Not an economist here, just an enthusiast!
Even though I am commercial focused I like to pay attention to the market as an investor I want to understand what is going on.
The market is definitely softening. I’m doing a deal right now on a townhouse in the urban core and it was just a few offers, whereas 6 months ago before the Mortage rates popped up there would be at least 15-20 offers making it almost impossible to score a property for a Buyer. We were seeing waived inspections and contingencies, over bidding by 50-100k. That is much much less – thank G-D.
I personally do not think there will be a crash here. Lending is very tight, much harder to get loans vs 2007/8. Lots of equities in homes, both my properties are significantly up on equity. Rents are very high which keep pushing ppl into cheaper residential properties. The mass exodus to SFL has chilled, but the inflow is still there.
What does the data show? These are all comparisons from June 2021
Median price is up almost 20% making SFHome in Broward 590k for June2022!!!!!
-Down 20% in sales, but year to date is 13%
-New pending sale down almost 30%
-Pending inventory down 30%
-Inventory of active listings up 22%
-Almost 30% of all sales are cash YTD
-YTD offers are 100% of asking price
-YTD inventory is at 1.3 months (balanced market is 6)
-Shorts sales and foreclosures are very minimal
In 2020 it was at 6.7 months making it Buyer’s market. Now it’s at 1.8 months, down 25% from last year.