Florida Blog

This past couple of weeks there has been a dramatic increase in the number of showings and even some offers.  We speak to a lot of buyers, many of which we met during season and were waiting till the summer to look at real estate.  This is what I am hearing. 

Prices are down 20-30% over two years ago and about 10% over this past season Jan- April.  Many homes are now reasonably priced.  We are not seeing price reductions across the board.  Indicating that the market has begun to stabilize, where home sales are occuring because buyers are getting better value purchases.  Also, there is unprecedented selection of high quality homes on the market.  So you should be able to get a home you like at a good price. 

Sellers want to negotiate.  We are seeing on average about 10% being negotiated off reasonably listed properties.  This is primarily due to the fact that there is still a lot of inventory, sellers are looking at a long summer with additional carrying costs, and with season 6 months out, sellers don't expect many buyers in the summer.  So they are giving deals to buyers!

Additionally, interest rates are still at historical lows and are expected to increase.  Florida has made some recent efforts to roll-back insurance premiums. 

If you are thinking of buying i Florida, consider this summer, you are going to have to endure the heat looking at property, but you may find some good deals and one of the best buyer's market that we will see. 

Many people know that in purchasing new construction you can often get incentive pricing from Developers.  The reason is quite simple- it is harder to sell something that the buyer can not see and walkthrough. 

Likewise another way to get real incentive pricing is to purchase inventory homes or get in on a developer closeout. 

Some buyers have walked away from contracts,  due to the fact that they bought at the peak and market value has gone down. Typically they are walking away from 10-20% down payment.  This leaves developers with inventory homes.  Developers are not setup to carry inventory and they have already pocketed that 10-20% down payment.  Many developers get very agressive on pricing coming down 20-30% from the original purchase price to move this type of home.

Developer closeouts are much the same.  The home probably was built without a buyer purchasing it.  As the home gets near completion, developers get aggressive on pricing.  They do not want to carry inventory. 

If you are considering buying, ask about inventory homes- these are often not listed in MLS, but sometimes are the very best deals for a new home!