I assume the majority of you reading this blog are interesting in buying a property in Florida, rather than selling. That's what this blog is all about, after all!
Nevertheless, data on selling properties can still be useful to buyers. The Sun Sentinel last week had an article on a report created by Altos Research, who undertake research on the real estate market.
The report showed the average time it takes to sell a house across America. In southeast Florida - specifically, the counties of Dade, Broward and Palm Beach - this amounts to 156 days. This figure is the highest for the whole of country, as the national average is 111 days. (N.B. This data only refers to houses, not condos, so it shouldn't be considered an indication of all properties on the market.)
156 days works out to just over 5 months. This does seem like a long time, which would surely test the patience of many - almost all - sellers. It is, however, another thing that gives buyers and advantage. The longer the property is on the market for, the keener the seller is to sell - generally. The property may well have already undergone several price reductions, and an interested and firm buyer may well be able to negotiate a further price reduction.
More to the point, one big reason for houses having such a lengthy selling process is that there's much more supply than demand. So buyers get a considerable amount of choice.
Of course, as the article points out, 156 days is just an average. Some homeowners would be happy if it "only" took them 5 months to sell their property. Others in southeast Florida find it takes them a lot less. (The cities of Hollywood and Plantation are mentioned as examples of the latter.)
All in all, it still remains a buyer's market.
Article: Houses take average of 156 days to sell in South Florida, report says (8th August, Sun Sentinel)
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1 comment:
Don't characterize the current housing crisis as a ''drop in prices.'' What happened between 2003 and mid-2007 was an artificial market fueled by a buying frenzy, disregard for affordability and mortgage fraud. It was easy to jump in, and even smart people made mistakes. Those prices must be disregarded.
Wipe the slate clean and start with sales in 2003. If we do that, it is apparent that the South Florida real-estate market is healthy, offering 5-percent to 8-percent annual returns as long-term investments. This is better than CDs, bonds and some mutual funds.
ANA, Miami
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