In the early days of the coronavirus (COVID-19) outbreak, the pandemic was set to have a significant effect on the global real estate market. An absence of open houses, hesitance from buyers, and reluctance by sellers all contributed towards an air of possible downturn. But reports from certain areas show that the real estate industry has been able to hold its own through COVID-19.
Take the South Florida real estate sector, for instance. As reported by the Miami Association of Realtors, select regions in the state were not only able to sustain through the novel coronavirus outbreak, but surpass the usual expectations.
The change was noticeable across multiple counties in South Florida, and indicated a yearly improvement in pricing and sales. If you are a seller or buyer in the region, these statistics can help you make beneficial decisions for your future.
Miami-Dade and Broward Post Positive Numbers
The counties of Miami-Dade and Broward recorded a trend of positive movements throughout the month of March 2020. You may also remember it as the month when the pandemic spread its roots in the U.S.
According to statistics, both areas remained strong through their median offer and closing prices. But that’s not all. They were also able to follow a similar trend in sales, which grew through the month on a consistent basis and remained on par with market movements from last year.
For Miami-Dade County, the median price for a single-family unit rose by 9 percent in comparison to March 2019. Condos presented a similar story with a 9.8 percent annual growth. The region also recorded a total of 2,323 home sales, which is almost identical to the same time last year with a 0.43 percent growth.
For Broward County, the single-family unit median price saw an increase of 6.8 percent as compared to March 2019. Condo prices in the county rose by 6.2 percent. There were a total of 2,835 home sales, which is almost the same as last year with a growth of 0.18 percent.
South Florida’s Resilience Brings New Hope
Since South Florida real estate is known for its competitive trends, the statistics breathe new life into the real estate sector through multiple aspects. Firstly, they show that particularly popular regions can hold their own amid difficult conditions. Secondly, they demonstrate the ability of the real estate sector to improve through challenging situations.
But it is not just all due to the tenacity of certain real estate markets. It is also because of the realtors’ drive to adapt to new circumstances to cater to buyers and sellers like you.
As restrictions related to the novel coronavirus grew tighter, South Florida realtors started to invest in the aspect of virtual showings and digital closings. By letting buyers take in the sights of a home without setting foot at the property and providing options to accommodate video meetings, the realtors in South Florida molded their everyday practices to meet new demands.
Current Shortage of Inventory Might Create a Competitive Market
These improvements and changes came in the face of a shrinking inventory in both Miami-Dade and Broward.
While both counties closed more than 90 percent of listings at or near the asking price, sellers’ hesitance to put their homes on the market was evident through the month. As compared to March 2019, March 2020 noticed a significant decrease in home and condo inventory.
But as the market moves forward to come out at the other end of the pandemic, this shortage in inventory is an indication of long term improvement. Realtors estimate that when life gets back to normal, the cooped up demand would come out in full force and create more competition in the region.
This also means that if you were looking to close on a transaction in South Florida at affordable prices, this would be the ideal time to do so.
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