BIDDING WARS

Since the initial phase of the pandemic, along with the federal government holding onto low interest rate's in the 2-3% range drove the housing market into a fierce buying frenzy that drove home prices up nationwide. Along with this happening created a bidding war along with very low housing inventory. This consisted of first time buyer's hit very hard and generally could not buy a home because many were out bid by the cash buyer's. This deeply impacted almost 50% of the normal FHA sales that could not close. Click here to see 2022 Central Florida Housing Market  /2022-CENTRAL-FLORIDA-HOUSING-MARKET---32819---32836---Orlando-Florida-6-22000.html

Bidding wars often result in offers that exceed the initial asking price and best offer with favorable conditions generally win's the executed contract. These types of contract's create a sense of urgency among buyer's. These offers also increase market exposure and competitive advantages

Currently the two spike in the interest rates in June and July somewhat tamed the market and slowed down home buying. Currently August 15th, 2022 it has been reported that bidding wars has almost came to a halt. This chart from the National Association of Realtors depicts nationally where we are at with bidding wars.

This chart also shows up to five offers earlier this year and now three offers. The shift is here in the market and growing inventory with more homes on the market.

If you put your plans on hold along with interest rates predicted to climb to 6% by end of 2022 and maybe higher 2023. With less competition for you as a buyer, this maybe your time as more homes come on the market and creative for new construction by the builder. It's still a seller's market but at a much slower pace.

NEW CONSTRUCTION

Along with making history during the pandemic, new construction was opened to highest and best offer which was never heard of and with waiting lines. The number of homes sold currently shows a decline the last few month's since the interest rate spike. Also reported was many new construction homes in Central Central Florida and Disney area has canceled many new construction contracts due to non qualifying buyers with the interest rate spike. Click here to learn more about new construction in Dr Phillips /BUYING-NEW-CONSTRUCTION-HOMES-IN-DR-PHILLIPS---32819---32836---Dr-Phillips-6-18641.html

HOUSING MARKET SUPPLY

With this interest rate increase, this caused many homes for sale to sit longer on the market and thought was to drive the housing prices down that will eventually lead to a balanced housing market which is the ultimate goal. Click here to see Central Florida housing shortage /CENTRAL-FLORIDA-HOUSING-SHORTAGE---32819---32836---Dr-Phillips-6-19838.html 

Also it takes a skillful and seasoned professional realtor and trusted advisor such as Kevin Strawter to get your home sold, stay connected and call today at 850 496-6412. Generally it's easy to get an executed contract, however the experience kicks in on holding it together. So much can go wrong. Serving Dr Phillips and Central Florida and opening and closing doors for many families since 2005. Click here to know more about Kevin Strawter /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html