Monday, September 22, 2014

Miami Home Prices...UP!

The Miami real estate market is the strongest it has been in several years. Although home prices have risen, they are considerably low when compared to the boom years. Low inventory and low interest rate continues to put upward pressure on home prices. This trend will likely continue through the rest of the year and beginning of 2015.

Although, new condo inventory is up prices are rising as well, furthermore indicating that the Miami real estate market is getting stronger. 

Tuesday, September 16, 2014

Appraisal Woes!

The Miami real estate market continues to be very HOT, particularly for home Sellers. Inventory is at an all-time low. This condition is driving prices higher, but in many cases appraisers don't agree and properties are not appraising for the sale price preventing the sale from closing.
This is not quite how this is supposed to work. Yes, lenders have the right to establish a fair market value for the property they will hold as collateral, however, market value should be set by supply and demand and the value Buyers' are willing to pay and can afford, not just on a four month sales trend.
The lack of properties appraising or lack of financing for certain properties may be the reason why more Buyers are choosing to pay cash and bypassing the lender all together. Note; developers in South Florida have been quite successful selling out hundreds of units to cash Buyers.
Markets change all the time. Home prices are recovering from a down market, but prices are not at the level they need to be to strike a natural balance between supply and demand. Unfortunately, as long as appraisal values continue to idle on the conservative side, Sellers, having to sell, will have to price their homes according to what the appraisers believes home values should be and not what the Buyer may be willing to pay.