All across the country, the housing market has been on fire lately! It’s a seller’s market, so if you are looking to buy, it can be highly competitive. Between the low inventory of homes and cut-throat bidding wars, it has become challenging for buyers to get a house. Some spend months looking with no luck. Others put in offers on dozens of properties, only to turn up short. One option that some buyers are drifting toward is starting from scratch with new construction. Not everyone is willing to go through the new construction process. It can take up to a year for a new property to be built, and many people don’t have the time or patience to wait.
JMK Contractor is a new construction contractor in Miami. We have helped many people design and build the house of their dreams! Whether you are a Miami local or moving from out of town, here are some things to know about the Miami housing market and the new construction process.
Miami is a Desirable Place to Live!
First and foremost, Miami is an extremely desirable place to live. From the warm weather to the beautiful beaches, people are flocking to Miami so that they can call it home. College graduates, families, and retirees alike are all happy to establish roots in Miami. This city truly has something for everyone! Miami is a unique mix of downtown clubs, beaches, high-end stores, world-renowned restaurants and bars, eclectic downtown apartments, and beautiful residential homes. Since Miami is a hot destination, this only makes the real estate market more competitive! Due to the pandemic, many companies have moved toward a teleworking culture. Some companies, like Twitter, have told their employees they can work from home even when the pandemic is over. The work-from-home phenomenon has enabled many people to move far away from where their company is headquartered. This means Miami is an option for some buyers even if they “work” in a city far away!
It’s a Seller’s Market… Competition is Tough!
During the past year, the real estate market has favored sellers. Due to COVID-19, many people have been itching to move somewhere new. Some are tired of being cramped in a small apartment and are ready to buy a home. Others are looking to leave the crowded cities for suburban neighborhoods. Mortgage rates have also been at record lows. Homes are greatly appreciating, and for those who sell, they are often getting thousands above the asking price. This is excellent news if you are looking to sell your house, but it’s challenging for those looking to buy.
CBS Miami recently interviewed a Miami realtor to discuss the hot seller’s market. The agent discussed how crazy the market has gotten with a recent example. He shared that a house was listed, had over 80 showings, and then received half a dozen offers. Most of the offers were above the asking price. Remember the days when it was acceptable to offer below the asking price and then negotiate with the seller? Those days are long gone! In most situations, if a buyer offers under asking, they won’t even be considered. Also, buyers are playing into the competition by figuring out ways to make their offer stand out. Some buyers are forgoing home inspections, increasing the earnest money deposit, skipping appraisal contingencies, and more. While some of these moves seem risky, it’s so competitive that buyers often don’t know what else to do! Also, buyers typically have to make a move the day they view a home. No more mulling things over for several days or a week. If you aren’t ready to offer as soon as you see a home, it’s most likely going to be gone.
Inventory is Low… Be Prepared for a Bidding War
Part of the reason why competition is so tough is that home inventory across the country is low! So many people are looking to buy, and fewer people are looking to sell. According to Business Insider, home inventory hit a record low at the end of 2020. The low inventory is very challenging for those looking for homes in Miami. Many potential buyers spend hours searching for homes on websites like Zillow or Redfin, only to be disappointed. Few houses come on the market, and those that do sell quickly. If you do manage to get an offer in, be prepared for a bidding war. Houses are often selling above the asking price. Unfortunately, this means buyers have to look for homes under their budget to prepare for the bidding war.
Working with a New Construction Contractor is the Answer!
Even though the market is crazy, there is an answer: new construction. While this is not always true, the new construction route can often be less competitive. Between picking a plot of land and not getting a house right away due to months of construction, the process is not for everyone. However, if you want a unique, custom home and have the time and patience to wait, new construction might be right for you! Avoid the crazy bidding wars by building your own home. The first step is to find an experienced contractor you can trust, like JMK Contractor, who will be with you every step of the way.
Finding a New Construction Contractor in Miami
The housing market in Miami is red-hot! Locals are moving around within the city, and out-of-towners are moving to the beloved city. As spring heats up into the summer, the competition between home buyers is likely to get even more competitive. Forge your own real estate path by purchasing a plot of land and building a custom home. JMK Contractor is a new construction contractor in the Miami area who can help you create your dream home. For more information about our new construction services, contact us today.