South Florida Housing Market Update [October 2020]
South Florida Housing Market Update [October 2020]
In this video, Andy Mandel with REMAX Advisors goes over the most recent statistics for the South Florida Housing Market for October 2020. Are prices going up or down? Watch the video to find out so you can make an informed decision for your family!
Hey, it's Andy with the Mandel team at Remax and I'm here to bring you your October, 2020 housing market update. As always for the purposes of this video, we're gonna be talking 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, and we're not gonna be discussing 55 and over communities or country clubs. Those are all different markets entirely. We're talking about single family houses in all age communities.
For the purposes of this video, we wanna give you the leading indicators to show you where that real estate market is going, not where it's been. The first step we're gonna look at is the number of new homes coming onto the market. That is actually up 13% compared to this time last year. We are finally starting to see, this is two months in a row now, more homes hitting the market than we had last year, which is a good thing because there's been very few homes to choose from over the course of basically this whole year. Where we get dicey is the number of homes that are coming off the market. So pending sales is up 69%. So yes, we have more homes on the market, but we also have a lot more homes selling compared to last year, so they are selling very, very fast. That brings me to my next stat is the days on market.
The median days on market in these three cities is about two weeks but realistically I'm seeing the really good homes, they're all selling in a matter of two or three days at the absolute max. It's a very, very fast moving market if you are looking to buy, you gotta be one of the first people in there and make a decision right away, because there are so many people who are looking to move here to South Florida. The competition is fierce.
The last stat that we look at is the month's supply of inventory. What this stat shows is, if there were no more homes to hit the market, how long would it take for all of the homes in the market to sell? Anything less than six months is considered a sellers market. Anything more than six months is considered a buyer's market. Right now we're at about 2.19 months of inventory across the board. We are very, very, very much in a sellers market. There's almost nothing to choose from. There's very little inventory. It is definitely a sellers market.
What does this mean for you? If you're a seller, it's an excellent time to put your home on the market. Your home probably has a lot more equity. You can probably sell for a lot more than you think, because there's so many buyers who are out there looking, and prices are continuing to go up. When we have fewer homes hitting the market, but a lot of competition, real estate is priced with supply and demand. Very little supply, very high demand. It's putting an upward pressure on pricing. If you're a seller now could be a great time to sell, if you've been thinking about it, you can probably get a much higher price than what you would have this time last year. If you're a buyer, what does this mean for you? Well, it means you gotta be ready to buy. You gotta be serious and you have to be fully pre-approved upfront because like I was saying, the good homes are selling very, very quickly. You gotta be one of the first people in the houses. You gotta write the offer right there on the spot, you can't really think about it for a day or two. If it's priced right and it's in good condition, these homes are selling.
We have a lot of people coming down to South Florida from all over the country to take advantage of really, really low interest rates. Interest rates are below 3%, so homes are really affordable. What I will tell you if you're a buyer is this, even though prices have gone up and there's not a lot to choose from, because interest rates are below 3%, I'm seeing 2.5, 2.75% interest rates. Historically speaking, that is crazy. You went back to the eighties, interest rates were at 15, 18%. So money is very, very, very cheap. Even though prices have gone up on average, buyers can afford about $30,000 more on their mortgage for the same price compared to where interest rates were about a year ago. So yes, prices are higher, but it's not always about the price, it's really about what you can afford in your comfortable mortgage payments. So don't get discouraged, just get fully pre-approved so you're ready to go, give us a call and we can help you get a search setup to fine tune your criteria and make sure we're looking for exactly what you're looking for and get you to be one of the first people in the door.
I hope this was helpful for you. It's a great time to be a seller. If you wanna be a buyer, you just gotta be ready, but homes are selling, we're getting our buyers accepted, even in these multiple offer situations. So give us a call, shoot us a text, send us an email. We'd love to help you either buy or sell. If you're making a move in South Florida, we got your back.