Weary home shoppers are giving up, waiting for the market to cool
There is evidence that some homebuyers who are frustrated because they lost their homes on multiple listings are pausing their search in hopes that the housing market may slow down by the end of the year.
The insane market discourages buyers who have searched for a home for months only to be surpassed by other listings or who have difficulty finding a home in the market that suits their needs, estate agents told the South Florida Sun Sentinel.
The change has not yet dampened home sales; June was still a record month. But there are signs that some buyers have had enough.
A survey by the National Home Builder Association found that 20% of buyers wanted to wait at least a year to search if they couldn’t find a home in three months.
64 percent of people surveyed by Fannie Mae, the state mortgage company, in June said it was a bad time to buy a home, compared to 77% of people who said it was a good time to sell one.
“I see people get interested in the market and see a few houses and get out right away,” said Jeff Grant of ReMAX Real Estate in Palm Beach Gardens. “Sometimes they are looking for something specific and there is hardly anything on the market.”
His Palm Beach Gardens client Veronica McLeod has stopped looking for an apartment for the past four months after becoming increasingly frustrated with how quickly homes were disappearing from the market before she had a chance to look at them. Every time she came across a home that she liked online in the past year, other buyers have already made offers on it.
“It was crazy, I just couldn’t take this temperature,” she said. She is looking for a four bedroom, three bathroom home in Palm Beach Gardens to stay close to her family and hopes to find something sometime before the year is over.
Fort Lauderdale real estate agent Liz Dawes noted in July that more and more of her buyers were getting fed up with the housing market. It shows half of the houses open lately and about 30% of its buyers have decided to stop looking for a home in the past few weeks.
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“Buyers get tired after making multiple bids and not getting what they thought they were getting,” said Dawes.
Some buyers are so frustrated that they have left South Florida entirely, looking like a little dad in North Florida like the Cocoa Beach area, or getting a completely different home than originally planned.
Some get frustrated when sellers turn down their offers just to wait for a better one.
“A customer had a very strong offer, shortly before the demand and 50% cash. The seller said no because it was offered on the first day, ”said Ellen Taracido of Collection Realty in Fort Lauderdale. The customer ended up looking for homes in other areas of Florida.
Graham Davis, 32, and his wife, Sophie, 29, of Delray Beach stopped looking for a home a month ago after submitting three offers on some homes in east Boca Raton or Delray, often $ 50,000 above the offer price. They are trying to upgrade from their current home in Delray Beach and hope to resume the search later this year.
“We kind of expected that. We wanted to move last year, but we were careful with COVID, ”said Davis.
Real estate agents don’t think these are any signs of the market cooling off as properties are still being sold and demand is strong. Median prices hit new records in all three South Florida counties: $ 500,000 in Palm Beach County, $ 498,203 in Broward, and $ 500,000 in Miami-Dade.
For every buyer who leaves the market, twice as many come out eager to buy a home.
“We’re trying to collect inventory for our team’s buyers by sending direct mail postcards to the neighborhoods they’re looking in and trying to find something outside of the market that might be right for them,” said Brian Pearl of The Pearl Antonacci Group in Boca Raton.
Real estate agents predict a sustained cycle until more homes come back on the market, but when that happens remains to be seen. Grant noted that he’s been getting more calls lately from people wanting to sell their homes, a sign he hopes will have more deals on the way.
However, agents are also warning that new COVID restrictions in other states could drive more people to restrictive Florida, further fueling the sizzling housing market.
“The already hot market could become impossible for buyers,” said Lisa Treu of Treu Group Real Estate in Delray Beach.