Are there any explanation why the Real Estate in South Florida is ricing prices so fast?

Asked by Rose, Miami, FL Thu Mar 29, 2012

I have been looking for a property to buy since last November and I have notice how fast the real estate market is increasing the value of a property since then. I have lost five offers and three of the five properties are again on the market for $ 20,000 dollars more.

Help the community by answering this question:

+ web reference
Web reference:

Answers

21
Alistair Bar…, Agent, Fruitland Park, FL
Mon Apr 9, 2012
Hi Rose,

We just don't have enough inventory to satisfy demand unfortunately.

Not enough homes, huge demand - investors paradise!

If you are interested in buying somewhere and you me to help, please don't hesitate to contact me!

We have a lot of experience in "getting it done" on a buyers side and tying up offers as quickly as we can to make sure that you don't lost out!


Regards

Alistair Powell
Miami Executive Realty | 1024 Lenox Avenue | Miami Beach, FL 33139
Office: 305.501.4600 | Cell: 305.815.0880 | Fax: 305.501.4600
ap@miamiexec.com | http://www.miamiexec.com
Web Reference:  http://www.miamiexec.com
1 vote
Ann Ryan, Agent, Doral, FL
Fri Mar 30, 2012
The market is increasing, but I wouldn't say that it is rising quickly. Instead the problem is that there's inadequate supply of houses to meet the current demand. The cheapest properties are the hardest to find. If you would like, I can sign you up to receive information as quickly as it gets in the MLS.
1 vote
Justhefacts3, , West Palm Beach, FL
Sat May 12, 2012
because all the foreclosed properties are stalled. once they go back thru the courts ..this area will plummet like crazy again
0 votes
Carmen Brode…, Agent, Scottsdale, AZ
Sat Apr 7, 2012
Sounds like a classic case of supply and demand. Just not enough inventory of homes for sale. Similar situation is occurring in Scottsdale.
0 votes
Stephanie Le…, Agent, Miami Lakes, FL
Sat Apr 7, 2012
Hi Rose,

The problem is lack of supply of homes and homes are in high demand.

If you are not working with a Realtor I suggest you team up with one that can navigate you through this complicated market.

Good luck.
0 votes
Scott Mees, Agent, Palmetto Bay, FL
Fri Apr 6, 2012
Hello Rose,

You are right, the prices have been increasing, although as high as they may seem, we are nowhere near the prices of the "bubble days". This can be attributed to the lack of inventory in many areas and a high demand. We are also in a unique market in South Florida as we have a large influx of buyers from around the world that have come to invest or have a second home and that increases the competition for our product here locally. All the reports indicate that prices will continue to increase and are on an upward trend so it is best to buy sooner than later.

If you need any assistance please feel free to contact me at 786-443-0404 or csrealtor1@aol.com

Best Regards,

Scott Mees
0 votes
Best Miami B…, , Miami Beach, FL
Mon Apr 2, 2012
We have just blogged on this very subject!
0 votes
Miami Beach…, , Miami Beach, FL
Mon Apr 2, 2012
Hello There, Actually the inventory in Miami is decreasing and sellers are getting increasing offers, giving them a competitive advantage. The pending home sales is up nearly 30% in Miami, and whether this is seasonal or a result of market recovery, it is too early to tell. Contact us with more questions!
0 votes
Desperado, Home Buyer, Denver, CO
Mon Apr 2, 2012
I've been told the peak home selling period in Florida starts in Nov. and ends around Easter!
0 votes
Lila Lopez, Agent, South Miami, FL
Mon Apr 2, 2012
Good Morning Rose,

As has already been answered here, the prices have stablized and in some areas there has been a bit of an increase in pricing due to the lower supply in relationship to the volume of buyers. If you are not already working with a realtor, you will definitely want to find an agent that knows exactly what you are looking to purchase, from the areas to style to price ranges. In working with an agent you will know as soon as new listings become available on the market. Good luck with your home search and should you have any addtional questions please feel free to contact me.

Lila Lopez
RE/MAX Advance Realty
305-772-2521
0 votes
Irina Karan, Agent, Aventura, FL
Sat Mar 31, 2012
We were underpriced, everybody realized we hit the bottom, no hurricanes for 4 years in a row, less tourism to other warm climate countries that became un-safe to travel to (so many go to Florida and fall in love with it), many foreign buyers that want to invest in the US (and not in their home countries), many bubbles bursting in other foreign countries, less foreclosures than was expected, less short sales than was expected...I could go on...

Many buyers find themselves priced out of the market.
What to do in a changing market environment?
Make better, more attractive offers (not only price-wise)...
Speak with your agent on how to do that in this new market environment.

Best of luck in your search,

Irina Karan
Beachfront Realty, Inc.
305-904-2355
IrinaKaran@gmail.com
0 votes
Hans Klemm, Agent, MIAMI, FL
Fri Mar 30, 2012
The Real Estate market here lost dramatically value after the crash and everything is -still-
under- evaluated compared to a 'normal' market situation.
Since there is a lot of foreign capital coming to SFl and bulkbuyers are very actif, the correction is
quite rapid.
You need to be rapid as well, mainly for intersting properties...
And you need a competent Realtor to help you through the process.
Please call me 305 491 0492 or write me what you need precisely: HansKlemmRE@gmail.com
Best regards
HANS
0 votes
Yolande Citro, Agent, Miami, FL
Fri Mar 30, 2012
Yes, It is a worldwide destination. The whole world wants to be here.
0 votes
Genevieve Ra…, Agent, Punta Gorda, FL
Fri Mar 30, 2012
Rose,
As everyone below has stated, it is all about supply & demand. As demand goes up and supply goes down, there are more buyers and fewer homes to choose from. Often homes that are listed close to market price have multiple offers and are selling for more than listed price. When you find something you like, make your best offer and keep on top of it, so if there are multiple offers, you have the opportunity to increase your offer if you want to.

In some locations, the best time to buy has just gone past.

Good Luck!

Genevieve Ramachandran
0 votes
Nereida Figu…, Agent, Miami, FL
Fri Mar 30, 2012
Rose, High Demand and less Supply.
0 votes
Steven Epste…, Agent, Coral Gables, FL
Fri Mar 30, 2012
Simple demand & supply, High vs Low. Also, do the nos. 20%/yr from 2000 - 2005 the peak = +100%. The "trough" fell back to approx 2002/2003 prices, i.e 3-4 years back ... = -60% to -80% most areas avergaed 70% price drops. We've now been thru 6 years of drop, to bottom, to rise again ... so where is the trend? Interest rates are historically low
0 votes
Rosie Morot-…, Agent, Miami, FL
Fri Mar 30, 2012
Hello Rose,

The reason is low inventory -high demande...lot's of cash offers from out ot state/country and overseas buyers, good luck,

http://www.rosiemorot.com
0 votes
Annette Law…, Agent, Palm Harbor, FL
Fri Mar 30, 2012
Prices may have been artificially low as the banks plotted on where to hide the bail out money.
Now, everyone in the world, especially Brazilians buying in South Florida and the snowbirds of North America see NOW IS THE TIME TO BUY....and they have come with CASH.

If you are looking to compete with these buyers you need to be on your agents A-List. That means you will have the opportunity to buy before the home goes public. This however, will not be an opportunity to haggle and pile on contingencies, the price will already be below market value.

Best of success in buying your S. Florida home.
0 votes
Don Maclary, Agent, Virginia Beach, VA
Fri Mar 30, 2012
People are not listening, The prices are starting to climb in some areas in Virginia as well. It is basic economics Supply and Demand. Also has to do with rates.
0 votes
Carlos Ruiz…, Agent, Miami, FL
Fri Mar 30, 2012
The reason why - short supply, high demand and high number of cash buyers. About 46% of our sales are cash and many of the financed transactions are high loan to value. South Florida market differs from the rest of the country in that we have large number of International buyer and multiple markets that include immigration, in-migration, second homes and investors.

At this point any property that is well priced is going to receive multiple offers and the buyer is going to have compete. Most REO are selling anywhere from 10-30% above asking. For a buyer to have a chance on an REO they need to start at asking price and be prepared to go above when the seller asks for best and final offers.

Be prepared because we are getting to the point where some properties are being sold not subject to appraisal because prices in some properties are going up at more than 1% per month.
0 votes
Jim Sweat, Agent, Venice, FL
Thu Mar 29, 2012
Hi Rose,

Your question contains the answer: Market Demand.

Multiple bid situations are becoming the norm again, because inventory is down and there are more buyers than good deals right now.
That is not to say that all homes are selling quickly. Overpriced homes are sitting, but the ones priced to move are being bought.

We are seeing purchases by investors, and end users.

All the Best,

Jim Sweat, ABR, CRS, GRI, CDPE, e-PRO, ILHM
Realtor
Sandals Realty
http://www.ExplainShortSales.com
941-306-7384
Team@JimSweat.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more