Yes, it’s harder to be a buyer. Yes, it’s opportunistic to be a seller. But most sellers turn into buyers right? Where are you going to live next?
Current housing prices seem to be surging across the board for most Americans, and Floridians are no exception. Due to several factors, it is an opportunistic time to be a seller and cash in on this abundance of market inflation. However, while advantageous for sellers, it inevitably creates a hard time to be a buyer, as many of you well know. Since nearly all sellers eventually turn into buyers, anyway, understanding this tug and pull between the supply and demand in the housing market is critical to implementing long-term homeownership goals and success.
So, what are the factors causing this market appreciation? And what should you do about it?
For some, seeing this market appreciation makes people think, “Bubble!” and experience flashbacks to 2008. Luckily, this is not another round of the mortgage meltdown that happened 10 years ago. The dynamics that caused that event (side note- love the movie, “The Big Short”!) are not in play here. Today’s values are based upon the simplistic economic principles of supply and demand.
Demand has increased in part due to pent up demand from many homeowners and potential buyers who were forced to stop looking during the Pandemic in 2020. With this rush of individuals back in the market, there is also data highlighting the demographics of millennials that are reaching home buying years as their families grow and careers progress. Moreover, international buyers are in play now more than ever, seeking quality returns in the global real estate market shaken up by the Pandemic. Now take all of this and throw in the facts that there are currently some of the lowest interest rates available ever and its clear where the demand has come from.
The influx in demand is coupled with a shortage in supply. There is an imbalance of housing inventory as we see migration from certain areas of the country to other states. Housing industry think tanks study these trends intensively and those of us living in South Florida know anecdotally that this is a significant push on demand as well.
So what is the answer?
Patience. Diligence. Perseverance. With as much as the country has been through in the last year, it’s understandable that a large crowd of demand would hit the housing market. And as much as we can talk about how challenging and difficult this market is to participate in, the value of home ownership is worth the effort. Build the right team around you to have the best chance of getting the seller to accept your offer.
Have questions, I am here to help! Feel free to reach out anytime.