If you’re thinking about buying a home, you’re probably thinking about needs, interest, home prices, to figure out whether this is or is not a good time to get in the real estate market.
Here is some information that could help you: inventory is up compared to last year and even though interest rates are higher, there might be some good opportunities for you!
Inventory is up
Homes sales have slowed because of different reasons: since the interest rates are higher some people are using for rates to hopefully go down, and homes for sale are staying longer on the market. This is great if you are planning to buy a property! In the Sarasota/Bradenton area, home prices are still going up, and we expect prices to keep going up at a slower pace.
Median condo prices were up 35% and single-family home prices were up 41% from 2021, both posting record highs for the first quarter. The increases were the result of a 47% increase in the average price per square foot.
Mortgage Rates Will Continue to Respond to Inflation
We have all noticed the higher interest rates, created by the Feds trying to control inflation. We will have to wait to see what happens with inflation and how the interest rates will be affected.
Because we are in unprecedented territory, it is difficult to say with certainty where mortgage rates will go. Projecting the future of mortgage rates is far from an exact science, but experts agree that, going forward, mortgage rates will continue to respond to inflation. If inflation stays high, mortgage rates are likely to do so as well.
Home price changes for Central Florida West Coast
There has been less buyer demand probably because of the higher interest rates, but we are expecting a high influx of buyers, with the normal “snow birds” traveling here this winter. We expect small price increases, since demand is still higher than in other areas of the country.
What this means for you
This is a great time to be a buyer. You have more inventory to choose from and in some cases, we can negotiate the terms of the contract (price, closing date, etc)..
If you tried to buy a home last year, you know inventory was very low and you needed to be in a position to outbid all other buyers. Things have changed now, and conditions are better for buyers.
Inventory is still low but conditions for buyers are definitely better!
This is a great time to start your search. New year, new life, new home. And who better to help you find it than a trusted local real estate professional?
In Conclusion
It’s a great time to buy a home, since there is better inventory than a few months ago.
That means more possibilities of finding that perfect place to call home! Don’t wait if you plan to buy a home in the Sarasota/Bradenton areas, since we still expect prices to go up!
If interest rates go down next year or later, you can always refinance to take advantage of lower rates!