The real estate market in South Florida is changing drastically.
Palm Beach County home sellers are putting big price tags on their homes. According to Trulia.com the asking prices for the properties have increased 14.5 percent in the area compared to August of last year. They are the fourth raking region in the nation. Lakeland took third place with a 14.8 percent increase, and Birmingham, Alabama, and Miami-Dade County tied at 15.6 percent. Broward County only increased 10.4 percent, ranking at 24th in the nation.
Real Estate Market in South Florida: Why is this happening?
South Florida’s home prices were at their lowest in 2011. However, they have been firmly augmenting from year to year due to investors and other buyers. However, home prices have started to attune in recent months. The data accumulated by Trulia is based on townhomes, condominiums, and single-family homes within the 100 biggest regions in the nation. Trulia also stated that the majority of the locations throughout South Florida whose prices enlarged the most were also the most affected areas during the crash of the real estate market. This is called the “rebound effect”.
Another reason for the prices of properties increase is due to the strengthening of the workforce. And, because of the delayed foreclosures finally pushing forward in Florida. Because foreclosures usually bring down the prices of homes in surrounding areas the less foreclosure you have in that area the higher the prices of the properties. Although sellers are enjoying the enhanced market, some are not getting carried away and asking well more than the property is worth.
Due to low inventory, sellers with properties that are move-in-ready are asking more than the fair amount; the buyers are noticing. Homes that are priced they market value are being sold a lot faster than those that are not. It is not unusual for an overpriced to sit on the market for 30, 60, or even 90 days. When the home doesn’t sell for a while, the price then has to be reduced. Buyers question why a home has been sitting on the market for a while. Moreover, even more red flags pop up when it has a reduction price.
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