Written by: Frank DeValdivielso • June 22, 2020• Real Estate

It is Beginning to Look Like the Spring Market Again

The number of homes sold in Pinecrest, Palmetto Bay, South Miami and Coral Gables is reason enough to realize the market is coming back.

However, some mortgage lenders have tightened the requirements for loans to reduce their exposure. There are some homeowners that were forced to accept the forbearance, offered by the banks, to help offset the reduced income during the last couple of months. In addition, the financial institutions were flooded with demand for business loans at an unexpected rate. This puts pressure on the lenders and has a direct impact on real estate transactions.

One area that can help the lenders reduce their exposure is with appraisals that are lower than the contracted sales price agreed to between buyer and seller. This forces the parties to come up with a solution to bridge the gap of the sales price and appraised value.

For the foreseeable future, cash buyers will have more leverage than buyers obtaining loans. The good news is there is enough inventory for both to select from. Also, buyers are going to benefit from all the projects prospective sellers were able to get done in the last month.

Another consideration during this moment is we have all lived in our homes intensely. At home, we were blessed to have two of our three adult children and a fiancée living with us. Fortunately, the house has all the rooms necessary and room in the backyard for the respective pets. In addition, there is an office. We have re-learned to live with each other and in our home.

Some may not have the same experience. We have heard from families living in condos that are looking to move into suburbia and are willing to commute in exchange for the additional space that a single-family home offers. We have also spoken with homeowners wanting to downsize because of the number of projects having a single-family home entails. In either case, the local market where buyers upgrade is very much alive. To that end, please look at your property tax bill and see what the difference is between the assessed value and the just market value. That is the amount that you will be able to carry to your new home in Florida. If the just market value is too low, challenge it. If you need help with that, give us a call.

For those that are really enjoying the space, look at the two-acre listing we have at 13291 Old Cutler Road and the five-acre home at 20895 SW 210 Street. Both equestrian friendly and great for multi-generational living.

Our community is a very desirable place to live in and high on the list of corporate transferees arriving in the next few months. We have started working with several new buyers who are moving to the area for their new jobs that want to live here. They will benefit directly from the projects and improvements you have made to your home during this time out.

Time in! Yes, with all the necessary precautions to protect us all.

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