A good portion of the first time buyers have disappeared due to the continuous spikes in the interest rates since June 2022. Generally these types of homebuyers make up 40% of the home buying market. Housing affordability and renting has gone through the roof. Home buyers are now moving further away than expected to stay in the comfort zone of a monthly mortgage payment. There are some home buyers that are turning down wants and focused on looking at needs. The year of home built is very important because it needs to be energy efficient, however if older home, ensure you have newer windows, appliances and check insulation in attic. Energy cost are much higher nowadays. If there is solar in place, negotiate a firm price on home to take over from the solar system bill if there is a balance.
Of course affordability is the latest trend since the pandemic of 2020, during a two year period interest rates were low as 2.2% and now has tripled. so then and now interest rates are high and this forces homes for sale prices to come down for affordability and a housing market correction. Cooling inflation boots home affordability. Click link to learn more about housing market correction /HOUSING-MARKET-CORRECTING---32819---32836---Dr-Phillips-6-22828.html
Also the spike in the interest rates ripple effects has now cooled the housing market and brought inflation down a bit and home affordability is in motion, however we have a long way to go. The mortgage rates rose above 5.5%mid June 2022 and by the end of year mortgage interest rates reported 6.4% after peaking above 7% in October and November.
To avoid the rush to get a great interest rate, cash seems the positive way to go. Always remember cash is king presenting the perfect offer. This is a much quicker sale and to avoid private mortgage insurance which is another additive to your monthly payment. Many sellers are accepting these offers as long as they are within their desire. Lean on a trusted advisor to understand what is the best offer to accept in a multiple offer scenario. The worst thing you want to do is except an offer this is not to your best interest.
As a trusted advisor, professional realtor and retired military veteran, I am here to serve you and always on the pulse of the housing market for the Dr Phillips and Central Florida area. Always stay in tuned, educated and connected in this volatile housing market to purchase or for the sale of your home. In the absence of trustworthy up to date information, real estate decisions are increasingly being driven by fear, uncertainty and doubt. We as trusted advisors drive the real estate community and always preaching the truth of real estate. So don't let this shifting housing market delay your dreams, data reveals home values typically appreciate over time and that gives your net worth a nice boost. Click link to learn more about Trusted real estate advisor /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html
If you are ready to start your journey contact me today at 850 496-6412 to help begin a new walk to homeownership and all of your real estate needs. Click link to learn more about Kevin /ABOUT-KEVIN-STRAWTER-P-A---MRP--GRI--ABR-6-14330.html
If you like one of my many free ebooks this one is navigating the buying process. Click link to request one here