Just a short time ago Parkland was a very lonely housing market, but as of late is has become a world wind of bidding wars and a hectic race between first time home buyers and investors.
Which leads to the question: Are the prices rising too quickly? Normally a home appreciates about 2-4 percent every year, but as of late the Parkland market has jumped more than 10-20 percent compared to last years home prices. The Fort Lauderdale Board Of Realtors announced, “That there were 4,517 available single-family homes in Broward at the end of January, down 27 percent from a year ago.”
Housing analysts have stated that if this market trend continues, then we could be facing another housing bubble, although not as severe as the one we faced from 2006 through 2011. Another fear is that first time home buyers are going to continue to compete with cash investors, as home values continue to increase. The end-user who is looking to buy a home for his/her family is going to be shut out, as income growth is not driving the prices In fact, the Sun-Sentinel reported that, “South Florida’s median household income dropped more than 14 percent in five years, according to the U.S. Census Bureau. In 2012, median incomes fell to $48,880 in Broward.”
There is also fear that mortgage rates increase by a point or higher by the end of 2013. Unlike during 2006, banks are scrutinizing buyers more carefully in order to make sure that the borrower can truly afford the home. As a result, this will keep the market from rising too much and getting out of control.
In Parkland, where the market has continue to rise as buyer demand has increased and as inventory is low, it is an ideal time for sellers that are considering selling their homes for top market dollar and then taking advantage of extra money in their pockets after the sales and record low interest rates currently in effect.
Historically, there has never been a better time to sell and buy, as in the past, it has been either a sellers market or buyers market, like with the stock market being a bull or bear market! The current market is like no other I have seen! If you are considering selling your home in Parkland or South Florida, please give me a call at: 954-609-0591, so I can answer all of your questions and concerns.
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