Housing Market Still Favors Sellers - but is that Set to Change?

Real Estate

Ever since interest rates decreased at the beginning of the pandemic, the real estate market throughout most of the country has heavily favored sellers.When interest rates decrease, more buyers enter the market to secure mortgage loans with low interest rates. High buyer demand means that sellers oftentimes receive multiple bids.

The combination of low interest rates, extremely quick sales, low inventory, and rapidly increasing price gains, has the housing market favoring sellers by a considerable amount. While this is still true today, market conditions may be set to change in the near future.

What the Future Indicates for Buyers

Over the past six months, interest rates have been steadily increasing. While rates averaged around 3.05% towards the end of 2021, they have since increased to an average of 5.10% as of May. Even though there are still a high number of potential buyers on the market, the higher interest rates have allowed the market to stabilize somewhat.

Keep in mind that home values rose by upwards of 20% over the course of 2021, which means that buying a home today may be somewhat more expensive than it was just one year ago. If you’re set to buy a home, the housing market pivoting away from sellers is highly beneficial.

While home prices may have been lower one year ago, the increased buyer competition in the market made it difficult for many buyers to make bids that were high enough to satisfy the seller. Once demand decreases among buyers, home inventory will increase, which means that you may find it easier to purchase a home without needing to make an offer that’s far higher than the listing price.

In general, you should expect demand to still be relatively high and housing inventory to be relatively low. However, both of these metrics have improved in recent months, which means that the market shouldn’t be as intense as it was in 2021. Home prices are also expected to rise this year but shouldn’t come close to the 20% increase that occurred last year.

What the Future Indicates for Sellers
If you’re looking to sell your home but worry that the market may not be favorable for doing so, the truth is that the housing market still favors sellers. The main difference is that there may not be a lengthy bidding war when you list your home on the market. However, sellers still hold ample amounts of negotiating power when an offer is made. If you want to make sure that your home is sold without delay, perform any necessary upgrades and repairs before placing your home on the market.

While it’s unlikely that the housing market will shift completely to favoring buyers, it’s looking increasingly likely that the market will be more balanced over the next year or so. A balanced and healthy market is great for buyers and sellers alike.

by Rick

Move-In Ready Vs. Fixer-Upper: What to Buy?

Real Estate

When you buy a new home, two things to have at the back of your mind are how much you will spend to maintain it and how much you will make when you eventually sell it. Believe it or not, the maintenance cost of a building and its ROI is often determined well before you buy the home.

What are the factors that influence these numbers?

The three most important things to consider before you buy a home are its location, selling price, and the physical condition of the building. Of these three factors, location is evidently the most important. But after you have decided on your preferred location, you want to look at the prices of the available house.

Perhaps, the biggest influence on the selling prices of the homes you will consider is their physical condition. Typically, you will have a choice between homes that are in good condition but are being sold at a higher price and homes that are in poor condition and are more affordable, as a result.

The higher-priced houses, called move-in ready homes, will be ready for you to move in as soon as you complete the purchase. However, you will have to pay more for that house. The lower-priced home will require further investment of money and effort to bring it to the place where you can live in it.

Between the move-in ready home and the fixer-upper home, which one should you buy? Naturally, you want to save as much money as you can when buying a house and the fixer-upper might seem to offer this opportunity. But things are never that simple, which is why you should read this blog before you make the decision.

The pros and cons of a move-in ready home vs a fixer-upper home

The better option for you depends on the combination of your appetite for risk, how much time you have, your level of know-how (are far as home remodeling is concerned), and of course, how much money you have. Below is a list of the pros and cons of both options.

Fixer-upper home

Pros

It is more affordable – The average fixer-upper home will sell for 8% below its market value. The lower price often means you can buy a home in a location you would not typically be able to afford.
Lower property taxes – Since property taxes are based on the selling price of a home, you will pay significantly lower taxes on a fixer-upper than if you buy a move-in ready home.
Instant value appreciation after renovations – The value of the home will increase as soon as you complete your renovations, and you may sell it for immediate profits.
Freedom to customize the home – You are free to create the home you want instead of being stuck with somebody else’s design. A fixer-upper gives you the chance to make your dream home.

Cons

The risks are higher – The risk involved when buying a fixer-upper home is considerably higher than the risks you face with a move-in ready home. You are never quite sure what your eventual costs will be.
You need to manage contractors – Unless you have experience with home remodels, a fixer-upper could prove more trouble than you could handle because of the different sets of contractors and workers you have to deal with.
Potential for unpleasant surprises – Even with the most thorough home inspection, you never really know what lies behind the walls or flooring until you start to tear them up.
Additional living expenses – You have to live somewhere while you renovate the fixer-upper. You might have to maintain two homes during the period or bear the cost and inconvenience of living in a hotel.
Renovations are unpredictable – Building projects are notorious for never going to plan due to unforeseen events. Your renovations could take a lot longer than you envisioned.
You may need permits – If you will be making structural changes to the building, you will need permits. This can be a lengthy and expensive process.
Problems with financing – Most conventional lenders will not give you money to buy a fixer-upper because of the difficulties they will have when evaluating the home.

Move-In Ready Home

Cons

More expensive – You have to pay more to get a move-in ready home. You could be forced to buy in a less desirable location.
Very little room for customization – There is almost zero opportunity to customize a move-in ready home. You have to live with the preferences of the person who designed the home.
You will eventually have to renovate – At some point, you will have to renovate the move-in ready home, to boost its market value or to make it more home-like. In reality, there is no way you can completely avoid spending some extra money on the home.

by Gilman

How is the Housing Market? Opinion

I've been getting a lot of phone calls lately from possible investors with anticipation on the housing market taking a severe hit. It feels like everyone continues to wait for 2008 to happen all over again. I am writing to tell you it won't.

This crisis is different from the mortgage and financial crisis we had over a decade ago. Yes, there are many people being laid off as approximately 3.3 million Americans have filed for unemployment. And yes, this in turn has taken some buyers (approximately 37% according to a March poll from the National Association of Realtors) out of the hunt for a home. But just as many buyers that have removed themselves from the market, there is also close to the same amount of sellers that have done the same.

Basic economics tells us all that the higher the supply or inventory, vs the demand there is, the lower the sales price. This is what happened in 2008-2010; most people purchased (unqualified for the loan they were obtaining) with the intention of selling again within months or a year. The market got saturated with inventory, people held on to their properties for longer than they anticipated unable to afford the payments required...and we all know what happened from there.

In today's crisis, there still appears to be an equal balance of sellers and buyers, keeping prices fairly steady. My message remains the same if you are a buyer: stay the course, count on your realtor to send you videos of the homes you are interested in, go through the process of elimination from the comfort of your own living room and go see the homes that really interest you once you have narrowed down your list. If you are a seller: stay the course; the unmotivated sellers will withdraw their listings from the market allowing less inventory to choose from, while the motivated buyers remain on the search for their dream home, and it could be yours!

For a free virtual consultation and to discuss your real estate vision, please do not hesitate to contact the husband and wife real estate duo.

This update is brought to you by Jon Gilman, a specialist in Coral Gables homes for sale. Whether you’re interested in buying a condo in Coral Gables or a single-family home in Coral Gables, or in the surrounding Miami areas like Pinecrest, South Miami, Schenley Park, and Downtown Dadeland contact Jon to assist you in discovering why the city is among the most valuable and in-demand in South Florida. Call 786.486.9560 for any questions on Coral Gables Real Estate.

by Rick

Adapting to Change

We are all going through unusual times and we are focused and determined to adapt to the changes proposed to our workforce and our daily lives. Being in the real estate industry we are used to being face to face with people on a daily basis; with other realtors, with sellers to discuss the value of their home, with buyers to show homes and write up offers and, with all parties including lender, title company, attorney at our favorite table: the closing table.

Times have changed now where technology must be utilized more than ever. To keep up with today's social distancing methods for the greater good of the world we are providing virtual open houses and virtual tours of our listings to go with floor plans. Our listings also have an electronic lockbox where only agents can provide access to their clients in order to minimize unnecessary gatherings.

Please click on the link below to preview a home tour of a house we just put on the market at:

9421 SW 88th Ter Miami, FL 33176

For marketing our listings we provide these virtual tours on multiple websites and Coldwell Banker lists their properties for sale on hundreds of different websites across the globe.

Although we are adapting to change our job remains the same: to make a concerted and proactive effort in taking all measures possible in letting the entire world know that we have a house for sale.

This update is brought to you by Jon Gilman, a specialist in Coral Gables homes for sale. Whether you’re interested in buying a condo in Coral Gables or a single-family home in Coral Gables, or in the surrounding Miami areas like Pinecrest, South Miami, Schenley Park, and Downtown Dadeland contact Jon to assist you in discovering why the city is among the most valuable and in-demand in South Florida. Call 786.486.9560 for any questions on Coral Gables Real Estate.

by Rick

Finding the Right Real Estate Agent

When it's time to buy or sell a home or condo, a crucial step in the process is finding the right real estate agent. Working with the right agent can mean more money in your pocketbook, your home spending less time on the market, and an overall buying or selling process filled with fewer headaches. Considering the many different real estate agents that are out there, how do you find the right one?

For starters, you'll probably want to approach the agent you're considering as if you were conducting a job interview. Ask all necessary questions, take a moment to evaluate more than one agent, and don't make any final decisions until you've fully vetted the person you feel is best. Remember that your needs and goals are entirely unique, so pay strict attention to how the agent is communicating with you. If he or she is treating you like just another generic client, it's probably better to move on with someone willing to give you personalized services.

Particularly when selling your home, time is of the essence. Talk with your prospective real estate agent to see what marketing plan or strategy they have in place to help you sell your home. The bulk of marketing will probably be done online, as print has become less of a viable medium.

This update is brought to you by Jon Gilman, a specialist in Sunny Isles condos for sale. Whether you’re interested in buying in Jade Beach, Jade Ocean, or would like to explore a Sunny Isles Beach rental, contact Jon to assist you in discovering why the city is among the most valuable and in demand in South Florida. Call 786.486.9560 for any questions on Sunny Isles real estate.

by Jorge Lopez

The Palazzo Del Sol Penthouse

One of the priciest neighborhoods in all of the United States is Fisher Island. A highly affluent community near Miami Beach, it is perhaps the most private community in South Florida. Residents and island visitors must use the ferry to get on and off the island as there is no traditional means of roadway access. With its high-value real estate and notable residents like billionaire Oprah Winfrey, Fisher Island provides one of the finest living experiences in the country.

The ten-story Palazzo Del Sol is among the most recent Fisher Island developments. It encompasses a little over seven acres and has 47 unbelievably elegant units. Today we're taking a look at its penthouse, boasting over 9,500 square feet of living area with seven bedrooms and bathrooms. Features in this incredible Fisher Island home include a summer kitchen, a rooftop pool, a jacuzzi, and two-level terraces.

Amenities for Palazzo Del Sol include but are not limited to a high-end fitness center, private massage rooms, a “Kidville” play room, poolside cabanas, and entertaining lounge. Fisher Island itself has a school, restaurants, a beach club, tennis courts, and more.

by Jorge Lopez

Early Sales Success at 400 Sunny Isles

Last month, Sunny Isles Beach saw another project completion, the fourth one in 2015. The 400 Sunny Isles condo is a pair of 21-story condominiums featuring a total of 230 units. Sales began on December 8th and since then at least forty units within the project have been sold, achieving $33 million in sales. During the month, there were fourteen units listed at a price of $1.5 million, or about $685 per square foot.

Sunny Isles Beach was one of the most popular seaside destinations in South Florida last year, attracting a major influx of local and international buyers. It was the fourth most active market located east of Interstate 95, bested by Downtown Miami, Hollywood-Hallandale Beach, and the downtown area of Fort Lauderdale in Broward County. Right below Sunny Isles Beach was the city of Aventura, located next door to Sunny Isles Beach to the west.

There are five additional buildings expected to emerge within Sunny Isles Beach soon. As for 400 Sunny Isles, the units have one, two, three, or four bedrooms. Amenities include a wet and dry dock marina, a beach club with a restaurant, an infinity edge pool plus an Olympic-style pool, jacuzzi, tennis courts, a water activities center, and much more.

by Jorge Lopez

VIDA at the Point Set to Begin Construction

One of the hottest markets in South Florida is the city of Aventura, which has seen a tremendous amount of new condominium projects announced in recent years like Echo Aventura, Bellini, Prive, and more. One of the latest projects set to join the ever-growing list is VIDA at the Point, a waterfront condo expected to begin construction later this month after successfully achieving fifty percent of its sales target.

Unlike some of the other projects, VIDA at the Point is a much smaller building comprised of just six units. These six residences are expected to have between 3,260 to 3,717 square feet of living area and will have three or four bedrooms plus four or five bathrooms. Select units are also expected to have a terrace on the rooftop and an elevator. All six units will have an optional boat slip capable of accommodating yachts up to ninety feet and they will each have custom finishing courtesy of Interiors by Steven G. Other features include Italian kitchen cabinetry and porcelain floors.

VIDA at the Point will share its amenities with those of The Point community. These amenities include a restaurant, fitness facility, a trio of swimming pools, playground, a quartet of tennis courts, and a spa spanning over 20,000 square feet. The building is being designed by KZ Architecture.

by Jorge Lopez

Casa Clara in the Venetian Islands

Although it's currently closed, many people have traveled on the Venetian Way to get between Miami and Miami Beach. The roadway intersects all six of the Venetian Islands and one of these islands is Di Lido Island. The longest in terms of its width, it's nestled between Rivo Alto and San Marino Island. Like the rest of the islands, the waterfront Di Lido homes for sale are among the finest properties, maintaining the same degree of allure as the rest of the neighboring islands belonging to Miami Beach.

Casa Clara is one of the finest homes on Di Lido Island. Located on the southwestern side of the island, the seven bedroom, nine bathroom property sits on a large lot spanning over 20,000 square feet and the home itself provides 11,500 square feet of living area. Beautiful vistas of Biscayne Bay, a tropical modern design, these two qualities only hint at the Casa Clara's incredible living experience. Some of its features also include a pool, marble flooring, a lush garden, and much more.

The Adrienne Arsht Center for the Performing Arts, the Miami Beach Convention Center and Lincoln Road Mall are two places near Casa Clara and the Venetian Islands.

by Jorge Lopez

Aventura Welcomes the Avva Residences & Marina

The city of Aventura remains a favorite when it comes to condominiums. From the various buildings on popular Turnberry Isle to the newer projects like Echo, Aventura real estate continues to grow with new projects. One of the latest to launch sales is the Avva Residences & Marina, a five-story luxury waterfront building comprised of just five units.

Unlike larger condominiums, there will only be a single unit on each floor of the Avva Residences & Marina available with three or four bedrooms. Each of these units will have just over 5,000 square of interior space and they will also have a terrace that's 1,123 square feet with a summer kitchen. The prices for these units will range from $3.15 million to $4.25 for the building's penthouse.

Besides the large terraces, Avva Residences & Marina will also have a pool on the rooftop, a yacht slip for each unit capable of accommodating vessels up to eighty feet in length, and interiors by renowned designer Steven G. Other amenities include a playground for children and a fitness facility. The building will also be pet friendly.

Avva Residences & Marina will be located at 20605 Northeast 34th Avenue.

by Jorge Lopez