The Realtors Association of the Palm Beaches and Greater Fort Lauderdale, released the South Florida Market Update report which shows closed sales, median sales prices and inventory year over year for Miami Dade County, Broward County, Palm Beach County, Martin County and St Lucie County.
Some interesting observations from this report (for single family homes) are:
1. Miami Dade County and Palm Beach County Median Days to Contract declined the most (lots of buyers)
2. Broward County and St Lucie County have the lowest months supply of inventory (less inventory)
3. Active Listings are down anywhere from 5% to 7% year over year (less inventory)
4. Prices are up year over year (lots of buyers)
5. Closed sales paid in cash declined the most in Broward and St Lucie County (declining REO Inventory)
The summary of all of this data is that this is a sellers market and it is very hard for buyers to find inventory. Prices are continuing to rise, and should continue to do so unless we have an exogenous event (like a sharp increase in interest rates). Looking at the median numbers does not show you the real picture of what is happening with REO’s since REO’s are priced the lowest in any zip code and lumping all of the sales (including the high priced ones) doesn’t show buyers the real picture. The reality is that at the low price points of the market prices have increased much more year over year than the median average and there is no inventory. I know because I look every day for houses to buy.
REO Inventory is drying up (especially in Broward and St Lucie County) but the rest of the Counties will follow suit as more and more bargain hunters and “flippers” enter the game of flipping real estate since the returns are so profitable. As prices rise, these returns will ultimately diminish but for now this is a great time to be buying houses to fix and flip since you have the wind at your back with rising prices, low interest rates, low inventory and many more buyers than sellers.
CLICK HERE TO SEE THE REPORT>> South Florida Market Update Jan 2018