keep in mind, you do have your inspection period, so, if you're worried about making a rash decision, get that home under contract; then you have a chance to rethink it. You can back out during your inspection period if it's just not the right house for you. But you're not having a lot of time to think about houses.
If you're a seller, what does this mean? It is a great time to be a seller. As you can imagine, with all of this competition and nothing for sale, sellers are getting these ridiculous prices. Prices have been going up. You can almost name your price. As long as it's somewhat in the realm of reality, I'm seeing sellers get that price or they're getting very, very close to it with multiple offers, so they're making sure that the offer they do accept is gonna have the absolute best terms. So, it's a really difficult market out there. We need more houses to sell. If you're watching this and you've been thinking, "How do I navigate this market? How do I sell "while also needing to buy?", give us a call. We have a bunch of different strategies that can put you in the driver's seat to make sure that you can sell and buy and navigate this tricky market.
We're here to help you out. If you're looking to buy or sell a home in South Florida, we'd love to be your realtor of choice.