So, what is going on with the Weston real estate market?Is NOW the right time to sell your home? The answer is still Yes. The mortgage rates have increased, yet are still quite reasonable if you look at them historically. Many buyers are now finally "off the fence" and are frantically looking to find their new home, as we still struggle with super low inventory. The new shift is that homes are more likely to sit on the market longer, 30-60 days which is more indicative of a “normal” market, giving an opportunity for a buyer and seller to enter into more normal negotiations. Our market in South Florida is extremely price sensitive, so now, more than ever, sellers need to be well educated about pricing. They don't want to find themselves chasing the snowball down the hill or missing a good opportunity because they misread the market or buyer choices.
Our community of Weston, and most of South Florida is quite insulated from the national statistics. Our small-town feel, safe community, proximity to cities, airports, and top-notch public and private schools, parks, and recreation make it a buyer's dream, a perfect choice to snap up real estate. It has the staying power, which it has proven year after year. We are still seeing a surge from the Northeast, NYC, NJ, and Boston, in particular, and its not just snowbirds. Many choose Florida as their homestead due to rising property taxes, raising the sales tax, and state income taxes occurring in their state . The benefits of federal and state tax laws just for establishing their residence here in South Florida as well as warm winters and a fabulous lifestyle contributes to the attraction of South Florida. While demand in the market as we moved into the 21st century was dominated by retirees, south Florida now enjoys a great diversity including across multiple generations.
Year to date, we have seen a great shift. Homes which were flying off the market in a matter of hours or days are now falling back into a more regular pattern. We are again experiencing price reductions and longer days on the market. Homes with upgrades including new roofs, recent renovations, and water or golf views are dominating the sales. Remember, just 2 years ago, it typically took a house 3-6 months to sell. Good news for buyers: they can expect less fierce competition to find a home.
We are still experiencing a grand exodus from the Northeast as well as California and now more recently Colombia with the political unrest. With the end of covid in sight, we are seeing record-breaking traveling from countries that have been nonexistent in South Florida for much of covid.
Let's digest: What is currently affecting our current real estate market Inflation - The US is still having issues with supplies for new construction, and home renovations- we are seeing signs of this softening, Good News.
- Affordability is increasingly a challenge for buyers - this does not necessarily mean that home prices are going to fall
- Cryptocurrency - is not inflation-proof. Real Estate is still the best hedge against inflation
- Lending standards are nothing like the financial crisis of 2008-2009
- The Stock Market is facing an inflation test- volatile across the board, factoring in high gas prices, globalchip shortages, the federal reserve raising by 75 basis points and is looking to do that again soon.
- Mortgage Rates higher, hovering around 6% but not high by historical standards are average
- South Florida is insulated - Rental increases, up 14% nationally and over 40% in South Florida according to NAR
- Home price appreciation has been rapid in the last 2 years- Good news, even if home prices fall, many homeowners are equity rich
- The median sales price for an existing home is up 17% up from last year
- Indices reflect how prices have reacted to the rapid increase in mortgage rates in the second quarter of 2022
- Prepare for slower home price growth - We have fewer showings, more price reductions, more stable market
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South Florida is a very resilient market