Is the real estate market shifting? The easy answer is ALWAYS! South Florida has enjoyed a strong seller’s market for awhile, and this is expected to continue… for now. What can cause a shift?
Interest rates are expected to 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 rise, some buyers will cool off. For perspective, the average 30 year mortgage rate is 4.3% in early March 2017, compared to 3.73% a year earlier.
New construction is picking up.
More homes is better for buyers. New homes are competition for homeowners looking to sell their home. Construction is definitely heating up all over Florida, but is nowhere near the craziness of the pre-2008 era with new developments popping up in every spare lot.
South Florida is always a hot spot for home buying.
As Baby Boomers continue to retire and crazy March snow continues to aggravate, people will keep moving to Florida and buying real estate. This means that no matter how much new construction or which way the interest rates blow, Florida homes will stay in demand. Contact Team Scherer for more info on how the neighborhood that you want to sell or buy into is doing.