The doldrums of the real estate market are long past us. The sellers’ market is hot again. But can that shift? Of course. So when can we expect a shift to a buyers market? Look for these clues:
- Interest rates on the rise
If interest rates are expected to rise, as they may again, buyers will be motivated to snap up their dream home soon. Once rates do rise, some buyers will cool off. For perspective on the current market, the average 30-year mortgage rate is 4.11% in July 2017, compared to 3.44% a year earlier. Keep an eye on whether those rates start rising further.
- New homes being built again
More homes available for sale is good for buyers; not so much for sellers. Here in South Florida, new home construction is heating up – and those new homes are competition for the resale market. While today is nowhere near the craziness of the early 2000s era with new developments popping up in every spare lot, the builders are back and new homes are hitting the market in a steady stream.
- South Florida attractive as always!
As folks retire and crazy winters continue to aggravate, people will keep moving to Florida and buying real estate. Our area was hit hard by the economic downturn nearly 10 years ago, but now we are seeing great success again. No matter the construction or interest rates, Florida homes will always be in demand.
Contact Jackie Ellis for more info on how the neighborhood that you want to sell or buy into is doing.