I've been seeing and hearing conflicting information out there about the nature of the current Real Estate market in Hernando and surrounding counties. There is fear that there will be a crash, concerns about the increases in interest rates, and uncertainty from buyers and sellers on how to manage these changes. Here are my thoughts on the current real estate market, and what I feel the market will mean for you over the next few months.
- While interest rates have risen over the last few months, we are still experiencing historically low rates overall. Just ask our baby boomer generation and they will tell you that when they were buying their first homes, they were paying upwards of 12-18% in interest! While the current 5.75-6% rates are up significantly from what we have been used to over the last two years, we are in still in great shape!
- According to a list compiled by Realtor.com, " The Tampa area was one of the top 10 housing markets in America going into 2022. Home sales across this market are forecast to grow by 11.6 percent year over year in 2022, which is nearly two times the national home sales growth projection. That number is continuing to grow as individuals who used to be forced to live where they worked, now have the option to work from home anywhere." I'm not surprised by this are you? Why not live and work where you vacation? Florida is a destination location surrounded by beautiful beaches, nature, great weather, and several championship teams to root for!
- So, what does all of this mean for buyers looking to move to Florida? With the interest rate increases, it has caused a slowdown in demand which is allowing for a more balanced market for buyers. You are not going to have to put in offers thousands over asking, waiving appraisal/inspection contingencies, or getting into a huge bidding war in hopes of getting into a home you love! Now you can potentially negotiate a bit on the price, negotiate on repairs, or even ask for a percentage or two to help on your closing costs!
- What about all the sellers out there? You are still going to be walking away with a significant amount from the equity you earned over the last two years. Even with home prices dropping a bit, they are not going to fall below the amount earned. Be patient. Homes are selling in weeks instead of days, but they are selling. Trust your realtor and price your home correctly, be willing to negotiate on terms and repairs, and you will ensure you're going to walk away with what you want for your house, within reason.
This is a great time to be a seller and buyer with a more even playing field for everyone. This is what you call a "healthy market" in my opinion. If you would like to discuss my thoughts in more depth, and/or have questions about your home, call me anytime! I'm your local real estate expert and am always here to help!
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