According to a new report from realtor.com, rental prices are up 11.5% across the country. In the Miami and West Palm Beach area, rents increased 27% from the same time last year, and the wages are not keeping up.
Demand for every kind of housing in South Florida is extremely high.
It’s a matter of supply and demand, with more people moving from the northeast to the sunshine state.
"The supply is at the lowest it has been since the 1970s, which is crazy," said real estate expert Amy Ballon.
"In Miami you can walk outside, be outside and on top of that, no state income tax. And it was like a click that happened and we had began something we haven’t seen before which is a domestic migration," said Judy Zeder with Jills Zeder Group.
Experts say it’s a sellers market.
Another report from realtor.com shows, Miami-Dade County’s total home sales surged 142% from this time last year. On top of homes being sold in record time.
Real estate economist Ken H. Johnson said properties are being sold well above the listing price and low interest rates are fueling the trend.
"Most people are using fixed rate mortgages and going into a home somewhere at a three or low threes in terms of the interest rate on their mortgage. So this is a nice set up for them but price of homes continues to rise," said Johnson.
Johnson said home buyers shouldn’t be afraid to walk away from an overpriced property. Wait until the market settles.
"We’re recommending that people consider renting and re-investing, in other words that money you would've spent on housing as an owner, if you're renting right now even though it's high, you start re-investing. What you'll find in the long run, you'll come out just about the same as if you owned any random choice," said Johnson.
The economic expansion happening in Florida will continue to cause a demand for residential real estate. Therefore, experts believe demand to live in South Florida will remain strong in the new year.
