Southwest Ranches is a quiet, picturesque village in southern Florida. It is a small, affluent community where you are likelier to see residents on horseback than on golf carts. People are drawn to the area for its small-town charm and wide open spaces.
Are you looking for Southwest Ranches homes for sale? If so, you are in luck. Teresa Santana with The Santana Group Real Estate team has compiled the latest housing market information. Read on to learn what it takes to succeed as a buyer or seller in the local real estate market.
Forecast for Southwest Ranches market
Home values are rising
Despite the market slowing down, the median sales price for homes in May 2023 in Southwest Ranches was comfortably above $2 million. Home prices have increased, and the average sale time for properties in Southwest Ranches is just 24 days. Homes are selling faster than any month since August 2021. The bright spot for buyers is that although sales prices have increased, last month, homes sold below the asking price.
Interest rates drop slightly
Interest rates have fluctuated between 6% and 7% but recently dropped slightly. As of April 2023, the average percentage rate (APR) nationally for a 30-year fixed-rate mortgage was 6.85%.
Things may be looking up for investors
From 2017 to 2021, 96.6% of the homes in Southwest Ranches were owner-occupied. Therefore, 3.4% of homes were not occupied by the owner. This does not mean all those homes were rental units, but some likely were. The median gross rent for the area during that period was $2,621. The inventory of houses for sale in Southwest Ranches is low, and the price point is high, but people are attracted to the area, so there may be rental potential.
There has been a slight dip in new residents
In the last decade, Southwest Ranches had a slight increase and then a slight decrease in population. It went from 7,345 people in 2010 to 7,604 people in 2020 and then dipped in 2021 to 7,502 people.
2023 Broward County housing trends
Broward County, as a whole, is in a seller’s market. Median home prices are up substantially year-over-year; meanwhile, a recent uptick in sales volume bodes well for buyers as we move through the busy season in 2023. Houses are lingering on the market for several weeks, another development that would favor buyers (should it continue).
A local agent's insight will prove invaluable if you’re set on buying a home in Southwest Ranches. Broward County homes sell for lower prices than neighboring counties, but Southwest Ranches is a notable exception. According to the Santana Group, over a third of the homes available in Southwest Ranches are listed above $5 million. Different rules apply when you’re home seeking at the top of the market.
How COVID-19 stoked the Southwest Ranches real estate market
In Florida, the real estate market flourished during the recent pandemic. Some of that had to do with low-interest rates, but much of it was due to people realizing that if they could work from home, they might as well be in a state with warmer temperatures. The prices of homes skyrocketed because of the demand, but the supply was low, which created bidding wars.
Southwest Ranches foreclosures
Foreclosures are on the rise nationally. The current economic climate may have much to do with this, but some would have been in foreclosure years ago, except the process was suspended during the pandemic. HUD listed their current amount of foreclosures in Southwest Ranches as 14. Of that number, half were listed as preforeclosure and half as bankruptcy.
Tips for buying and selling in any market
Between the housing market and interest rates, it is a roller coaster ride for buyers and sellers. No one knows when the market will change in their favor. The following tips apply regardless of the market.
Get your finances in order
Determine your credit score and fix it if necessary. In most cases, you will need a down payment. Check your debt-to-income (DTI) ratio. Search for a DTI calculator online to determine the ratio. Lenders want a DTI under 43%.
Prices and the market
Housing prices may not accurately reflect the current market. Prices may lower, but they are unlikely to return to what they were before 2020. If you are buying property, be prepared to pay more. If you sell property, be prepared to negotiate or have the property sit longer.
Demand and inventory
The demand for housing still exists, but the inventory is tight. This is partially due to higher interest rates. The rates may continue to hover between 6% and 7%. People downsizing can still do well in this environment. They will face the same interest rates, but downsizing should save them in price, and they may be able to refinance when rates improve.
Real estate is local
The mantra that all real estate is local rings true. Just because the housing market is cooling in some areas does not mean it is in others. Research the area and the neighborhoods you are interested in and talk to a local real estate professional. They have access to databases that the average person does not.
Negotiation is key
The high prices, low inventory, and slower movement in the market illustrate a disconnect between what buyers and sellers think properties are worth. This mismatch view should keep houses in the market longer and create opportunities for savvy buyers to negotiate.
The Santana Group is on your side
Southwest Ranches is a gorgeous, rural area tucked away from the hustle and bustle of city life. If you want to know more about Southwest Ranches, contact local expert Teresa Santana. Experts in South Florida real estate, Teresa and her award-winning team have helped buyers and sellers in the Weston and Southwest Ranches real estate market for years. Contact the Santana Group today.
*Header photo courtesy of Shutterstock
