Selling a Home In South Florida 2021, When Is The Best Time of Year?
Selling Your Home in South Florida 2021
Those currently considering selling a home in South Florida are in a good position to do so. With the year-round warm weather, tropical landscape, and Florida tax benefits, it is no surprise that the Sunshine State is one of the top destinations for those relocating. This year, due to the COVID-19 pandemic, Northerners are relocating to Florida in even greater numbers. As estimated by WorldPopulationReview.com, in 2021, Palm Beach County, FL is projected to increase by .92%, adding around 13,900 people to the total population. The trend does not seem to be slowing. However, the current seller's market is expected to make a hasty pivot soon. When is the best time to sell your house in South Florida? The answer to this question involves many variables that we will illustrate for you below.
What You Can Expect to Learn Here
When is the best time to list a home in South Florida? This is a question we hear frequently. To determine this, you will need to consider quite a few factors. Figuring out when is the correct time to sell can be complicated. We have created this write-up to help guide you along. We will start by going over why you are selling and if you are ready. Next, we will look at a few of Florida's different property types to help figure out your target demographic. We will then discuss the normal Florida seasonal market fluctuations. 2021 is not a typical year, and trends are forecasted to deviate, so we will go over a few pointers to reconcile those differences. This will include current statistics in your housing market, what to look for, and what they will mean.
Your Particular Situation, Are You Ready To Sell?
You must be ready and in good standing to sell. Identify why you are selling and what your financial situation is. Investigate your specific case. Although it is important to understand your demographic, keep in mind seasonal and atypical variations, and check out the current market, the most crucial point in deciding to sell is you.
The ideal time to sell your Florida home is when you feel confident and ready. Ask yourself probing questions to get to the bottom of it. Why do you want to sell your home? Are you relocating due to a job change? Perhaps your family is growing, and you need more space. Or perhaps you are retired and looking to downsize. Examine your situation. Maybe you are sorting out assets during a Florida Divorce. You may have a sizeable amount of equity and would like to sell to move to Mexico or buy your dream home. These are just a few examples of reasons you might be thinking about selling. Figure out the level of urgency involved. Do you need to sell now? Or do you have flexibility?
Additionally, are you emotionally ready to sell your home? Selling can be psychologically taxing. If you aren't prepared mentally to let go of some of the memories, you may want to wait. Conversely, you may not have a choice in the matter. Perhaps you have to sell now to avoid foreclosure. Currently, it is still a seller's market in South East Florida. Inventory is low, and average sale prices are up. Now is a great time to sell. Even if time is of the essence, be sure to do the mental work so that you have a copasetic experience listing, selling, and closing on your home. Once you are ready, find a reputable licensed real estate agent.
Typical Season For Selling a Home In South Florida
First, let's take a look at regular seasonal activity for various property types. For this, we have to consider our target demographic. If you are selling a single-family home in an all-age community, you would usually want to list it in the Spring. Many buyers with children prefer to move over the Spring and Summer while children break from school. If you are selling a home in South Florida located in a 55 and over community, you will probably want to list in the Fall to attract the snowbirds that visit from the North between October to April. If you are selling a condo, you will want to consider what type of buyer the building generally appeals to. Does the building attract retirees? Put your home on the market during snowbird season. If the amenities are child-friendly, you might consider targeting parents while school is in recess. If the building is full of young professionals or is very diverse in terms of ages and family status, you'll want to look at the market statistics to guide you.
Florida Market Statistics
Let's look at some helpful market statistics such as the level of housing inventory, the average sales price fluctuations, the average days on the market, and the list to sales price ratio. Market statistics will help you assess the competition in the housing market. First, you will want to look at the absorption rate to get an idea of housing inventory. This is the rate at which available homes are sold in a specific market during a given period of time. The absorption rate will help you determine how long it should take for your home to sell, but it also reveals important clues about overall market conditions. An absorption rate above 20% indicates a seller's market. Between 15 and 20 percent is considered a balanced market, and a rate below 15% is a buyer's market. Be sure to discuss the absorption rate in your market with your agent during the listing presentation so that you will have clear expectations for your sale and can plan your timing accordingly.
The absorption rate is key, but it doesn't tell the whole story. Look at the average sales price over the last three to six months. Your real estate agent can help you interpret these fluctuations to figure out if homes in your neighborhood are going up or down in price. The average days on the market and the list to sales price ratio in your community are other telling statistics. If homes are selling fast or close to the list price, it is probably a good time to sell. However, be careful with these numbers because a few overpriced listings in the neighborhood can skew them quite a bit. The right agent can walk you through the current market conditions to help you decide on the best time to list your South Florida home.
Additionally, Florida features a homestead tax exemption. A portion of your exemption can be transferred to a new home. Previously this time period was 2 tax years. However, in November 2020, Florida residents voted to pass Amendment 5, extending the timeframe to 3 years. Though there are no federal incentives for selling or purchasing a home, it is beneficial to look at your micro-community alongside your city and county municipalities to see if they offer any tax benefits.
In 2020, market conditions didn't really align with normal seasonal fluctuations. Severely limited inventory, record low interest rates, and pent-up buyer demand have created a strong seller's market. While we don't have a crystal ball, we anticipate that this will change as inventory increases with foreclosed properties hitting the market. Are you considering selling? Head over to the Home Valuation tab at Real-ativity.com.
Selling a home in South Florida is multi-layered. Foremost, you should look at your particular situation and be sure that you are ready to sell your home. Figure out when works best for you. Next, find assistance in a trusted, licensed real estate agent. Then, get educated on your micro-community, target demographic, and the current local real estate market compared to prior years. Once all of these issues have been addressed, you will be ready to start the process of listing your home for sale in South Florida.