Pompano Beach Real Estate values have appreciated by about 6%  in 2020, and are forecast to appreciate by almost another 6% in 2021 according to Zillow.
Some mighty think that we are in another Housing Bubble just like we saw in 2008.

However, we at Pompano Beach Realty believe the opposite to be true.
We outline 3 reasons why the Pompano Beach Real Estate market is totally different this time around.

1. The Housing supply is extremely limited

As you surely know, Real Estate Prices are determined by supply and demand. When there is a high supply of Pompano Beach Real Estate Sellers wanting to sell and there is low demand from buyers looking t purchase, Real Estate prices in Pompano Beach an elsewhere usually decrease.
And the opposite seems to hold true when there are few properties for sale and many buyers are looking to swoop up Real Estate in Pompano Beach,  home prices tend to increase.

Supply and demand in the Real Estate world are measured in months supply of inventory.
A “normal’ number of months of real estate inventory is around 6 months.
If the supply is longer than 6 months, usually indicates a buyers’ market in which home prices tend to decrease and again the opposite seems to hold true for a supply less than 6 months. This indicates a sellers market with rising property prices.

The 2 years leading up to the housing bubble of 2008 the housing inventory increased from around 5 months to 11 months!

According to the NAR (National Association of Realtors) unsold inventory is at an all time low of just under 2 months!

2. The current Housing demand is real!

Leading up to the housing bubble of 2008, the mortgage industry lent money to almost anyone that had a job, regardless of their income or debt to income ratio! Stated income loans made it possible. With these loans the borrower could “state” how much money he/she makes without verification by the lenders, hence the name stated income loans.
The higher the Mortgage Credit Availability Index (MCAI), published by the Mortgage Bankers Association, the simpler it is to obtain a mortgage.
And again the opposite holds true when the MCAI is lower, the harder it is a to obtain a mortgage.

Just before 2006, a little more than 2 years leading up to the 2008 housing crash, the MCAI was at around 400. Then in 2006 it hit an all time high of 868!
As we write this article, the MCAI is at only 122.5

In 2021 the Pompano Beach Real Estate demand is real thanks to the Millennials who are currently the largest generation in the USA.
As many Millennials have come of age to settle down and have families, a major driver for homeownership the demand for Real Estate is real!

This, together with historically low mortgage rates, drives the demand for homeownership even more, making the demand real.

3. As opposed to 2008, in 2020 homeowners have plenty of equity

Leading up to the 2008 housing crash, homeowners were using their homes like ATM machines, by doing cash-out-refinances leveraging the equity in their homes leaving many homeowners with little or no equity in their homes.
As the 2008 Real Estate Bubble began to burst and home prices started their decline many homeowners found themselves with a mortgage balance that was higher than the value of their homes.
Many homeowners started defaulting on their mortgage loans, the begin of a wave of foreclosures.

Fast-forward to 2017 – 2020 and the volume of those cash-out refinances were less than one third compared to what it was 3 years leading up to the 2008 real estate market crash.

In 2020 the levels of equity in owner occupied homes is unprecedented and over 38% of those own their homes without a mortgage loan.

What does that mean?

Since housing supply is historically low and demand remains high combined with the vast equity homeowners have in their homes, they should be able to weather a decline in home prices should there be one.

Is this like the 2008 crash?
Not at all, but exactly the opposite seems to hold true.

If you are looking to purchase a home or condo in Pompano Beach, call a friendly and knowledgeable Realtor at Pompano Beach Realty at 954-505-6000
Start your Pompano Beach Real Estate Search here.

This article is not investment advice and merely represents our opinion of the current Real Estate Market in Pompano Beach.
Please do your own research before investing or buying real estate.

Another interesting article:  Things to know about the as-is contract

Published: Feb 15, 2021

New Listing - 29 minutes online
$250,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
980
SQFT
Sea Haven #514
2731 NE 14th Street Cswy
Pompano Beach, FL 33062
New Listing - 13 hours online
$399,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,000
SQFT
Hillsboro Light Towers #605
2639 N Riverside Dr
Pompano Beach, FL 33062
New Listing - 21 hours online
$275,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
980
SQFT
Garden Aire Village #720
2731 NE 14th Street Cswy
Pompano Beach, FL 33062
New Listing - yesterday
$300,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,035
SQFT
777 S Federal Hwy #F102
Pompano Beach, FL 33062
Island Club 1 Condo Subdivision
New Listing - yesterday
$259,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,260
SQFT
Palm Aire Country Club #507
4030 W Palm Aire Dr
Pompano Beach, FL 33069
New Listing - yesterday
$525,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
975
SQFT
Tiffany Gardens #1110
1620 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - 3 days online
$249,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
938
SQFT
Pine Drive Waterfront Con #202
912 Pine Dr
Pompano Beach, FL 33060
New Listing - 3 days online
$224,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,100
SQFT
Palm Aire #902
3300 N Palm Aire Dr
Pompano Beach, FL 33069
New Listing - 4 days online
$159,000
Condo For Sale
Active
1
BED
1
TOTAL BATH
785
SQFT
1261 SW 46th Ave #2010
Pompano Beach, FL 33069
Royal Poinciana Condo Subdivision
New Listing - 5 days online
$285,000
Condo For Sale
Active
3
BEDS
3
TOTAL BATHS
1,620
SQFT
2900 N Course Dr #202
Pompano Beach, FL 33069
Palm-Aire C C Apts 53 Con Subdivision
New Listing - 5 days online
$399,900
Condo For Sale
Active Under Contract
2
BEDS
2
TOTAL BATHS
975
SQFT
Tiffany Gardens North #1207
1620 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - 5 days online
$475,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
990
SQFT
Pompano Yacht & Beach Clu #404
140 NE 28th Ave
Pompano Beach, FL 33062
New Listing - 5 days online
$219,000
Co-Op For Sale
Active Under Contract
1
BED
1
TOTAL BATH
850
SQFT
Marine Terrace #304
401 N Riverside Dr
Pompano Beach, FL 33062
New Listing - 7 days online
$549,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,140
SQFT
Admiralty Towers #403
750 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - a week online
$379,900
Condo For Sale
Active
2
BEDS
1
TOTAL BATH
788
SQFT
Santa Barbara Shores #2
851 SE 22nd Ave
Pompano Beach, FL 33062
New Listing - a week online
$499,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,100
SQFT
Pompano Agean #1016
1010 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - a week online
$114,900
Co-Op For Sale
Active
1
BED
1
TOTAL BATH
550
SQFT
Waterview Lodge Co Op #221
Address Withheld
Pompano Beach, FL 33060
New Listing - a week online
$229,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
982
SQFT
Cypress Club #607
160 Cypress Club Dr
Pompano Beach, FL 33060
New Listing - a week online
$350,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,000
SQFT
Hillsboro Light Towers #505
2639 N Riverside Dr
Pompano Beach, FL 33062
New Listing - a week online
$219,900
Co-Op For Sale
Active
2
BEDS
2
TOTAL BATHS
1,000
SQFT
Cypress Island #17
934 SE 9th Ave
Pompano Beach, FL 33060
New Listing - a week online
$239,900
Condo For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
1,590
SQFT
Palm Aire #410
3980 Oaks Clubhouse Dr
Pompano Beach, FL 33069
New Listing - a week online
$695,000
Condo For Sale
Active
3
BEDS
3
TOTAL BATHS
1,700
SQFT
111 N Pompano Beach Blvd #507
Pompano Beach, FL 33062
Sea Nonarch Subdivision
New Listing - 2 weeks online
$649,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,265
SQFT
Parliament House #602
405 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - 2 weeks online
$190,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
770
SQFT
Cypress Bend #302
2106 S Cypress Bend Dr
Pompano Beach, FL 33069
New Listing - 2 weeks online
$425,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,120
SQFT
Ocean Place #6N
1900 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - 2 weeks online
$449,000
Condo For Sale
Active Under Contract
2
BEDS
2
TOTAL BATHS
1,150
SQFT
Pompano Beach Club #1712
101 Briny Ave
Pompano Beach, FL 33062
New Listing - 2 weeks online
$179,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
770
SQFT
Cypress Bend #210
2104 S Cypress Bend Dr
Pompano Beach, FL 33069
New Listing - 2 weeks online
$124,900
Condo For Sale
Active
1
BED
2
TOTAL BATHS
710
SQFT
Garden Aire Sea Haven 2 #131B
2731 NE 14th St
Pompano Beach, FL 33062
New Listing - 2 weeks online
$188,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,100
SQFT
2316 S Cypress Bend Dr #217
Pompano Beach, FL 33069
Cypress Bend 1-B & 1-C Co Subdivision
New Listing - 2 weeks online
$150,000
Condo For Sale
Active
1
BED
2
TOTAL BATHS
960
SQFT
Palm Aire Cc 2 #604
3001 S Course Dr
Pompano Beach, FL 33069
New Listing - 2 weeks online
$195,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,150
SQFT
Palm Aire Cc #803
3051 N Course Dr
Pompano Beach, FL 33069
New Listing - 2 weeks online
$179,500
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
980
SQFT
Garden Aire Village #424
2731 NE 14th Street Cswy
Pompano Beach, FL 33062
New Listing - 2 weeks online
$264,900
Condo For Sale
Active Under Contract
2
BEDS
2
TOTAL BATHS
1,260
SQFT
Palm Aire Country Club #305
806 Cypress Blvd
Pompano Beach, FL 33069
New Listing - 2 weeks online
$208,300
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,054
SQFT
Palm Aire Country Club #706
3080 N Course Dr
Pompano Beach, FL 33069
New Listing - 2 weeks online
$146,000
Condo For Sale
Active Under Contract
1
BED
1
TOTAL BATH
785
SQFT
Royal Poinciana #2014
1261 SW 46th Ave
Pompano Beach, FL 33069
New Listing - 2 weeks online
$339,000
Condo For Sale
Active
1
BED
2
TOTAL BATHS
920
SQFT
Bay Yacht Club #602
740 S Federal Hwy
Pompano Beach, FL 33062
New Listing - 2 weeks online
$234,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,073
SQFT
1223 SW 46th Ave #103
Pompano Beach, FL 33069
Royal Poinciana Condo Subdivision
New Listing - 2 weeks online
$225,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,216
SQFT
4030 W Palm Aire Dr #104
Pompano Beach, FL 33069
Palm-Aire C C Apts 102 Co Subdivision
New Listing - 2 weeks online
$255,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,035
SQFT
Island Club #D202
777 S Federal Hwy
Pompano Beach, FL 33062
New Listing - 3 weeks online
$169,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,150
SQFT
Palm Aire #309
2801 N Palm Aire Dr
Pompano Beach, FL 33069
New Listing - 3 weeks online
$269,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,400
SQFT
Cypress Bend #403
2205 S Cypress Bend Dr
Pompano Beach, FL 33069
New Listing - 3 weeks online
$230,000
Condo For Sale
Active Under Contract
2
BEDS
2
TOTAL BATHS
1,400
SQFT
Cypress Bend Le Club #803
2205 S Cypress Bend Dr
Pompano Beach, FL 33069
New Listing - 3 weeks online
$298,000
Condo For Sale
Active Under Contract
3
BEDS
2
TOTAL BATHS
1,500
SQFT
No. 52 Palm Aire Country #501
3095 N Course Dr
Pompano Beach, FL 33069
New Listing - 3 weeks online
$765,000
Condo For Sale
Pending
2
BEDS
3
TOTAL BATHS
1,650
SQFT
1360 S Ocean Blvd #501
Pompano Beach, FL 33062
Renaissance of Pompano Be Subdivision
New Listing - 3 weeks online
$1,100,000
Condo For Sale
Active
2
BEDS
3
TOTAL BATHS
2,497
SQFT
Sonata Beach Club #904
801 Briny Ave
Pompano Beach, FL 33062
New Listing - 3 weeks online
$899,999
Condo For Sale
Active
2
BEDS
3
TOTAL BATHS
1,450
SQFT
Pompano Beach Club #PH18
111 Briny Ave
Pompano Beach, FL 33062
New Listing - 3 weeks online
$390,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,500
SQFT
1000 S Ocean Blvd #4H
Pompano Beach, FL 33062
Pompano Atlantis Ph 1 Subdivision
New Listing - 3 weeks online
$449,000
Condo For Sale
Active
1
BED
1
TOTAL BATH
740
SQFT
Tiffany Gardens East #403
1610 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - 3 weeks online
$129,999
Condo For Sale
Active
1
BED
1
TOTAL BATH
450
SQFT
199 E Mcnab Rd #207
Pompano Beach, FL 33060
Cypress Landing Condo Subdivision
New Listing - 3 weeks online
$589,000
Townhouse For Sale
Active
3
BEDS
4
TOTAL BATHS
1,961
SQFT
Fairview Pointe At Palm #652
652 W Palm Aire Dr
Pompano Beach, FL 33069
New Listing - 4 weeks online
$1,325,000
Condo For Sale
Active
2
BEDS
3
TOTAL BATHS
1,760
SQFT
Sabbia Beach #1201
730 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - 4 weeks online
$235,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
Cypress Bend #901
2217 Cypress Island Dr
Pompano Beach, FL 33069
New Listing - 4 weeks online
$750,000
Condo For Sale
Active
2
BEDS
3
TOTAL BATHS
1,970
SQFT
The Wittington #8C
1390 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - 4 weeks online
$675,000
Condo For Sale
Active
3
BEDS
3
TOTAL BATHS
2,316
SQFT
The Wittington Condo #3F
1390 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - 4 weeks online
$775,000
Condo For Sale
Active
3
BEDS
3
TOTAL BATHS
2,415
SQFT
Voyager Condo #1004
2900 NE 14th Street Cswy
Pompano Beach, FL 33062
New Listing - 4 weeks online
$435,000
Co-Op For Sale
Active
2
BEDS
2
TOTAL BATHS
950
SQFT
Silver Shores #5
3216 SE 12th St
Pompano Beach, FL 33062
New Listing - 4 weeks online
$140,000
Condo For Sale
Active
1
BED
2
TOTAL BATHS
960
SQFT
Palm Aire Country Club #306
2801 N Palm Aire Dr
Pompano Beach, FL 33069
New Listing - 4 weeks online
$459,909
Condo For Sale
Active
4
BEDS
4
TOTAL BATHS
2,523
SQFT
4103 Carriage Dr #H3
Pompano Beach, FL 33069
Misty Oak Villas At Palm- Subdivision
New Listing - 4 weeks online
$445,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,400
SQFT
Pompano Atlantis #15C
1000 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - 4 weeks online
$269,900
Condo For Sale
Active
3
BEDS
2
TOTAL BATHS
1,444
SQFT
address withheld
Pompano Beach, FL 33069
Palm-Aire C C Fairways Ap Subdivision