Law Office of Ryan S. Shipp, PLLC

Low supply pushing housing prices up as demand rises

The real estate in Florida has enticed people to the warm climate for years. However, buyer demand continues to outstrip the supply of homes for sale. A nationwide housing market analysis by CoreLogic shows that prices are rising because of the tight inventory. According to the National Association of Realtors, home prices were 6.7 percent higher compared to last summer while the number of property listings retreated by 9 percent. The association's chief economist said that housing starts were weak and that investors were showing little desire to sell.

This situation prompted CoreLogic to designate 46 percent of the top 50 markets in the country as overvalued. This classification emerges when home prices exceed by 10 percent a value level that can be maintained for the long term.

Although buyer demand has pushed prices up in many locations, a chief economist at Redfin expected the trend to slow down in the near future. As prices rise, buyers have become more reluctant to make a purchase. Low mortgage interest rates appear no longer able to make high prices easier to accept. One real estate brokerage experienced a 35 percent increase in home tours in July 2017 over the same month the previous summer, but offers fell by 11 percent.

During a real estate transaction, the parties have many variables to consider before committing to a deal. A person involved in either buying or selling a property might need the advice of an attorney familiar with residential real estate. From reviewing documents at a closing to litigating escrow or title disputes, a lawyer could inform a client about rights and develop a strategy to pursue specific goals. An attorney could manage negotiations, draft purchase agreements or file court papers when a lawsuit becomes necessary.

No Comments

Leave a comment
Comment Information

Law Office of Ryan S. Shipp, PLLC | 814 W. Lantana Rd., Suite 1 | Lantana, Florida 33462 | Phone: (561) 699-0399 | Map & Directions