South Florida property values are seeing ‘incredible’ growth with hot housing market. The housing market in South Florida has seen an increase of values close to 2.8%. Property appraisers anticipate the residential values to continue increasing in 2021 in both single-family homes, townhomes, and condos.
In Broward County, home values rose 4.3% in Palm Beach County’s early projections show values have increased at least 5% since last year, said Tim Wilmath, chief appraiser, through his spokeswoman.
Why is there a hot housing market?
With more people working from home and reconsidering where they should live during the pandemic, many out-of-towners are scooping up homes across the region. Some of the growth is spurred by a “significant” number of newcomers who’ve moved to South Florida, Kiar said.
That’s for homes but not necessarily businesses, though.
Some offices are empty because people have been working from home. “We know retail took a big hit this year,” as people turned to online shopping, Barringer said. And there have been gyms that closed due to restrictions and those buildings are now empty.
Buying pricier homes
Homebuyers have moved fast to buy residences in the past year, benefiting from historically low-interest rates for mortgages.
As interest rates went down, it allowed people taking out a mortgage to buy a more expensive house. Craig Kirsner, a Coconut Creek-based retirement planner, said the government has been keeping interest rates “artificially low” since 2009, and home prices have continued to climb. Homebuyers saw home prices go beyond 10% or more across South Florida during the first year of the COVID-19 pandemic.
“There’s a direct correlation between low-interest rates and high real estate prices,” he said. “It means everybody can buy a more expensive house.”
But an expected influx of foreclosures could eventually change the landscape. Once interest rates go up, demand will become lower and people will need to pay a higher mortgage for the same priced house, said Lauren Einhorn, a Fort Lauderdale real estate attorney. “People will either be stuck in their houses or get out and take a loss,” she said.
In February, the Biden administration said just over 10 million homeowners are behind on mortgage payments, and so to provide pandemic-related relief he extended the foreclosure moratorium for homeowners through June 30, among other efforts.
“These critical protections were due to expire in March, leaving many at risk of falling further into debt and losing their homes,” the White House said in a statement