Residential real estate market competitive in many states

Residential real estate market competitive in many states

Florida is one of several states where the housing market is filled with competition among buyers. It is a sign of the tremendous promise in the Sunshine State's residential real estate market. Sellers especially can stand to benefit most from the current housing market conditions.

Inventory continues to be fairly low in markets throughout the United States. This means that there is a higher chance that a seller will be able to unload his or her property; in fact, it is now common for a seller to receive several offers on a home the first day it is placed on the market. In addition, mortgage rates are still low, thus putting pressure on homebuyers to complete their residential real estate transactions before borrowing for a home becomes more costly.

Prices of homes are also going up in many parts of the country due to fierce competition. However, Florida is one part of the country where homebuyers may find more home listings and pay below the asking price, meaning that the residential market in Florida remains a positive one, not just for sellers but also for buyers. Many older buyers today are particularly interested in snatching up vacation properties as they search for pleasant areas in which to spend their retirement years. Vacation houses constituted more than 20 percent of home sales in 2014.

The current residential real estate boom in Florida and other parts of the country offers exciting opportunities for both buyers and sellers. However, a transaction could easily go belly-up if a person does not know how to navigate the complex steps of a real estate deal. An applied knowledge of real estate laws may help people to seamlessly complete their transactions and thus take advantage of today's flourishing market.

Source: businessinsider.com, "Bidding wars have broken out in hot US real-estate markets", May 12, 2015