This is a phrase we have heard quite often lately in the real estate industry. “The perfect storm” has been the way they refer to the circumstances that have happened within the last few months to create a unique situation within the industry.
In May, home prices increased by 4.8% despite Covid’s situation. However, there’s been predictions of the home prices stalling for the rest of the year and falling by May of 2021 by 6.6% in the US. The rise in cases in this time of the year has stopped many tourists from coming down to Florida which has paused in some way the rise of the prices according to FloridaTrend.com.
However, the good news is that a 6.6% fall in pricing is not that bad if we compare it to other crises from the past. On the other hand, while COVID-19 stops tourists and puts fear into many. The truth is that June was the strongest sales month since the last housing boom according to CNBC. Why? People have made that final jump to move back to the suburbs and even the countryside. Sales of newly built homes jumped 55% annually in June. Will it last? Who knows.
They say it’s “the perfect storm” for builders around the country. There’s been a decline in the supply of existing homes for sale (those who own in the suburbs don’t want to move out in a pandemic) increasing sales for brand new homes (which is also preferred by those leaving the city).
So, what are these buyers looking for? Buyers look for high-tech homes with all the amenities for working and schooling. They are looking for extra room for homeschooling and remote work. Sales in Florida actually popped 84% which is quite incredible despite all the unemployment and tighter conditions from the banking industry.
And this is why not everyone is so sure if Florida’s real estate will decline in prices. There’s still a shortage and despite the number of COVID-19 cases increasing, we also represent that lifestyle buyers are looking for. As the winter hits with COVID and other viruses this Fall-Winter in the north, F.lorida may become an even more desirable spot. Also, the increase in demand and sales is allowing sellers to raise prices by 57% of home builders across the nation according to CNBC’s article, said they recently bumped their prices.
So, as the cases lower and we hopefully avoid another shutdown, we’ll see where the storm takes us. I am definitely excited as with change, opportunities always arise in real estate. You just have to know how to see them.
If you want to be a part of opportunity seeking professionals, call me and let’s talk about joining my team.
Maria Flores-Garcia
La Rosa Realty Kissimmee
Tel: 407- 930-3530
Cell: 407-591-2670
info@larosakissimmee.com
3032 Dyer Blvd, Kissimmee, FL 34741
