Why South Florida Buyers are Willing to Pay More for Homes Now

by Isaac Benmergui, Esq on March 27, 2013

money puzzleIt’s been a rough few years for the South Florida real estate market with huge gaps between the asking and selling price on the majority of properties from 2008 to 2011. Those days are gone.

For 2011, Miami home prices were hovering around 97.1 percent of the national average. In the most recent survey, that percentage had increased to 98.3 percent.

What’s behind the increase in Miami’s home sales prices?

  1. Lenders are making more money available to loan. It doesn’t help lenders to be so strict with their lending practices that people cannot qualify for loans; banks make money by lending money.
  2. Good homes are in short supply and people are willing to bid competitively for the home they want. Bidders may have to put in two or three bids in order to be the winning bidder, which simply drives the home price up.

As more homes come to market with the spring buying/selling season prices should remain steady, and home buyers should have more properties to choose from in the next few months.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

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