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 - 10 hours online
$399,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
940
SQFT
1421 S Ocean Blvd #103
Pompano Beach, FL 33062
Rio Espana Condo Subdivision
New Listing - yesterday
$162,900
Condo For Sale
Coming Soon
1
BED
2
TOTAL BATHS
900
SQFT
Cypress Bend #713
2314 S Cypress Bend Dr
Pompano Beach, FL 33069
New Listing - yesterday
$164,900
Condo For Sale
Active
1
BED
2
TOTAL BATHS
900
SQFT
Cypress Bend #113
2314 S Cypress Bend Dr
Pompano Beach, FL 33069
New Listing - yesterday
$499,990
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,256
SQFT
299 N Riverside Dr #PH04
Pompano Beach, FL 33062
Seville House Condo Apts Subdivision
New Listing - yesterday
$4,895,000
Townhouse For Sale
Coming Soon
5
BEDS
9
TOTAL BATHS
7,276
SQFT
1019 S Riverside Drive
Pompano Beach, FL 33062
Bermuda Isles Subdivision
New Listing - 2 days online
$281,556
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
980
SQFT
Sa Haven #437
2731 NE 14th Street Cswy
Pompano Beach, FL 33062
New Listing - 3 days online
$549,500
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,070
SQFT
Waterford Point #PH21
801 S Federal Hwy
Pompano Beach, FL 33062
New Listing - 3 days online
$289,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,260
SQFT
Cypress Bend #404
2334 S Cypress Bend Dr
Pompano Beach, FL 33069
New Listing - 3 days online
$249,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,265
SQFT
Palm Aire #205
3061 N Course Dr
Pompano Beach, FL 33069
New Listing - 3 days online
$300,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,200
SQFT
Palm Aire #904
3499 Oaks Way
Pompano Beach, FL 33069
New Listing - 3 days online
$729,800
Townhouse For Sale
Active
3
BEDS
3
TOTAL BATHS
2,606
SQFT
Koi Residences & Marina #113
113 SE 1st Cir
Pompano Beach, FL 33060
New Listing - 4 days online
$300,000
Condo For Sale
Coming Soon
2
BEDS
2
TOTAL BATHS
1,120
SQFT
Breezes At Palm Aire #201
2837 N Course Dr
Pompano Beach, FL 33069
New Listing - 5 days online
$599,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,490
SQFT
Voyager Condominium #507
2900 NE 14th Street Cswy
Pompano Beach, FL 33062
New Listing - 5 days online
$399,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
910
SQFT
Tiffany Gardens West #713
1630 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - 5 days online
$268,000
Condo For Sale
Coming Soon
2
BEDS
2
TOTAL BATHS
1,280
SQFT
Cypress Bend #502
2205 S Cypress Bend Dr
Pompano Beach, FL 33069
New Listing - 5 days online
$599,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,256
SQFT
Seville House Condo #PH-3
299 N Riverside Dr
Pompano Beach, FL 33062
New Listing - 5 days online
$489,000
Condo For Sale
Active
1
BED
2
TOTAL BATHS
690
SQFT
2201 SE 9th St #106
Pompano Beach, FL 33062
Santa Barbara Gardens Con Subdivision
New Listing - 5 days online
$310,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,100
SQFT
2671 S Course Dr #406
Pompano Beach, FL 33069
Palm-Aire Country Club Co Subdivision
New Listing - 5 days online
$550,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
990
SQFT
Pompano Yacht&Beach Club #601
Address Withheld
Pompano Beach, FL 33062
New Listing - 6 days online
$399,000
Condo For Sale
Active
2
BEDS
1
TOTAL BATH
788
SQFT
Santa Barbara Shores #4
851 SE 22nd Ave
Pompano Beach, FL 33062
New Listing - 6 days online
$575,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,100
SQFT
Silver Thatch #1705
531 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - a week online
$299,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
911
SQFT
Island Club #816
777 S Federal Hwy
Pompano Beach, FL 33062
New Listing - a week online
$320,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,146
SQFT
3500 Oaks Clubhouse Dr #305
Pompano Beach, FL 33069
Royal Point At Palm Aire Subdivision
New Listing - a week online
$275,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,065
SQFT
1340 NE 28th Ave #243
Pompano Beach, FL 33062
Marine Colony Condo Subdivision
New Listing - a week online
$415,000
Condo For Sale
Active
1
BED
2
TOTAL BATHS
890
SQFT
Ocean Place Condominiums #15B
1900 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - a week online
$579,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,520
SQFT
Pompano Aegean #510
1010 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - a week online
$789,000
Condo For Sale
Active
3
BEDS
3
TOTAL BATHS
2,430
SQFT
Sea Monarch #903
111 N Pompano Beach Blvd
Pompano Beach, FL 33062
New Listing - a week online
$460,000
Townhouse For Sale
Active
3
BEDS
3
TOTAL BATHS
1,420
SQFT
1055 NW 33rd Mnr #1055
Pompano Beach, FL 33064
New Covenant Church Plat Subdivision
New Listing - a week online
$699,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,100
SQFT
The Pompano Aegean #1411
1010 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - 2 weeks online
$699,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,270
SQFT
Seacrest Towers #1001
1609 N Riverside Dr
Pompano Beach, FL 33062
New Listing - 2 weeks online
$335,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
911
SQFT
Island Club #PH 1C
777 S Federal Hwy
Pompano Beach, FL 33062
New Listing - 2 weeks online
$225,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,100
SQFT
2324 S Cypress Bend Dr #413
Pompano Beach, FL 33069
Cypress Bend 1-D Condo Subdivision
New Listing - 2 weeks online
$530,000
Condo For Sale
Coming Soon
3
BEDS
2
TOTAL BATHS
1,400
SQFT
Ocean Monarch #102
133 N Pompano Beach Blvd
Pompano Beach, FL 33062
New Listing - 2 weeks online
$725,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,400
SQFT
Atlantis #11K
1000 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - 2 weeks online
$449,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
Seacrest Towers Condo #703
1609 N. Riverside Dr.
Pompano Beach, FL 33062
New Listing - 2 weeks online
$319,000
Condo For Sale
Active
3
BEDS
2
TOTAL BATHS
1,390
SQFT
Palm Aire #112
3051 N Course Dr
Pompano Beach, FL 33069
Open House Sun, May 22, 4 PM UTC
$522,788
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,169
SQFT
Nobel Point #81
1100 SE 5th Ct
Pompano Beach, FL 33060
New Listing - 2 weeks online
$369,900
Condo For Sale
Active
3
BEDS
3
TOTAL BATHS
1,710
SQFT
Palm Aire Country Club #602
3095 N Course Dr
Pompano Beach, FL 33069
New Listing - 2 weeks online
$499,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,210
SQFT
Waterford Point #508
801 S Federal Hwy
Pompano Beach, FL 33062
New Listing - 2 weeks online
$275,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,200
SQFT
Cypress Bend Condo L #215B
2309 S Cypress Bend
Pompano Beach, FL 33069
New Listing - 2 weeks online
$549,999
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,230
SQFT
801 S Federal Hwy #109
Pompano Beach, FL 33062
Waterford Point Condo Subdivision
New Listing - 2 weeks online
$675,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
933
SQFT
Pompano Beach Club North #2003
101 Briny Ave
Pompano Beach, FL 33062
New Listing - 2 weeks online
$599,900
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
2900 NE 14th Street Cswy #206
Pompano Beach, FL 33062
Voyager Condo Subdivision
New Listing - 2 weeks online
$198,788
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
980
SQFT
Sea Haven Garden Aire Vil #924B
2731 NE 14th Street Cswy
Pompano Beach, FL 33062
New Listing - 2 weeks online
$250,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
980
SQFT
2731 NE 14th Street Cswy #807
Pompano Beach, FL 33062
Garden-Aire Village Sea H Subdivision
New Listing - 3 weeks online
$649,900
Townhouse For Sale
Active
3
BEDS
4
TOTAL BATHS
1,846
SQFT
Koi #524
524 SE 1st Cir
Pompano Beach, FL 33060
New Listing - 3 weeks online
$499,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
975
SQFT
Tiffany Gardens #104
1610 N Ocean Blvd
Pompano Beach, FL 33062
New Listing - 3 weeks online
$1,549,000
Condo For Sale
Active
3
BEDS
4
TOTAL BATHS
2,427
SQFT
1 N Ocean Blvd #207
Pompano Beach, FL 33062
Plaza At Oceanside (The) Subdivision
New Listing - 3 weeks online
$799,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,250
SQFT
Ocean Colony #10 K
1620 S Ocean Blvd
Pompano Beach, FL 33062
New Listing - 3 weeks online
$198,788
Condo For Sale
Active
1
BED
2
TOTAL BATHS
710
SQFT
Sea Haven Garden Aire Vil #838B
2731 NE 14th Street Cswy
Pompano Beach, FL 33062
New Listing - 3 weeks online
$279,500
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
982
SQFT
Cypress Club Condo #209
120 Cypress Club Dr
Pompano Beach, FL 33060
New Listing - 4 weeks online
$599,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,290
SQFT
328 N Ocean Blvd #405
Pompano Beach, FL 33062
Bermuda House Subdivision
Price Change - 2 weeks ago
$380,500
Condo For Sale
Active
3
BEDS
3
TOTAL BATHS
1,710
SQFT
Pacc # 53 #308
2900 N Course Dr
Pompano Beach, FL 33069
$298,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,029
SQFT
address withheld
Pompano Beach, FL 33062
Island Club 2 Condo Subdivision
$355,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
950
SQFT
address withheld
Pompano Beach, FL 33060
Pine Drive Manor Condo Subdivision
$195,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
980
SQFT
Sea Haven #421
2731 NE 14th St Cswy
Pompano Beach, FL 33062
$999,998
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,265
SQFT
Parliament House Condo #1001
405 N Ocean Blvd
Pompano Beach, FL 33062
$174,750
Condo For Sale
Active
1
BED
2
TOTAL BATHS
710
SQFT
Sea Haven #519
2731 NE 14th Street Cswy
Pompano Beach, FL 33062
$580,000
Condo For Sale
Active
3
BEDS
3
TOTAL BATHS
2,098
SQFT
address withheld
Pompano Beach, FL 33069
Palm-Aire C C 79 Condo Subdivision
Price Change - 3 weeks ago
$725,000
Condo For Sale
Active
2
BEDS
2
TOTAL BATHS
1,100
SQFT
Aegean #416
1010 S Ocean Blvd
Pompano Beach, FL 33062