Owning a home may be part of the "American dream," but it is important to buy and sell at the right times. A research group recently compared the sale price of almost 30,000 homes in South Florida in the second quarter to the price the homeowners paid at the time that they purchased the property. The profits noted did not include expenses related to renovations performed on the homes. The results were startling.
Those selling homes in Broward County and other South Florida counties have seen a 45 percent price gain on average from April through June. It is the greatest percentage raise in a decade and is quite a way above what the average is across the United States, which is only 26 percent.
Moreover, the report notes that individuals selling homes in South Florida remained in their homes for around 7.5 years, which is the longest stretch of time dating back to 2000. One professional states that this is because more suitable homes simply aren't available on the market. This shortage of desirable homes raises the prices of those currently on the market, which means more profits for those selling their homes.
Homeowners seeing the greatest returns mainly owned modest-sized houses for 20 or more years, or they were able to snatch a home at a great price back when the market collapsed. However, those who purchased their home at the pinnacle of the housing boom back in the mid 2000's are not seeing very large returns, as many of those homes are no longer worth as much as they were purchased for.
In the end, however, it seems like a good time for those in South Florida who have considered selling their home to make their move. That being said, before plunging into the home-selling process, it may behoove homeowners to first consult with an attorney experienced in residential real estate transactions to ensure that the homeowner's rights are protected.
Source: Sun Sentinel, "South Florida home sellers enjoy hefty profits, report says," Paul Owers, July 27, 2017