October 2023 South Florida Housing Report

What’s happening in the market?

Mortgage rates officially went over 8% in the month of October according to Mortgage News Daily. Home sales in South Florida are down slightly, just 2% when compared to this time last year. In October 2023, we again saw increases in new listings and active inventory. Average sales price for both single-family and condos/townhomes remain well above 2022.

What does this mean for Buyers?

• Not only is affordability a concern for buyers given current mortgage rates, inflation, etc., but so is availability as inventory has struggled to keep up with buyer demand, especially in a high-demand area like South Florida. Therefore, an increase in listings and active inventory is great news! More options could lead to less competition and a stabilization or even reduction of prices.
• It is important to note that many buyers in South Florida are cash buyers (e.g., investors, international buyers, 2^nd homeowners, etc.), so the region is slightly less susceptible to ever-changing mortgage rates
• If you are a serious buyer, make sure you are staying prepared and informed! Mortgage options such as buydowns or assumptions could be great options for buyers in this market.
• In challenging markets like this one, working with an experienced buyer’s agent will prove helpful to make sure you are getting the most out of the home buying experience!

What does this mean for Sellers?

• The increase in the number of new listings in South Florida could indicate that want-to-be sellers who have been on the sidelines due to mortgage rate and inventory concerns are getting back in the game. Despite their concerns about the market, sellers may have needed to list due to changing life circumstances such as relocating for work, retirement, divorce, growing families, downsizing, etc. – sometimes change is inevitable! In this current economic environment with inflation, ongoing international conflicts, etc., it is difficult to predict what the future may hold, so the best time to get your real estate goals accomplished is when the timing is right for YOU!
• The increase in new condo/townhome listings is notably higher than single families, and we expect this trend to continue given that stricter regulations and increased insurance premiums are creating challenges for existing owners. Also because of these factors, condos/townhomes are being listed faster than they are going under agreement which is one of the reasons for increased inventory levels.
• If you are planning on listing your home, know that pricing is crucial in this market to ensure that you are creating the most demand for your home which ultimately gives you more negotiating power.
• Since many sellers are also buyers, pricing competitively will allow you to set favorable terms which is critical for those in sell/buy situations.

What’s next?

The South Florida real estate market is moving more quickly towards a buyer’s market when compared to Northeast markets. We expect to see a continued stabilization in the market and increased activity as the year comes to a close, especially with the busy season kicking off soon and snowbirds migrating to the Sunshine State for the winter. Remember that homes DO sell during the holidays. Buyers who continue looking during the holiday season are far more serious and motivated than at other times of the year when there is an increase in casual lookers. For sellers, this means you are more likely to receive quality offers on your home, and for buyers, it means less competition! Don’t miss the opportunity that lies ahead in these next couple of months, especially if you are looking to buy or sell before the end of the year!