The Florida Realtor Association quoted an article in USA Today yesterday. They cite several factors affecting the Real Estate market this spring including higher home prices, more housing inventory available and moderating mortgage rates. The authors Janna Herron and Paul Davidson had this to say:
“If you’re hunting for a house this spring, say goodbye to frenzied bidding wars. And if you’re selling, get ready for good, old-fashioned negotiations.
While real estate brokers aren’t declaring a buyer’s market just yet, demand has definitely cooled since last summer and the upper hand sellers once enjoyed largely has disappeared.
Escalating prices and higher interest rates convinced buyers to step to the sidelines in the fall, slowing the once-runaway market”
They mention that the number of multiple offers made on homes has dropped in many areas of the country. “Sellers in the areas where we saw the highest appreciation, they can’t expect to see that now,” says Jennifer Johnsen Cameron, a vice president with Coldwell Banker Bain in Bellevue, Washington, outside Seattle. “Sellers need to be realistic about pricing. They can no longer name their price.”
In June, the median price of a previously owned home hit $276,500, the highest level for the year. Mortgage rates hovered around 4.8 percent, on their way to above 5 percent in October and November – a seven-year high.
Rates have since moderated, giving buyers an extra $100 or in savings per month on a mortgage payment. Rates are expected to stay below 5 percent this year – thanks to a more patient Federal Reserve, says Lawrence Yun, chief economist of the National Association of Realtors.
What does all of this mean for Sarasota? Our housing market is somewhat different from other areas of the country because of its year-round nature and the large number of home buyers migrating to Florida’s Gulf Coast. Still, we can expect to see home prices soften and the market behave in a more balanced way than it did for much of last year. We are seeing that buyers are being more patient. For example, we more often hear that a buyer would rather wait for a remodeled home to come on the market rather than take on a remodeling job on an un-updated home.
If you are thinking about selling this spring and summer, take heart. Homes are selling in the Sarasota area but you will need to pay attention to how your home shows. Proper staging will be important to make sure your home stands out from the competition. Great professional photography is vital to make certain your home is noticed on the web. And your home will need to be marketed properly using tools like social media. We literally wrote the book on this: How to Sell Your Home in Today’s Market: Sell Faster in the 21ST CENTURY – available on Amazon in paperback and Kindle.
If you are curious about selling your home, give us a call to discuss your options in today’s market – 941-320-9399