Will the Market Crash Soon?
Here is what key market indicators have to say about its future. Recently, a lot of clients have asked me if we’re in a real estate bubble. The market continues to be hot, and some people are worried it’s just a matter of time before the bottom falls out of it. Based on key market indicators, I can safely say that we are not in a bubble. Every statistic points toward continued growth. One important indicator is the Case-Shiller index. This index tells us what’s coming up based on shifts in supply and demand. Right now, it doesn’t look like either will change anytime soon. One of the biggest causes of our last crash in 2008 was artificial demand. Banks were giving loans to people who couldn’t afford them to drive up home sales. When people couldn’t afford their interest payments, foreclosures flooded the market, and home prices plummeted. “Our market is hot because supply is extremely low and demand is high.” On the other hand, the factors affecting our market are organic. Demand is high due to our great interest rates and the effects of the pandemic. Now that many people have the opportunity to work from home, they are moving away from job centers and toward more desirable areas. To complement our high demand, we have very low supply. We have not seen an increase in the number of homes entering the market, so our low supply is likely to continue for a while. On top of that, inflation is driving up the price of everything, including real estate. That means homes are likely to appreciate for the foreseeable future. If you are thinking of buying a home soon, I suggest you act fast. Interest rates remain low, but they could change at any moment. They have a stronger impact on your buying power than home prices do, so take advantage of them while you can. If you have any questions about today’s blog, please reach out to me via phone or email. I am always willing to help.
South Florida by the numbers: Pompano Beach’s moment in the sun
It’s always exciting when the stars align for a particular South Florida neighborhood, and everyone in real estate seems to realize its promise for greatness at the exact same time. Over the past 10 years, we’ve seen this phenomenon in places like Fort Lauderdale Beach, Sunny Isles Beach, Miami’s Edgewater, and Wynwood, and now it appears to be Pompano Beach’s turn. The region’s biggest names in condo development already have pre-construction luxury projects dotting the coastline, and major improvements to the city’s innovation district and a well-known gaming complex could further elevate the area’s real estate profile. Without any further “pomp” and circumstance, we explore the transformation of Pompano Beach in this edition of “South Florida by the numbers.” 28 Number of months to complete the new Ritz-Carlton Residences, Pompano Beach, once construction starts. The Fortune International Group and Oak Capital project will have an east tower overlooking the ocean, and a west tower overlooking the Intracoastal Waterway. [NBC] $1.8 million As of March, starting prices at the Related Group’s Casamar oceanfront condominium development, where units will range from 1,000 square feet to 3,900 square feet. Casamar is the second Related Group condo already introduced in Pompano Beach this decade, with Solemar launched in 2020 and currently under construction. [TheRealDeal] $94 Million Size of a construction loan secured by New York development firm Chetrit Group to build a 121-unit condo project with a 20-slip marina in Pompano Beach’s Hillsboro Shores neighborhood. The Kobi Karp-designed project is expected to break ground and launch sales in two to three months. [TheRealDeal] 276 Acres in Pompano Beach’s downtown area, generally defined as I-95 on the west, Dixie Highway on the east, Atlantic Boulevard on the south and Northwest Sixth Street on the north. The area includes an innovation district for high-tech companies and the “Old Town” section designed as an epicenter of dining and entertainment. Several new restaurants are being developed for the sector, as are drainage and other infrastructure improvement projects. [SunSentinel] 223 Total acreage of a “city within a city” complex in what will be a yearslong remake of the current Isle Casino in southwest Pompano Beach. It will feature a dramatically expanded gaming center and parking garage, hotel, office campus, apartment units, movie theater, shops, restaurants, Tri-Rail station, and e-commerce fulfillment center. In this massive project co-developed by Caesars Entertainment and The Cordish Companies, the gaming venue will be rebranded as Harrah’s Pompano Beach, and the other elements will be under the LIVE! Resorts Pompano brand. [SunSentinel] “South Florida by the numbers” is a web feature that catalogs the most notable, quirky and surprising real estate statistics. This column is produced by the Master Brokers Forum, a network of South Florida’s elite real estate professionals where membership is by invitation only and based on outstanding production, as well as ethical and professional behavior. Photo: rendering of 2629 North Riverside Drive and a rendering of Casamar (Casamar) The post South Florida by the numbers: Pompano Beach’s moment in the sun appeared first on The Real Deal South Florida.
How Can Buyers Make Their Offers Stand Out?
Here’s how you can make your offer stand out in our crazy market. As you probably already know, we’re living through a crazy seller’s market right now. If you’re a buyer, how do you compete? Today we want to give you our best advice to make your offer stand out in a competitive market. If you want to make your offer more competitive, the best thing you can do is offer in cash. This is because cash offers have less risk and fewer strings attached. In our experience, cash offers get accepted more often because they are more likely to close. So why do cash offers have less risk than financed ones? Financed offers come with contingencies, including the inspection, appraisal, and financing contingency. We usually don’t recommend you waive your inspection contingency; it’s very risky. However, you can lower the length of the inspection period to reassure your seller. “Work with your agent to find out what’s best for you.” Typically, financed offers require an appraisal since they’ll only pay for what the home is worth. If the home appraises at a lower price than your seller wants, you can always offer to pay the difference, or the appraisal gap, in cash. This way, you can take advantage of financing while offering less risk to your seller. The last contingency is the financing contingency. If you can get rid of this contingency, your offer will be much stronger, but this isn’t an option for everyone. Talk to your lender and your agent about what makes sense for your situation. Which contingencies you decide to waive or edit can be a complicated topic, but it can also be the difference between your offer being accepted or not. If you have any questions, please call or email me or my team. We are always willing to help.
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