So is the South Florida Real Estate Market Heading for another Crash, Well stay tuned because I’m going to share information that your not hearing from other real state investors and realtors.

So one of the most common questions I get today is Lee do you think the real estate market is going to crash in south Florida

And if your like me pursuing around YouTube , all you hear is realtors and investors talking about the south Florida market crashing.

The biggest two concerns is that there are a high number of mortgage delinquencies, And there are a high number of forbearances

Now true, at the end of summer 90 day delinquencies where the highest rate since 2010, but this is improving dramatically, especially in states like Florida where we are completely open for business.

As far as forbearances, eventually these are going to end and we could see more inventory hit the market but if you look at the market right now we are in a major home shortage so those would get chewed up quick and I would say you would not cause  many foreclosures. 

You could sell a doghouse and have bidding wars on it in this market

Another index many realtors and investors look at is the  Fannie mae Home Purchase index,  Which say’s Consumer Confidence in the Housing Market is falling.

This is no surprise to me because I believe that there is reason for concern.  I believe its tied to two things.

Number 1 Covid, no one knows when this nightmare will end,  I cant stand these mask much longer

But the second one even a bigger concern buy most people I talk too, Is this another 2008 bubble, which we will get into in a minute, so stay with me.

But even with consumer confidence falling the housing market in South Florida dose not not show it.

The average supply of homes in south Florida is about 2 months.  Meaning if no more homes come on the market  in 2 months there will be no more homes to buy. 

These are extremely low levels and make it very difficult to get your offer accepted if you are a buyer. If you are a seller, Its great because you can sell your home for whatever terms you choose.

So is this just another 2008 bubble.  I get this almost every week.  I also believe its why many buyers are sitting on the sidelines waiting to buy

but I believe that is going to cost many of them the ability to ever buy in the areas they want or end up paying way more than they anticipated.

So, the cause of the 2008 crash? 

This is an Easy question to answer, there is tons of research and even movies on this subject. 

The 2008 crash was directly tied to the amount of subprime mortgages, deregulations of banks and the ridiculous loans that were made, like interest only loans, balloon mortgages and no income verification loans.  Which where as high as 40% in some markets.

This subject is close to my heart because I have seen so many of my clients and friends who were devastated financially because of it.   

The good news is that these types of mortgages are long gone. Buyers now have strict income verification and credit verification

Also, since the corona virus hit, these loan verification process has become even more stricter. So, the long and short of it is that there are no bad loans being made. 

Buyer since the crash have been buying FHA VA or Conventional with 15 or 30 year fixed rate mortgages. 

And with rates at all-time lows, homeowners have been able to refinance and save 100’s on their monthly mortgage rates and many have pulled cash out of their home so they have savings in the bank,

So another concern you will hear on the street is the Fed printing all this money and it’s going to cause inflation, this is correct.

So, what is the result of this on the housing market in Florida? It could slow down because rates will go up and we could see more inventory on the market. 

But as far as the market crashing, consensus on the street is that this would just stall prices Especially in States like Florida and Texas that are seeing record relocations.

So what you may not know about me is how I became a realtor,

I was brought into the business through my partner and real estate investor Jim Pikis. 

He bought and sold around 100 homes per year till about 6 years ago when the market began to tighten up and foreclosures began to disappear. 

That’s when I started our real estate team.  He taught me everything I know about real estate investing and reading the market.

But to be honest in March, I would have never predicted the market in South Florida explode after corona virus.  I thought we would see foreclosures and short sales everywhere. 

But with the federal government jumping in and pouring money into states,

The fed lowering interest rates to all time lows, and

mortgage companies giving forbearances to homeowners so that they would not see a flood of foreclosures,

The market has gown like we have never seen it before.

And with other factors like the mass exodus of homeowners and companies leaving the north east and the west coast coming to escape lock downs and high taxes, it has compounded the housing shortage in Florida

So, to see where we are heading for 2021 Let’s just follow the money. 

The Florida Realtors Association data shows single family homes up 21% Condos and Townhomes up almost 30%

1000 Americans move to Florida every day as families leave New York, New Jersey and Connecticut

And this is causing home sales to almost double in some parts of Florida since the Pandemic started.

So many people have left New York that they could lose a concretional seat.

Then you have Goldman Sacks, the Wall Street Icon which employs almost 41,000 people looking at moving operation to Palm Beach County, Ft Lauderdale and Miami, 

Already, Elliott Management Corp a 41-billion-dollar Hedge Fund is Moving its base to West Palm Beach from Manhattan.  A

And other investing powerhouses like Blackstone Group and Citadel have been increasing their presence in the state. 

Just go and try to buy ocean front property and see how fast its selling.

Then you have a slew of prominent Tech Companies Announcing they are relocating to Miami. They mayor there is planning to build a new silicone valley. 

So, what’s all this mean for you the buyer and seller

Well if you’re a seller, the balls in your court.  Your home is going to keep rising in price till incomes can no longer sustain the prices or interest rates begin to rise.  

But if you’re a buyer sitting on the sidelines waiting prices to drop or you’re a renter waiting for summer till your lease is up to buy,

then your probable going to be very  disappointed by the what you have to pay for a home or even worse your priced out of the market

Which I have seen over and over again since May.

And If you believe the market is hot now, just wait till summer which is traditionally the buying season for south Florida. 

Right now, you can guarantee if you find a house you want to buy, and you put in a offer, you will be going up against multiple offers. 

But if you wait till summer its going to be much worse. 

Either way, whether your using me or someone else

you better have a realtor that know the market, and has good relationships with other realtors,

because if you get a realtor without the skills to negotiate a deal and find off market properties you are going to be missing home after home.

Which brings me to a realtor pro tip, if your lease is not up till summer there are ways, we can help you get out of it. 

We have done it many times with clients without hurting their credit and upsetting their landlords.

So that’s it, Lee Brickey’s predictions of the South Florida Market in 2021. 

And If you are looking to buy or sell and want a realtor that thinks outside the box and treats their clients like their best friend putting their clients’ needs over anything else.

Give me a call send me a text or an email. 

Also you can hit the link in the description bellow and request our buyers guide that will save you 1000’s on your next purchase

and our website link is there also , so you can search homes and see all the information realtors do,

 Unlike Zillow where you’re not seeing if homes are still on the market or under contract wasting valuable time.

And if your one of these people who like to read for themselves, send me an email and I will send you all the links where I did the research for this video.

Also I would love to know what you thought of my predictions, So leave me a comment and let me know and hit the thumbs up if you liked it

And if this is the first time to our site, don’t forget to slap that subscribe button and ring that notification bell so you don’t miss any of our real estate tips and tours.  We have new video’s every week. 

And check out our next video on how to get your offer excepted.

Ill see you next time.