Wednesday, October 27, 2021 / by Flr Team
The pandemic only hindered the housing market temporarily, as the market came back hotter than ever! According to the National Association of Realtors, the median home price in August 2021 was $356,700, up 14.9% from August 2020.
Inventory for sale dropped significantly since the pandemic started, and never quite came back to normal. At the same time, buyers looking for a home slowed down during the period of quarantine, but then came back to normal. The number of homes for sale hasn’t quite caught up to the number of buyers, hence making us where we are at with the market right now.
It’s easy to feel the pressure to buy when houses are getting snapped up all around you, but does that mean you should jump right in or is it better to wait out the hot housing market, waiting for it to calm down?
Don’t Let the Fear of Missing Out Drive You
Just because everyone else is doing it, doesn’t mean you should too. Don’t force yourself to buy a property that you don’t love because you’re afraid of missing out. Being patient in this market is hard, but overpaying for a faulty property will ultimately lead to more regret.
Interest Rates are Very Low
Now is the time to take advantage of super-low interest rates. David Friedman, CEO of Investment Property Platform Knox Financial says, “there have been very few times in history when we’ve seen mortgage rates hovering around 3.3%.” Andy Kolgdgie, owner of Cash Home Buyers Georgia adds, “The Federal Reserve has also indicated that they plan to continually increase rates over the next four years.”
Don’t Wait for a Better Price
Waiting can be a gamble. You could wait to purchase with the thought of home prices coming down, but even if they do, if rates increase it will be all for nothing.
The Market is Stable
Unlike the unstable market leading up to the economic crash of 2008, this market is pretty stable. While demand will start to slow eventually, there are no indicators of prices going down anytime soon. Marina Vaamonde, founder of PropertyCashin says,” the number of home sales will likely decrease in the first half of 2022 compared to this year. Although demand will still be relatively high, there might be some let up for buyers.”
Bottom line, you’re ready to buy a home when you’re ready. If you are fully committed to buying and are in the appropriate financial position to do so, then you should be looking. Contact our team at Florida Lifestyle realty where we can help you learn more about the process, what you’ll need to get started, and what to expect in this market.
Florida Lifestyle Realty