South Florida home prices gained for a fifth consecutive month by more than 20 percent in April as bidding wars break out over a shrinking pool of inventory, the Sun-Sentinel reported.
In six months, the region’s housing market has done a complete turn-around after six years in decline.
Palm Beach County’s median home price rose to $265,000 last month, a 26 percent increase from a year ago, the Sentinel reported, citing figures from the Realtors Association of the Palm Beaches. Broward County’s median home price increased by 22 percent to $250,000, according to the Greater Fort Lauderdale Realtors.
South Florida is a seller’s market, preferring cash offers and asking that buyers shorten inspection periods and waive appraisal contingencies, the newspaper said.
As prices rise and the housing shortage worsens, buyers are offering premiums on homes’ appraised value.
“People tend not to be rational in these frenzies,” Stan Humphries, chief economist for real estate website Zillow.com, told the paper. “They may buy at whatever the cost.” [Sun-Sentinel] –Emily Schmall