Why are homes so expensive in South Florida?
If you are trying to purchase a home anywhere in South Florida (Palm Beach, Broward or Miami-Dade counties), we are sure that you are finding it extraordinarily difficult. Asking prices have reach stratospheric levels and new listings are receiving multiple offers in the first few days.
We are constantly being asked, why is this the case?
Simply put, it comes down to supply and demand. During the pandemic a larger than usual number of out-of-state buyers became interested in purchasing homes within South Florida, thereby inflating the demand level. More significantly, the amount of inventory declined as home sellers removed their properties from the marketplace.
The following chart shows the trend in active inventory levels for all property types across the South Florida market. As of January 2020, inventory levels exceeded 47,000 individual housing units while as of May 2021, inventory levels have declined to below 25,000 units.
Individual South Florida Counties
Following are the inventory trends for each of the three counties in the South Florida metropolitan area. All three show a significantly declining trend.
Palm Beach County
At this time most industry experts are not expecting a significant change in the amount of inventory. As a result, it is anticipated that homes price levels will continue to remain high for the foreseeable future.
About Quantum Realty Advisors, Inc.
Our firm differs from “traditional” real estate companies as we specialize in working not only with individuals and families but with professional advisors including attorneys, accountants, investment managers, trust officers and financial institutions to assist their clients with all their real estate needs.
The top three reasons to work with Chris and Amy are:
- HONESTY, INTEGRITY AND TRUST. In the last 10 years, more than 80% of our business comes from referrals or repeat clients showing that we develop trustworthy relationships with our clients.
- EXPERIENCE. Having successfully closed more than 2,000 real estate transactions, we know what it takes to get the job done properly, and in a timely manner.
- WE GET MAXIMUM VALUE FOR OUR CLIENTS. Confidence in achieving the best price for your property is one of the most important criteria when choosing a real estate professional to represent your interests. While it’s not difficult to get maximum value during a strong market, doing it consistently is the difference. To prove that we can do so, we performed a study of our listed propertied that sold from 2012 to 2019 where an independent appraisal was conducted in advance. As a result, we achieved an average of 104.5% of appraisal value on these 350+ sales transactions.
Contact us at 561.584.8555 or via email at firstname.lastname@example.org.
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