Will the Real Estate Market Correct Itself?
The real estate market has been red hot this year! But will it stay this way?
There is a lot of buyer fatigue happening since the spring market craze. Multiple offers within the first day a listing hit the market. Virtual showings became an actual normal reality. Mortgage rates dipped. Cash offers dominated the market place worldwide.
But what is happening now? In Southwest Florida this is what I have experienced with my customers is...they do have buyer fatigue from this crazed market. Which means they are tired of putting in strong offers only to find out they are up against 10-15+ other buyer offers. Properties are selling for over listing price within days of the listing going live and so on. There is a lull in the market with less buyers out there shopping for new properties. offering the opportunity for buyers to search for their next property without an offer craze. Property prices are a bit more realistic. Properties are still selling quickly, close to asking price too. Less cash offers which gives way to those needing a mortgage to purchase their property. But mortgage brokers are working very hard and closing these deals within 30 days or less!
Also, mortgage rates are still low. According to Realtor.com they are still hovering around the three percent rate. Take a look at the rates for mortgages since 1971 below. The savings within the low rates now are huge!
But inventory is still low. Year over year the inventory of properties listed are way down. Locally here in SWFL this is true as well. Everyday more and more listings are hitting the market in SWFL. Within the past week there have been over 500 new listings that went live on the MLS. Historically more properties get listed during our in-season time. This way the snowbirds who are coming down for seasonal rentals have the opportunity to purchase their own property. What is in-season for SWFL? Typically after the winter holiday's until Easter (Christmas/New Years to Easter). But this has varied over the years with more and more snowbirds heading down in November.
Overall this insane market had made everyone a bit crazed. No one has a crystal ball to know exactly when it will correct. It can come down over the next year or even three. But since we, here in Naples, are a luxury destination location it will not correct as quickly as other cities or areas nationwide. If you are looking to move from SWFL to a different area than your price increases do work to your advantage.
Thinking of selling within the next six to twelve months? Get a personalized home evaluation from me with accurate market date. This way I can meet with you to review and upgrades completed and differentiators your property offers. Click here to complete.
~ Felicia, xoxo