- AR mortgage team
The Dangers of Trying to Time The Florida Housing Market
The real estate market in Florida is red hot, and with economies reopening, more and more individuals are considering relocating to the state. But because of this hot market, it is important for buyers and sellers to take a moment and evaluate their decisions when buying or selling.
In order to make the right decision, it is critical to understand the housing market's current conditions and potential forecast. However, trying to tie a buying or selling decision to the market can be tricky.
In this article, we will take a look at the current market trends as of Q3-Q4 2021, and how you can take the right steps forward in this unique market condition.
Current Florida Market Trends
Across the Florida real estate market, sales and prices continue to surge. Here are the latest statistics gathered by the South Florida Business Journal:
Single-family home sales in the South Florida region increased 24.4% to 4,800 in July 2021, compared to July 2020. The median sales price increased 17.8% to $424,250 over the last year. Across Florida as a whole, prices are up 26.9%. The median price for Florida as a state is up by 15.6% to $305,000.
Sales in condo buildings rose by 24.6% to 4,411 with a median sales price of $225,000. Statewide condo and townhouse sales have risen by 30% year-over-year.
The rise in sales continues to showcase the strong and resurgent housing market in Florida. While prices are on the rise, they remain affordable compared to other parts of the country. However, some analysts indicate that home values could begin slowing over the next year as demand begins to taper off and the market continues to correct.
Why You Should Avoid Timing the Market
Knowing current market conditions can be beneficial when choosing to buy or sell a home, but many individuals try to time their transactions to maximize profits. There is no guarantee that you will be able to sell your home at the best asking price, and even if you do it is not guaranteed that you will purchase another home before prices rise further.
Most experts will advise against trying to time the market when you're in the process of buying or selling a home. Here are a few reasons:
1. Markets Are Fickle
The marketplace is always changing so it's impossible to predict what the market will do in a few months or a year. One factor in determining a property's value is supply and demand, both of which can change quickly.
2. Sellers Might Not Want to Wait
If you're trying to sell your home, there is no guarantee that another home will be available for purchase before it sells. With homes only on the market for a short time, you may find yourself waiting longer than expected and having to take a lower offer than what you could have received months earlier if you had waited.
3. Incorrect Pricing
Even if you're trying to buy your next home, sellers sometimes price their homes too high because of their emotional attachment.
When you make an offer on a home, the seller will consider how attached they are to the property and whether they're willing to wait for it to sell or leave it on the market for months. Offers often meet the asking price but if there are multiple offers, buyers can negotiate downward knowing that sellers may be motivated to sell quickly.
4. Improper Timing
Even if you're in the market to sell your current home and purchase a new one, it may not be in your best interest to time your transactions together.
Selling when you need to move is often better than trying to time when the market will be at its highest; for example, many people make improvements when they plan on selling their home, but they don't want to make those improvements right as the market is peaking.
5. Expensive Real Estate Commissions and Other Costs
Real estate commissions are very high and may be more than you can afford. Selling a home yourself not only saves you tens of thousands of dollars in real estate commission, it also allows you to increase the selling price of your home by thousands of dollars.
In an already competitive market, timing the market incorrectly can be a costly mistake. That is why it's best to partner with an experienced and local real estate professional who can help you navigate through what can be a tricky process.
With proper guidance, the market will not affect your transaction in a negative way that could cost you dearly.
Partner with AR Mortgage Today
Whether you are looking to buy or sell in this red-hot Florida market, AR Mortgage is ready to help. We have years of experience assisting individuals through the mortgage process so they can get into their dream home or sell their current one for top dollar without any hassle.
Want to learn more about how to take advantage of today's market conditions and determine if now is the best time for you to get into your dream home or put your current house on the market? Contact AR Mortgage today and we can help guide you through the process.