As we're all too familiar, via the press, the Florida real estate market has been completely chaotic over the last few years. Well, now buyers and agents are facing a new kind of chaos related to the home buying or selling process, and that is a phenomenon known commonly as "flash sales".
In times before, homebuyers could take their time during the process, visit the home to view it numerous times, become familiar with neighbors and the surrounding area. Most Palm Beach county homes go under contract on an average of 78 days, down from 90 days last year. Broward county listings on the market jumped down to 34 days from the previous 45 days during the same period. In Broward, Palm Beach, and Miami-Dade counties, homes have gone under contract three times as quickly as they have in previous years this past April. In some cases, Florida home buyers have been notified regarding a new listing, viewed the home the very same day, and by the time 24 hours had elapsed, signed a contract with an offer.
So what changed? Previously it could be said that an overabundance of new construction, "easy financing", and the ever-powerful media speculation are key factors that caused the Florida housing market to crash. Now, this strange sense of urgency has been born mostly from highly motivated buyers/investors paying in cash for Palm Beach, Broward, and Miami-Dade county properties, a profound lack of inventory, and remarkably low mortgage rates (hovering around 3%). Now, however, rates have ticked up by a stunning one percent to a total average of 4%, which has been just enough to rekindle the fire, and gotten buyers motivated to snag up south Florida property as quickly as possible.
Some real estate agents are even blaming technology for the newly fast-paced market and high turnover. Thanks to the power of the internet, mobile technology, and lightening fast notifications, buyers have become somewhat empowered. The majority of buyers have picked out properties that they're interested in seeing or even buying without even having met their agent yet. The access to details and south Florida listings that they were not previously given in days before the real estate market went cyber give buyers a new kind of confidence that they did not have before when solely relying on their agent for details and information.
Either way, a comeback is a comeback, and this fast-paced market in Palm Beach, Broward, and Miami-Dade counties has been keeping us on our toes. Fortunately our agents have all kept up with the current internet technology and are able to work with our clients as well as for them in order to snag their prospective Palm Beach, Broward, or Miami-Dade home as quickly as possible in this market of flash sales.
Information paraphrased/derived from the Sun Sentinel.