[MIAMI-DADE] – In Miami-Dade County last summer, property sales were up over 140% compared to the same period last year, and, throughout South Florida, homes are selling fast and significantly above their listing price. The all year round sunshine and attractive lifestyle offered by the region has always drawn attention from out-of-state buyers, and now with the flexibility of working from home, many more are choosing to invest and settle in the area. However, this rise in interest has resulted in a lack of affordable housing stock throughout South Florida. The resurgence of the construction industry will help to deal with the shortage of suitable homes and, while some investors will still choose to fix and flip a property for profit, many local residents will prefer to wait for a shift in the property market and make the most of their current home.
Renovation before Relocation
Due to soaring house prices, buying a property in South Florida in the current market could mean that homebuyers wait longer to recover their investment. Instead, many are choosing to remain where they are and wait for prices to drop before thinking about moving. This gives them a chance to remodel and upgrade their home for their own benefit or for sale in the future. For eligible homeowners, taking advantage of Florida’s home improvement grants means they can carry out essential repairs to their properties. In addition to refurbishing the structure of their property, residents can also save money by repairing and protecting appliances, whilst improving the comfort and smooth running of their homes.
New Construction Meets Demand
As well as a rise in property sales, the number of construction starts tripled in June compared to the year before. Building was delayed during the pandemic but now construction is thriving and it is hoped that the construction of new homes will help to address the issue of low housing stock. While the construction of a range of properties is underway, out-of-state buyers and investors are particularly looking for high end homes, so the luxury market is particularly strong. This includes the construction of rental apartments to offer homes to buyers priced out of the current market and increase the supply of housing stock.
House Prices Start to Level Off
It could take some time to fully address the shortage of inventory in South Florida, but realtors are starting to see some small changes in the sales of property. Lately, house prices have started to drop compared to last summer, but experts predict any correction in the housing market will be slow and steady, without the number of foreclosures seen a decade ago. Even if a homeowner has fallen behind with their mortgage payments, it is likely that the value of their property will have risen enough to prevent it being repossessed.
The amount of interest from outside investors in property in South Florida has soared over the past few months. Building new homes will help to replenish housing stock but many local homebuyers will choose to make the most of their current property until the market settles.