Despite the inventory challenges, home sales were at historic highs in the 2nd Quarter! 

Hi everybody,  It’s Joe Hillner with Your Home Sold Guaranteed Realty, where we guarantee that  your home will sell for 101% of asking price, or I’LL pay you the difference! 
Ok, so every week, I share market data to keep you informed with the local real estate market.  
Here is this week’s Boca Market Watch.

First, Single Family Homes:

This past week, another  down week with only 43 new homes on the market, ranging from 390,000 to $7.5 Million.   12 homes back on the market, while 30 homes listed took a price decrease, and 8 sellers raised their asking price.  And  another so so week with just 43 different properties under contract, and another 32 going pending.   And just 18 homes were unsuccessful in selling and were taken off the market or the listing expired outright, still very low!  And a poor week with just 53 homes sold in the past week,  ranging from $250K to $12.5 Million. 

Next up, Condos and Townhomes:

55 new listings, kinda low, and ranging from $80 Grand to $2.8 Million.  
20 units came back on the market, 39 properties with a price decrease, and 11 sellers with an increase.  58 different properties went under contract, and another 46 went pending, a pretty decent week. And like last week only 13 condos or townhomes were unsuccessful in selling and were taken off the market or the listing expired, the lowest I've ever seen!  105 closed sales this week, a very good week for condos, and ranging in price from $60 Grand to $3.6 M!

Here's what's making news right now.

 Miami-Dade County real estate set a record for the most total home sales in a three-month period in the second quarter, as pent-up demand, more U.S. individuals and companies moving to South Florida and record-low mortgage rates fueled transactions.

Miami existing condo sales, surged 240%, from 2,078 to 7,067!  In other parts of the country, inventories have begun to rise and the pace of sales seems to be slowly softening, but we're not seeing it here.  At least, not yet.

Consider these stats for single family homes in the 2nd Quarter of 2021.  This is for the Miami - Ft Lauderdale - WPB statistical area, so all 3 counties basically.  Closed sales were up 66% year over year.  All cash deals were up 155%, it's all those carpetbaggers from NY, lol.  The average sale price was up 60%.  The median time to contract dropped from 46 days to 14 days, wow!  And our inventory, which was already very tight last year, has dropped by 59% to just 6 weeks of supply.  And remember, we need at least 5 and a half months of supply for the market to be in equilibrium.

So what does the near term look like for those buyers sitting on the sidelines waiting for prices to come down?  I call it smoking hopium because the market technical factors aren't working in their favor.

With global COVID infections rising and unstable political situations around the world, South Florida is seeing an increase in foreign homebuyers, many of whom are also coming for the vaccine and purchasing real estate.

Record-low interest rates, a record-high S&P 500, the appeal of stable assets in a volatile economy to homebuyers leaving tax-heavy states to purchase in Florida, where there is no state income tax, and work-from-home and remote-learning policies have all combined to create a robust market for luxury single-family properties in our area.  And at the entry level price range, we still have dozens of buyers for every property, that's right, DOZENS!

So when are prices going to start coming down?  It's going to happen sometime, but in my opinion, it doesn't seem too likely anytime soon.