Written by: Frank DeValdivielso • August 18, 2020• Real Estate

Mid-Summer Update

What is your best summer memory? Baseball is summer, we do not have that this year. It is a weird summer. Still families are going on vacations to places like the mountains of North Carolina, The Keys, St. Septemberine, and most popular are the staycations: ice cream, smores, cooking out, banana boats, root beer, fresh vegetables from the farmer’s market like avocados, dragon fruit and corn, to name a few. Not your typical summer but we are adapting as a community.

What an exciting time in Real Estate. There is a sensible attitude change with sellers and buyers adapting to social distancing measures managing the uncertainty of the market. Here too we are adapting and doing well.

Looking at the numbers for The Keyes Company, Realtors in South Florida; as a community we need more listings. We are in a V-shaped recovery in real estate. June ended with $780m in pended business which should close in July and September. Through July 17 there are $300m in pended business, which is 23% higher than July 2019. What is driving it is the pent-up demand. People want outdoor living and 3% money…how low can we go?

Listings are down 30% versus last year. Supply for homes listed under $500,000 are at two months’ supply. Luxury listings of homes priced over $1m are at ten months’ supply. Compare that to earlier this year with 6-8 months’ supply for homes under $500,000 and 23 months for homes priced over $1m. You are in a very strong sellers’ market because of the low inventory compounded with the low interest rates.

We need inventory priced at fair market value. People buy time, money, peace of mind and security. All things being equal, people buy from people they know and trust. Still buyers will not buy above fair market value. It seems that lesson is still in our collective community knowledge. For sellers, this is not a time to wait. The market is so tight and fast that if you wait, you are going to miss it.

We know it is a great time to profit from the sale of your home today. If you wait to list, you risk your home value declining as the housing market buckles under pressure from possibly a future recession across the country in the next cycle.

During the second half of 2020 the market is going to make a run on single-family homes. Many of us are rethinking our downsizing and staying in our single-family homes with comforts beyond our previous awareness. Condos will have to adjust as demand wanes. However, with money as cheap as it is, condos are attracting people that are currently renting.

If you know of someone that is thinking of moving, please know that referrals represent much of our business. We ask for referrals from past customers, people that know us personally and those that have seen our track record over the last 22 years.

We are blessed to be part of this great company that truly lives a culture of care. Culture beats strategy every day. Culture and great strategy is The Keyes Company. Small like a local broker with the tools that beat the big guys.

As for buyers, you need to do your homework, get your credit in order, better get a realtor, better get a strong one and be aggressive. It is a sellers’ market.

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