More properties return to the housing market, the number of closed sales is reducing, while the last year’s buyer frenzy starts to taper.
Home sales in the South Florida market are beginning to drop. For instance, the number of closed sales in the Palm Beach County reduced by over 30% in June, by 20% in the Broward County, and by 26.1% in Miami-Dade County.
At the same time, the inventory in the real estate market has been growing for two consecutive months. The number of listed properties in Palm-Beach, Broward, and Miami-Dade Counties has increased by 50%, 22.5%, and 19% respectively.
Real estate agents observe that the buyer frenzy is lessening. Buyers are less involved in bidding wars with each other. The demand for real estate exists and it surpasses the supply but it is not as frenzied as it was half a year ago. Some buyers cannot catch up with these changes and still list too high prices for their properties. Increasingly more home sellers in South Florida have to reduce their initial asking prices – on 20% of listings in West Palm Beach, 15% in Fort Lauderdale and 13.7% in Miami.
Under such circumstances, a buy-to-rent property can be quite a profitable investment.