Southwest Florida is the hottest selling area of Florida. Buyers are still able to purchase although many have readjusted their plans due to new construction becoming attainable via lottery or the highest bidder, or an indefinite waiting list and a parking lot of other buyers to compete with. Many buyers now reconsider purchasing a resale home, or a change the original "want" list for their next home. Sellers have a prime opportunity to sell but also have to evaluate as to where will they move to. Many sellers are buyers, too, swimming in the same pool of competition, both in Florida and many top destinations nationwide. In addition, those who require financing are witnessing a slide upwards in interest rates, and time frames now have the additional factor of the inflation rate. The added concern is the destiny of the the dollar.
The question is this a good time to sell or buy? Is real estate still a wise investment? Below are a few expert predictions:
Experts Say Home Prices Will Continue to Appreciate
It’s clear that consumers are concerned about how quickly home values are rising. Many people fear the speed of appreciation may lead to a crash in prices later this year. In fact, Google reports that the search for “When is the housing market going to crash?” has actually spiked 2450% over the past month.
In addition, Jim Dalrymple II of Inman News notes
“One of the most noteworthy things that came up in Inman’s conversations with agents was that every single one said they’ve had conversations with clients about whether or not the market is heading into a bubble.”
To alleviate some of these concerns, let’s look at what several financial analysts are saying about the current residential real estate market. Within the last thirty days, four of the major financial services giants came to the same conclusion: the housing market is strong, and price appreciation will continue. Here are their statements on the issue:
“Strong demand for housing looks sustainable. Even before the pandemic, demographic tailwinds and historically-low mortgage rates had pushed demand to high levels. ... consumer surveys indicate that household buying intentions are now the highest in 20 years. … As a result, the model projects double-digit price gains both this year and next.”
“Homebuyers—interest rates are still historically low, though they are inching up. Housing prices have spiked during the last six-to-nine months, but we don’t expect them to fall soon, and we believe they are more likely to keep rising. If you are looking to purchase a new home, conditions now may be better than 12 months hence.”
“Unlike 15 years ago, the euphoria in today's home prices comes down to the simple logic of supply and demand. And we at Morgan Stanley conclude that this time the sector is on a sustainably, sturdy foundation . . . . This robust demand and highly challenged supply, along with tight mortgage lending standards, may continue to bode well for home prices. Higher interest rates and post pandemic moves could likely slow the pace of appreciation, but the upward trajectory remains very much on course.”
“There are reasons to believe that this is likely to be an unusually long and strong housing expansion. Demand is very strong because the biggest demographic cohort in history is moving through the household-formation and peak home-buying stages of its life cycle. Coronavirus-related preference changes have also sharply boosted home buying demand. At the same time, supply is unusually tight, with available homes for sale at record-low levels. Double-digit price gains are rationing the supply.”
If you’re concerned about making the decision to buy or sell right now, let’s connect to discuss what’s happening in our local market.
Everyone needs a "plan." Sellers may feel rushed to sell but this decision requires a razor sharp stategy on the BUY side as well as selling. Contact me so we can constuct your individual roadmap to success. 239-293-9434 www.maryhoresco.com