South Florida's Red-Hot Housing Market Icing Out Potential Buyers Who Can't Compete With Investors
MIAMI GARDENS (CBSMiami) – Home prices continue to surge in South Florida, and the trend has left many homebuyers in bidding wars or unable to find properties.
"I've been looking for a home for about two years, it has been a very difficult and kinda of a strenuous process," said South Florida resident Alexander Shepard.
Shepard adds despite have thousands saved and great credit his dream of becoming a home owner has been virtually unattainable.
"A house might be on and off the market within three or four days, sometimes two days. So before I can even get the paperwork signed, I'm told that the house is off the market," said Shepard.
According to Realtor.com, Miami-Dade County's total home sales surged 142% from this time last year. In addition to homes being sold in record time, realtor Brittney Woods says many properties are also being sold well above the listing price.
"You probably won't even put a contract in at the asking price because people are actually bidding now. So let's say we have a two-bedroom condo that's listed at $100-thousand, but the highest offer that they got was $150-thousand, they'll likely go with that $150-thousand offer," said realtor Brittney Woods.
Woods says many of those offers are cash offers being made by investors, giving the buyers the leverage to ask whatever price they want. And she adds North Dade and South Broward are among the ZIP codes where, for example, homes that used to sell for under $200,000 have seen their prices jump by $50,000 to $100,000 in the past year.
"The real estate market right now, as is common knowledge, is a sellers market. Maybe for the last year and a half it has been difficult for most buyers to break out in the market – one we have very low inventory. And Miami Gardens is one of those hot spots – 33056, 33169, 33179," said Woods.
As for Shepard, he says despite the obstacles he's not giving up on his dream of being a homeowner
"The more I save, the more I make the market is kinda out pacing it so options are just slim still there is no reason to stop," added Shepard.
