Understanding the real estate market of any area where you plan to purchase a home is very important. Every local market is a little different. South Florida's real estate market isn't the same as New York City or Lincoln, Nebraska. Here are a few things to understand about the market in South Florida.
Growth and Higher Prices
Due to the competition, the South Florida real estate market has seen plenty of growth and surging prices. In October 2013, the average home price increased by over 10%. This is mainly a result of the high competition and multiple bids sellers are receiving.
The tighter market has caused many new homes and condominium buildings to begin development. Miami-Dade, Broward and Palm Beach counties are seeing new residences popping up because of the shortage of inventory.
The market in South Florida has seen an influx of cash buyers over the past year with strong foreign currencies. This is an attractive area for many foreign buyers and the market has benefitted from these cash buyers tremendously.
Lower FHA Loan Limits
The government plans to change the FHA loan limits all across the country for 2014. IN South Florida, this will mean a maximum FHA loan of $345,000 instead of the old limit of $423,750.
Both Palm Beach and Broward counties saw many homes rise in value. According to Zillow.com, over 25,000 homeowners in these counties saw a significant increase in the value of their home.
These are just a few of the things to understand about the South Florida real estate market. If you plan to buy or sell a home in the near future, it's always a good idea to consult with a real estate expert in the area before making your final decision.
Gloria Singer is the Broker of Boca Expert Realty, a boutique Boca Raton real estate company with a focus on professional service and an unparalleled customer experience. Our select agents are amongst the top performing professionals in the field. Visit www.BocaExpert.com for information on Boca Raton, Delray Beach and Highland Beach real estate and to connect with an expert in the local market.