How’s the market?

How's the Market?

Right now, it all depends on your price range and your product (house vs. condo, etc.)

First principle: Supply and demand is like a seesaw.

“Sellers Win” Market

"Sellesr Win" Market

Low inventory creates upward pressure on values. The SELLER has the advantage.

“Neutral” or Balanced Market

"Neutral" or Balanced Market

If inventory and demand are balanced, values are normally stable. Neither buyers nor sellers have an advantage.

“Buyers Win” Market

"Buyers Win" Market

High inventory creates downward pressure on values. The BUYER has the advantage.

Months of Inventory

Single Family Homes Months of Inventory
Condos/Townhomes/Co-ops Months of Inventory

A Tale of Two Markets

For houses, in the starter and move up price ranges, there are significantly more buyers wanting to buy than there are homes for sale. This has resulted in a seller’s market. For premium or luxury houses, the opposite is true. There are many more properties for sale than buyers interested in buying. So luxury homes are in a buyer’s market.

Only lower priced condos are still in a seller’s market. The majority are dealing with buyer’s market conditions. The condo market has more variables to consider. Oceanfront locations, 55+ complexes, assessments, reserves and the health of the association, etc. These factors sometimes create unique markets by themselves distinct from what other condo sellers are experiencing in the same price range.

While much of the country is experiencing a similar problem with two distinct markets at the same time, it does seem to be more pronounced in our area. Our local market has been stuck in this “two market” situation since the summer of 2016. The two graphs below should make the overall principle, especially related to pricing, much easier to understand.

For more exact guidance, please contact Barry Dunn directly at 954-298-1650.

Seller's Market

Seller's Market
This is the type of market most Sellers in south Florida are accustomed to. Most of the homes for sale are priced IN the market. Prices for similar properties are in a smaller range. Only those that are severely overpriced are priced OUT of the market.

Buyer's Market

Buyer's Market
In this type of market, most of the properties for sale are actually priced OUT of the market, and have no real chance of selling. In order to be priced IN the market, sellers in a buyer's market must price much more competitively and aggressively than their neighbors. Only the very best deals will sell.

Single Family Houses

The yellow columns indicate the average days on market to sell.  The green line shows how much of their asking price sellers got on average, for the properties that sold.

Condos, Co-ops, Villas and Townhomes

The yellow columns indicate the average days on market to sell.  The green line shows how much of their asking price sellers got on average, for the properties that sold.

Last 15 years, all property types, all price ranges

Average Sale price (in red) for the last 15 years

Houses Average Sales Price in Red

It should be noted that the large difference between the average asking price and the average sale price is due to the extremely large number of unsold properties in the higher price ranges.

Condo Average Sale Price in Red

It should be noted that the large difference between the average asking price and the average sale price is due to the extremely large number of unsold properties in the higher price ranges.

SINGLE-FAMILY HOUSES

Houses 0 to $299,999

Houses $300,000 to $499,999

Houses $500,000 to $699,999

Houses $700,000 to $999,999

Houses $1 million to $2 million

CONDOS

Condos 0 to $249,000

Condos $250,000 to $349,000

Condos $350,000 to $499,000

Condos $500,000 to $749,000

Condos $750,000 to $999,000

Condos $1 million to $2 million

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