People often ask us what the market is doing... Here's my take on the current state of the Florida housing.
Florida Housing Market Is Up
The second quarter this year saw a lot of activity in Central Florida’s housing market. There was an increase in sales, higher median prices, and more new listings. This is, no doubt, a reflection of Florida’s economy and jobs sectors, which both continued to grow. It’s also great news for both buyers and sellers.
What Does that Mean to You?
If you’re looking to purchase a home, it means there are more houses on the market, so you have more choices. New listings for single-family homes rose 4.9 percent since the second quarter of 2107, and new condo-townhouse listings rose 3.9 percent. If that trend continues, it should ease buyer demand and slow the pace of rising prices.
It also means, however, that more buyers are in the market. Hesitating to put an offer in on a home you love could mean that when you make up your mind, someone else might have beaten you to the point and had their offer accepted. (Don’t worry, though! Remember, there are more houses available… your next dream home might have just been listed!)
If you’re looking to sell your house, it’s good news for you, too. More buyers in the market means your house could move quickly if you price and stage it right. Single-family homes are not the only ones selling. Condos and townhouse sales are up 4.7 percent over last year, and foreclosure sales are down.
Competition for existing homes remains fierce, with more than half of successful single-family home sellers getting more than 96 percent of their initial listing prices. Median home sales prices are up 8.5 percent compared to the same period in 2017.
Homes are also selling faster than they did in 2017. The median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract) dropped.
“Half of the single-family homes that sold in the second quarter were only on the market for 35 days or less, compared to 39 days or less in the same quarter last year,” O’Connor said. “Among condo and townhouse sales, there was a similar-sized drop in this regard, from 50 to 44 days.” said Florida Realtors Chief Economist Dr. Brad O’Connor.
The Bad News?
The bad news, if there is any, is that interest rates are rising. Delaying a home purchase now, whether you’re contemplating your first home, upsizing or downsizing, could cost you more later.
According to Freddie Mac, the interest rates on a 30-year fixed-rate mortgage averaged 4.54 percent for the second quarter of 2018, up from 3.99 percent during the same quarter of 2017.
Your timing is perfect. Don’t hesitate! Get in the market now, if you’re contemplating it. Take advantage of the services of a professional Realtor for help locating your dream home and negotiating the sale. Realtors know the local marketing and can quickly help you locate what you’re looking for or find the right buyers for your home.