Considering buying a home?
I wanted to share some crucial information that could greatly impact your decision if you are considering buying real estate in the near future.
Recently, the Consumer Price Index (CPI) report has been released, and it has brought with it some favorable numbers. The numbers indicated a cooling of the economy which will have a major impact on the housing market.
These newly reported numbers of financial reporters indicate that several major banks are predicting that the Federal Reserve will reduce interest rates by mid-March of 2024. These factors together create a unique opportunity in the real estate market that I believe deserves your attention. The Bond market, which is closely correlated with the 30-year mortgage interest rates will react ahead of the Fed’s decisions.
Now, you might be wondering why I am suggesting that November, during the holiday season, is the ideal time to enter the market. The reason is simple yet compelling. The current real estate market in the United States is facing an estimated shortage of more than 5 million housing units. Due to the historically low interest rates we have experienced in recent years, many potential sellers are hesitant to list their properties for sale, as they do not wish to forfeit their favorable mortgage rates. This situation has led to a substantial imbalance in the supply and demand for housing.
As a result of recent high interest rates, housing sales have slowed down significantly. However, we believe that there is a significant pent-up demand waiting to be unleashed when interest rates, as predicted, fall below 7%, and even more so if they are reduced to less than 6%. This pent-up demand, combined with the scarcity of available properties, could and most likely will lead to fierce competition among buyers and a return to multiple offers (10 to 30 offers per home in some cases) and massive overbidding, potentially exceeding $100,000 or more per house. This was the scenario just a little over 18 months ago before rates rose above 4.5 percent.
While predicting the future of the real estate market is not an exact science, the signs are pointing toward a significant shift. Our current sales numbers are on par with the levels we experienced during the lockdown at the beginning of the pandemic.
The pent-up demand is undeniable, and history has shown that when circumstances open up, home values and the number of sales and prices can skyrocket.
In light of these factors, I want to emphasize my STRONG recommendation: if you have any interest in buying a home, now is the time to act.
Prices are currently favorable, and there is a relatively higher inventory, but this window of opportunity may not last. While there are no guarantees in real estate, I firmly believe that the current conditions present a compelling opportunity.
If you would like to discuss this further or if I can be of any assistance to you in your real estate endeavors, please do not hesitate to contact me directly at 352-213-1084.
It is my hope that if you do have a need to buy, you have the best opportunity to get the best home possible for the best price possible.