We all keep hearing about the rising home prices, and it is true. The vast majority of markets across the country, especially here in South Florida, have seen massive jumps in listing prices in the past two years. It has become common for home prices to increase by 15%, 20%, or as here in the Keys 30% in one year. The struggles of the homebuyer have been well-documented. But the flip-side of this coin is that homeowners and those looking to sell are in an incredible position and poised to capitalize in a big way. Those looking to keep their properties are gaining property wealth from rising property values and those looking to sell are set to make maximum profits.
A recent Zillow report takes on the issue of rising home prices and home appreciation and analyzes several key factors to help us better understand this current real estate market from a different lens. Simply put, in the majority of the nation’s largest metropolitan areas people’s homes made more money than the homeowners who live in them in 2021. In fact, this was the case in 25 of the largest 38 areas, and in 11 cities the appreciation was more than $100,000!
Here in South Florida, this should come as no surprise. The Palm Beach-Fort Lauderdale-Miami area saw massive home appreciation in 2021. On average, the typical homeowner in this area saw home appreciation of $72,000. In the same metropolitan area, the average median salary was $40,000 in 2021. That means that homes earned nearly double the amount of the average homeowner!
While homeowners are sitting pretty in this market, renters are struggling and the gap between homeowners and renters is only growing. While homeowners in South Florida earned $72,000 in home appreciation in 2021, renters in South Florida saw annual rental prices increase by an average of $7,100 - the highest increase of anywhere in the country. Those saving to purchase a home, especially a first home, also faced increasing challenges as higher listing prices mean higher down payments as well.
Market insiders anticipate two to three years, potentially, for the market to stabilize and builders to catch up. If you are thinking of selling your Florida Keys home, the market is primed for you to make a great profit. This is a great time to capitalize on the market! At Broker’s Edge Realty we can help you understand what you can get for your Florida Keys home now and how we can get you the maximum sales price!