There’s a change in trajectory happening within the last couple of months in the South Florida Housing Market. With Florida becoming one of the main migration states both for businesses and families alike, the demand for housing has been growing within the past few years. This along with the increase in inflation has led to a surge in demand for housing in Florida and the price of residential properties going through the roof, making South Florida one of the most competitive housing market in the country. Many long-time homeowners, more specifically the 55+ community, have already noticed and jumped on this trend and have sold their properties while the getting is still good and moved to a quieter and more affordable area either to the northern part of Florida or even out-of-state. With the continuing rise of the housing market, many have homeowners have started wondering and brooding over some questions like “will the market crash soon?” or “how long will we keep this up?”
Experts have been reviewing data from April and they suspect that the market is slowly entering into a “cooling mode”. Fewer buyers are scheduling tours, 15% of of home sellers have started cutting their asking price. What is influencing this change if the demand for homes is still rising? In an attempt to cool down one of the biggest drivers of the housing market surge, the Federal Reserve has started putting pressure on mortgage rates. In December we were seeing mortgage rates as low as 3.11% but it has gone up to 5.27% as of last week which is the highest it has ever been since 2009. This causes the common home buyer to have fewer options and accessibility to homes. With the prices for homes continuing to rise and spiking mortgage rates, A 2% difference in a mortgage rate can raise monthly payments by hundreds of dollars, which many cannot afford.
In a report published last week by chief economist of Redfin, Daryl Fairweather wrote,
“Homebuyers continue to be squeezed in nearly every way possible, which is causing some to take a step back from the market”(.https://fortune.com/2021/11/29/housing-market-real-estate-predictions-2022-forecast/)
With many potential homebuyers waking up to the craze and noticing other options available that is more affordable and convenient for them, the housing market may start slowing down and correcting this trend very soon. Which means that if there was ever a time to sell your home for the highest possible amount, it’s now! As the old saying goes, “what goes up must come down” and the signs are pointing to just that. If you have been thinking of selling your home lately and want to take advantage of the market as many other are, there’s no better time like now. Don’t wait too long and miss the opportunity!
Want to take advantage of the market and get an offer on your home? Visit our website today to get a cash offer today! https://www.homeinc.com/