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We’ve already mentioned a few times in this blog the super fierce competition among Florida property buyers. It’s called the “Bidding War”. Mainly in the residential housing segment, the competition is so high that the same property can have more than 5 proposals at the same time. Some buyers already offer prices 10% or 20% higher than those advertised in the ad right from the start, to try to secure the property right away. The situation has become even more critical with the entry of investors in the game. This type of competition, despite keeping the market heated and stimulating the local economy, brings uncertainty to the market, especially for the so-called “First Home Buyers” (buyers of the first home for housing). Fortunately, it looks like this competition is “cooling off”.
Bidding War drops to 59.5% in November
According to the real estate portal Redfin, 59.5% of bids carried out by brokers of the portal itself suffered some kind of competition for the month of November. This percentage, although high, is the lowest in 11 months. In October this year this same indicator was almost 62%. At the peak of the pandemic, in April, the percentage hit almost 75%.
A bid is considered part of a “Bidding War” when a broker faces at least one bid from another broker for the same property he is brokering.
Florida real estate market remains buoyant due to low US interest rates and historically low inventory. Demand was also pushed up by new residents from other states.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida. If you want to learn more about opportunities in Luxury Real Estate, Miami or the Tampa Bay area, contact me right now and chat with me on WhatsApp : +1 308 318-6968 (Heloisa Arazi).