Today, Yvonne and I will demystify the current and future Southwest Florida real estate market, a common inquiry from people when they meet a real estate agent.
How is the market right now?
We believe that pricing is more important than anything right now. People’s perception is the key to getting your property sold quickly.
If they know that they’re getting a good deal, and it’s priced right in the right location, then there will always be a crowd of buyers at your doorstep. Otherwise, the house will be just sitting there while buyers waiting to see if prices are going down.
More price decrease than new listings
Every day that we get on the MLS, we have noticed that over the last month, there have been more price decreases than new listings. So then when the price goes down, buyers are taking action.
There’s just no such thing as pricing ahead, you can’t get ahead of it. The prices are rising so quickly that you can’t even price your property correctly and in some cases, you can’t price it high enough.
Golden years are over
Are sellers still holding onto the peak of the market pricing and haven’t adjusted to it? Are agents misleading sellers to get the listing? Where do we think all this confusion is coming from?
The golden era for real estate was between 2020 and 2021. During those years, everybody was on board to sell their house whether they needed to or not. However, that trend has gone away as everybody has already caught on to what was going on.
Now, the people who are listing their homes in the market are the people who need to sell. A lot of people say that people aren’t gonna sell their homes because of the 3% interest rate they got after they took out their mortgage. People are not going to sell their properties because it doesn’t make sense to sell and let go of a 3% mortgage.
Southwest Florida Real Estate Market Still Going Strong
Last year, everybody kept thinking that the market was going to crash. Currently, however, it seems like that mindset has gone away. Florida went through a hurricane, and we went through a lot of changes. However, that didn’t stop anybody from buying or selling their homes; the market’s still going as it is.
The Federal Reserve has kept raising the interest rates. But we all know that mortgage interest rates are not directly tied to the Fed rate, but rather to the 100-year Treasury bond.
The market moves together
As the Federal Reserve kept increasing the interest rates, mortgage rates kept going up. In anticipation of this trend, with every new interest rate increase, a new wave of buyers are more convinced to go ahead and do it now before rates go up even higher. Now the rates are over 7% which is a 20-year high. Historically, the current rate is not that high, but it’s all relative to what we’ve experienced lately and the latest trauma that we’ve all endured right in the last three years. Eventually, it’ll become the new normal to have a 7% interest rate, then people will just adjust to it.
Watch this YouTube video for more insights about the Southwest Florida real estate market:
Best Construction Communities Today
Yvonne tells us in the video that she likes the Timber Creek area as one of the best new construction communities today. So what’s great about Timber Creek? The community will be going to have resort-style living.
So how did Yvonne get drawn into doing new construction? While most agents focus on resale, Yvonne has shifted her attention to new construction for the past year and a half. New construction has now matched the real estate market, with a higher inventory. It’s the most inventory out there, more than resale.
Buyer’s Misconception about New Construction
There’s a lot of misinformation and misconception about do you work with a real estate agent or not.
Yes, buyers still work with real estate agents. Builders want to continuously move along which scoops the buyers all together. Unless there’s no somebody else outside giving you options, what to look out for, or what you have, builders are not going to tell you.
Buyers need someone who will point out things such as options that are available to them. There are instances where a buyer is a little bit timid and is worried or nervous about which is normal or is not. When agents do a walk-through, we see things that buyers don’t see.
The real estate market of Southwest Florida is still moving, there’s always hope. You shouldn’t feel like you’re lost, as long as you have good marketing, a good agent, good advice, and good insight.
Navigating the real estate market is not as easy as it was a year ago, but it’s not too hard. Buyers often wonder if their property will appreciate in the next five years, especially when current prices are already high. Buyers shouldn’t worry about it too much. With the cost of a gallon of gas from five, ten, or 20 years ago as an example, it is safe to say that prices will continue to go up as a result of inflation and an expanding money supply. Moreover, real estate will always triumph over other types of investments, and it is always the safest investment over time.
We predict that property values are going to go up by 5% to 10% in the next year. And if the interest rates go down, the real estate market frenzy will surely come back – making prices go up even more.
This coming season is going to be the absolute best season to list your home for sale because, in the following year, we’re going to have an election. In an election year, business owners tend to hold their breath and wait to see who’s going to be the President before they relocate, expand, or do anything with their business making it difficult to sell homes.
If you want to test the water, then test the water but within reason. Set a reasonable asking price for your home and heed your real estate agent’s expert advice.