What you need to know about the recent changes in the market.
Now that July has ended, it’s incredible to look back and see how the real estate market has changed this year. Interest rates for 30-year fixed loans spiked from 3% to around 6%, and now they’ve floated back down to 5%. It’s even possible to get rates below 5% for VA and FHA loans. These lower rates are helping to drive up buyer demand once again.
Inventory has also crept up to around a two-month supply. We’re still in a seller’s market; a balanced market has about five months of supply, so we still have an inventory shortage, which won’t change anytime soon. That shortage is propping up home prices, especially in the Tampa Bay market. A recent article from Fortune Magazine said that the likelihood of home prices going down in Florida is very low.
We’ve also had negative GDP (gross domestic product) growth this year, which means that once the Federal Reserve gets inflation under control, we’ll likely see mortgage rates decline again. That will boost the market further by increasing buyers’ purchasing power.
Right now, we’re in a sweet spot of the market where it’s possible to sell for top dollar in a reasonable amount of time and then buy a home without much competition. If you have any questions about what’s happening or would like to learn more about your specific market area, give me a call or send me an email. I’d love to help you.