Is a Buyers Market on the Horizon?

A Buyers Market in the Making

Are we in the beginning stages of a buyers market? Nationwide, we’ve seen buyers pulling back. At the same time, home prices are on the rise. In fact, since 2011, the U.S. median home price has risen 55 percent. During the same time period, wages only rose 18 percent.

Additionally, the Federal Reserve has become more aggressive to prevent inflation. They’ve increased short-term interest rates multiple times over the past year which has resulted in mortgage rates increasing slightly during the past couple of months. The Fed is expected to continue to raise rates 3 or 4 more times over the next 12 months due to the hot economy. Job openings are at record highs and the number of people applying for unemployment is at historic lows.

Ultimately, as long as the economy remains strong, home sale will continue their upward trend, despite interest rate increases. And, if you consider the current mortgage rates, they are still at historic lows.

Also, contrary to popular belief, mortgage rate increases don’t always result in a reduction in home sales. In 1984, 1994 and 1999, interest rates rose approximately two percentage points per year. However, home sales remained flat or increased.

Finally, with home buyers taking more time, existing home inventory has stabilized. At the same time, new construction homes have increased. In fact, a recent survey conducted by the National Association of Realtors (NAR), showed 50 percent of consumers feel now is a good time to sell. Where as two years ago, only 28 percent of consumers felt it was a good time to sell. And, most home sellers are also home buyers. As inventory increases, prices will stop increasing and prices may actually start to decrease.

So, if you are considering buying your dream home, it is time to resume your search for your own slice of paradise!

Begin Your Own Property Search:

Since we are in the process of shifting from a sellers market to a buyers market, if you’re ready to begin your search for your Southwest Florida Luxury dream home or condo, I encourage you to explore my website to find information about communities in the area. If golf is your game, I specialize in golf community real estate and would be happy to help you navigate the more than 100 different golf communities in our area. If you prefer a more direct approach, I will provide a list of properties that meet your criteria and/or communities that meet your needs.

Also, if you are considering new construction, remember the contractor’s real estate agent represents the builder’s best interest, not yours. There is no cost to you to have an agent represent you. In fact, I may be able to help you save money and negotiate for extras which the builder may not let you know about.

Lastly, I will handle all contract negotiations for your property from offer to close!

Considering Selling your home?

If you are looking to sell a home in Bonita Springs, Estero or Naples, I encourage you work with a REALTOR® who has the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. If you live in a golf community in southwest Florida, you are competing with more than 100 other golf communities. Contact me today to learn how your home or condo stacks up against the competition and how we can position your property to sell quickly and for a fair price whether it is a buyers market or sellers market in your community.

Bottom Line:

If you’re looking for a focused and goal-oriented Realtor in Naples, Bonita Springs or Estero who will help you achieve your Real Estate needs, please reach out to me directly.

Additionally, if you are looking for a golf community expert or you are considering buying or selling a home, a luxury home, luxury vacation home, luxury golf home or dream home, call me or text me on my mobile phone at 239-370-0892 or email me at Matt@NaplesGolfGuy.com

About Matthew Klinowski, PA