Closed Sale | Miami
26Jan

C L O S E D sale

Coral Way Village

8361 SW 27th Street

Miami

3 Bed | 2 Bath | 1,306 SF

Sold for: $502,000

Above asking!

Buyer represented by Alexander Macdonald!

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RE Trends: What’s Driving Fla. Buyer Demand?
21Jan

RE Trends: What’s Driving Fla. Buyer Demand?

By Marla Martin

2022 Real Estate Trends: Millennials are prime homebuyers for years to come and interest rates will rise. This year’s wild cards? Inflation and unexpected virus variants.

ORLANDO, Fla. – What trends should consumers, Realtors® and policymakers watch for when it comes to Florida real estate over the next year? Drivers for homebuyer demand include demographic shifts, changes in consumer housing preferences – like location, home size and lot size – still-low mortgage rates and rapidly rising rental prices, Florida Realtors® Chief Economist Dr. Brad O’Connor told more than 300 Realtors during the 2022 Florida Real Estate Trends summit Thursday.

“The biggest wave of millennials is now in their mid-30s and they’ll be in prime homebuying years for some time to come,” O’Connor said. “And who are they buying from? The Gen Xers – and there are a lot more millennials than Gen Xers. And, here in Florida, retirees are a pretty big deal – combined with the millennials, that puts pressure on the market.”

The event was part of this year’s Florida Realtors’ Mid-Winter Business Meetings at the Renaissance SeaWorld Orlando. In addition to O’Connor, the summit featured Dr. Jessica Lautz, vice president of demographic and behavioral insights at the National Association of Realtors® (NAR). She shared her thoughts on buyer demand via a recorded Q&A. It also included a panel discussion on buyer motivation featuring Deanna Armel, broker-owner, Armel Real Estate; John Boyd, principal, The Boyd Company; Melanie Schmees, director of business and economic research, Greater Naples Chamber of Commerce; and Kelly Smallridge, president and CEO, Business Development Board of Palm Beach County.

Dr. Brad O’Connor, Florida Realtors chief economist

Analysts are waiting to see what will happen with inflation and how that will impact interest rates long term, O’Connor said, noting that some predictions call for the 30-year fixed rate mortgage to be as high as 4.5% by the end of the year. “That’s what we experienced a few years ago, and if that happens, it will certainly impact buyer demand and financing. We’ll see the market change and return to similar conditions,” he said.

Homebuilding and supply will also be a factor to watch when it comes to buyer demand.

“It’s a long-run problem; we have a long way to go when it comes to building,” O’Connor noted. “We need construction workers. Builders continue to face constraints but have been building at the fastest pace in recent memory. However, high prices and low rates of starter home construction will remain a challenge.”

Looking at 2021, Florida Realtors latest housing data shows that Florida’s housing market had more than 528,000 sales of existing homes (all types), up 19% year-over-year – a total dollar volume of about $241 billion – despite the ongoing COVID-19 pandemic.

“In terms of sales, 2021 could also be called ‘The Year of the Condo’,” O’Connor said. “Over 160,000 existing homes in the condo and townhouse category sold in 2021, marking a more than 34% increase over 2020’s total. In contrast, the over 350,000 sales in the single-family home category, while over twice the size in number, represented only about a 13% increase year-over-year.”

The lack of inventory impacted the housing market statewide over the year.

“We got our hopes up for inventory, but except for a few months, that didn’t happen,” he said. “We started the year with a 1.6-month’s supply of existing single-family homes, but we ended 2021 with a 1-month’s supply – and in many of your local markets, it’s down to a half-a-month’s supply. For years, Florida has had more existing condos than single-family homes, but by the end of the year, existing condos and townhomes are down to a 1.3-month’s supply, which is very close to the single-family category.”

Dr. Jessica Lautz, NAR vice president of demographic and behavioral insights

The median age of a first-time homebuyer is 33 years, the same age it has been for several years, Lautz said, noting NAR research found that first-time buyers usually are in a tight age range of 28-33 years.

“However, the age of typical repeat buyer has increased significantly,” she said. “Repeat buyers’ median age is 56 years, and some may be looking to downsize, which can be added competition for the first-time buyers.”

At the beginning of the pandemic, there was a quick uptick in multigenerational buyers as older parents came to live with their adult children and their families, who also may have had college age or older children come back home, according to Lautz. It has since leveled off to about 11%.

When asked about research on buyers and sellers working with real estate brokers and agents, Lautz noted that “agent use is trusted.”

“People are embracing technology and using technology with real estate professionals,” she said. “Agent use is extremely high now; 87% of buyers today are working with real estate agents, and the youngest buyers out there are using agents at the highest rates. For sellers, 90% are using an agent, and they’re working with someone who will be a one-stop shop for them with a broad range of expertise who will handle it all.”

She added that FSBOs (For Sale By Owner) are at historic lows at just 7% today.

Finally, more people see the real estate industry as “a refuge” right now. It’s attracting people seeking flexibility and independence – especially more women, according to Lautz.

“We see this wave of more Realtors entering NAR membership (1.5 million) than ever before,” she explained. “And we’re seeing more women agents and brokers. It’s a pretty stark change from 1978 to today.”

© 2022 Florida Realtors®

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Supply and Demand: What does that tell us about today’s market?
3Jan

The law of supply and demand explains what’s happening with prices in the current real estate market. Put simply, when demand for an item is high, prices rise. When the supply of the item increases, prices fall. Of course, when demand is very high and supply is very low, prices can rise significantly.

Why Are Prices Rising?

According to CoreLogic, home prices have risen 18% since this time last year. But what’s driving the increase? When we take NAR’s buyer activity data and compare it to the seller traffic during the same timeframe, we can see buyer demand continues to outpace seller activity by a wide margin. In other words, the demand for homes is significantly greater than the current supply that’s available to buy.

Where Are Prices Headed?

Many experts forecast prices will continue to increase, but they’ll likely appreciate at a slower rate. Buyers hoping to purchase the home of their dreams may see this as welcome news. In this case, perspective is important: a slight moderation of home prices does not mean prices will depreciate or fall. Price increases may occur at a slower pace, but experts still expect them to rise.

What Does This Mean for Homebuyers?

If you’re waiting to enter the market because you’re expecting prices to drop, you may end up paying more in the long run. Even if price increases occur at a slower rate next year, prices are still projected to rise. That means the home of your dreams will likely cost even more in 2022.

While prices may increase at a slower pace in the coming months, experts still expect them to rise. If you’re a potential homebuyer, message me today to discuss what that could mean for you if you wait even longer to buy.

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Buyers Who Waited for Lower Prices? Many Regret It
22Dec

By Amber Randall

Some buyers postponed searches, assuming prices would drop as they did in the last recession. But now homes they once considered are financially out of reach.

FORT LAUDERDALE, Fla. – As South Florida home prices spiked during the pandemic, some people decided to put their home shopping on pause in the hopes that prices might drop, a decision they are coming to regret.

Now, a year-and-a-half into record price growth and dwindling inventory, non-buyers are stuck in a precarious situation: they want to buy, but are facing higher prices than they did when they first started searching, and they’re finding themselves at risk of being priced out of the South Florida real estate market.

“They feel like they made a mistake at some point and they feel like they can’t catch up because the market is so far ahead of them that they can’t get back in,” said Alicia Cervera of Cervera Real Estate in Miami.

Allie Sinbine and her husband, Steve, were among those who decided to try and wait out the real estate market after they started looking at homes in June of 2020. They put their search on pause a month after shopping, thinking it was likely that homes prices would start to lower towards the end of the year.

“We assumed that with the New Year and the election ending, we would start to see things level out and they would come back down to where they were,” she said.

Instead, home prices just kept rising, further pushing the couple out of the housing market. They are looking for a three-bedroom, two-bathroom home in the $250,000-$300,000 range, but as prices have continued to climb, they’ve expand their search beyond Palm Beach County, farther north to Port St. Lucie. They’re exploring new construction homes and considering that they may have to up their budget at little bit.

“We never anticipated that it would be almost 2022, and there is still nothing for us to move into that is affordable,” Sinbine said.

Homes prices jumped, no slowdown in sight

Homes prices skyrocketed in South Florida during the pandemic, as intense demand from out of state buyers dovetailed with historically low inventory to create an intense seller’s market where buyers were often faced with paying over asking price and losing out in bidding wars.

In a market where it’s common for buyers to lose out and face multiple bidding wars, it can cause home shoppers to get discouraged and more hesitant to buy, explained Brian Pearl, principal agent with the Pearl Antonacci Group in Boca Raton. “I’ve had buyers regret waiting more recently, given that the market hasn’t slowed down like they thought it would by now,” he added.

He’s not the only Realtor to have clients face this issue. Jeff Creegan with Re/MAX Services in Boca Raton said about 30-40% of his clients in the last year end up trying to wait out the housing market. Many were wary of buying in the spring or even last summer as they watched prices skyrocket, only to see them rise even more as the year comes to a close. The overall sentiment, he said, is that they made a mistake in trying to wait out the market.

Now, as they begin to look again, buyers say they are greeted with homes that are $100,000 more expensive.

As a result, Creegan said, “They are looking in different markets, like in Southwest Florida or more affordable markets.”

He himself was looking at a three-bedroom, two-bathroom house in January, listed at around $410,000. He decided to wait, but when he went back to the house in April, it was priced at $480,000. He was able to get it for $450,000.

In February of 2021, the median sale price of a home in Miami Dade County was $450,000, a 21% increase from the year before, according to numbers from the Broward, Palm Beach and St. Lucie Relators. For Broward County, the median sale price of a home was $433,000, a 12% increase from the year before. For Palm Beach County, the median sale price of a home was $450,000, a 24% increase from the year prior.

Flash forward to October of 2021, when median sale prices rose 19% from the year before in Palm Beach County to $500,000 in October. For Broward County, the median sale price of a home was $489,000 in October, a 17.8% annual increase. In Miami Dade County, the numbers shot up 12.6% to $490,000 for October.

“I’ve had buyers come in and ask me ‘with these high prices, do you think we should sit back and wait?’ I always tell them that no one can predict what is coming or if the prices are going to come down,” Christina Tokar, real estate agent with Re/MAX Advantage Realty in Davie.

Jeannie Schwartz is another shopper who decided to put her search on pause in hopes that the market would stabilize.

“I’m kicking myself,” she said. She started looking in January for a home within her budget of $300,000-350,000, but discovered that the properties were below the quality she was hoping for. Almost a year later, the same neighborhoods where she was once looking had prices jump up almost $100,000.

“I got priced out of buying,” she added. “I really should have bought something because now properties are worth so much more. I feel like I am going to have to leave Florida.”

She added that that she also feared purchasing a home when the market was at its peak, in case there was a crash later.

The housing crash of 2007 is likely still fresh in a lot of potential buyers’ mind, noted Eli Beracha, director of the Hollo School of Real Estate at Florida International University, and is potentially one of the reasons that they are trying to wait out the housing market.

Beracha also noted, however, that the forces fueling this housing market are different. “We had an excess of supply last time [in 2007]; we don’t have that this time. If you don’t have excess supply, it’s hard for the market to correct in a significant way.” In other words, he does not see a dramatic bust in our future.

Out-of-state home shopper Dr. Ketang Modi, his wife and two daughters are making the move from New Jersey to Broward County, and are looking for a home that is around 4,500 square feet with a minimum of four bedrooms.

When they searched previously, they looked at homes in a community in Davie that were priced around $1.2 million, and now, four months later, prices are hitting $1.6 million, prompting him and his family to consider renting to wait out the market.

“Everything is overpriced,” he lamented. “I’m not sure when there will be a correction or when prices will stabilize.”

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Closed Sale | Oak Forest Miami
21Dec

C L O S E D sale

Oak Forest

19940 NE 23rd Avenue

Miami

5 Bed | 2.5 Bath | 4,106 SF

Closed for: $1,130,000

Buyer represented by Lisa Yanowitz

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Official Feature in Top Agent Magazine | Now Live!
14Dec

Incredibly honored and excited to announce that my feature in the international and nationwide edition of Top Agent Magazine is now live! Link in bio to read on!

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Under Contract | Peninsula Aventura
13Dec

under C O N T R A C T

The Peninsula

3301 NE 183rd Street #1906

Aventura

4 Bed | 4.5 Bath | 3,524 SF

Last asking: $1,599,900

.

Buyer represented by Lisa Yanowitz

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Closed Sale | 1800 Club Condo
6Dec

C L O S E D sale
1800 Club Condo
1800 N Bayshore Drive #1005
Miami
3 Bed | 3.5 Bath | 3,082 SF
Sold for: $870,000
Seller represented by Heidi Baumann

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What is APR and how Does It Impact My Mortgage?
1Dec

If you've ever gone shopping for a home mortgage or refinance you've probably seen an interest rate advertised as, for instance, "Rate: 2.65%; APR: 2.7%." The annual percentage rate (APR) represents the average annual finance charge you'll be paying on the loan when including all the fees and costs associated with getting that loan. This can include things like closing costs, broker fees and discount points (a lower interest rate charged in exchange for an additional upfront fee). The APR is usually higher than the interest rate. The APR is a valuable number to know so you can compare directly the total costs of loans that might have widely varying terms. Here is an example of how this works.

Let's say you want to borrow $200,000 to finance your home purchase. The closing costs, broker fees, etc. come to another $5,000. So, you are actually borrowing $205,000. The original interest rate was 5 percent, meaning an annual interest payment of $10,000. But including the additional $5,000 will yield an annual interest payment of $10,250 (5 percent of $205,000). Dividing the $10,250 by $200,000 will show an APR of 5.125%. If you're comparing two mortgage loans, generally the one with the lower APR is the better deal as it means that the lender has lower upfront fees than the other lender.

You also encounter APR on credit cards. This is the cost associated with the credit card company financing your financial activities. Lenders may charge one APR for purchases, another for cash advances and a third for balance transfers. How you plan to use your credit card will determine which APR you should pay the most attention to. If you pay off your balance each month, you won't incur any APR charges for purchases, though you still may for balance transfers and cash advances. Sometimes credit cards will offer introductory specials with 0 percent APR, so you'll want to investigate those as well.

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Under Contract | Coconut Grove | Cloisters on the Bay
29Nov

under C O N T R A C T

Cloisters on the Bay

3471 Main Hwy #1239

Coconut Grove

4 Bed | 4.5 Bath | 5,660 SF

Last asking: $2,849,000

Seller represented by Mitch Sklawer

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