South Florida: Glut of Homes
For every home that sold in South Florida in 2006, 14 did not. The number of homes on the market doubled to almost 66,000, as sales dropped to their lowest level in ten years. Those figures are based on information provided by the Multiple Listing Service and recently reported in a MiamiHerald article.
While a “normal” market has 6 to 12 months’ worth of houses for sale, the current sales pace in South Florida suggests that Broward County is up to 16 months and Miami-Dade is trending at 18 months. Condos in both counties are faring worse at more than two years worth of condos for sale.
In December 2006, the average asking price for homes in South Florida was down approximately 13% from a year ago. Competition to sell is fierce with many homeowners lowering their asking prices 5 to 10 and even agreeing to pick up closing costs. However, there is a consensus among many experts who believe the market has still not bottomed out. While it will probably do so sometime during 2007, when remains the mystery.
The message for potential home sellers? Have patience, lots of it.