What’s the market doing???
Take a deep breath, it’s still January. I know that some listings aren’t getting the showings we hoped for, but properties listed under $500,000 are getting showings and offers are being accepted. The higher end market seems to be a little quiet this month.
Every article I can find relating to the Southwest Florida economic forecast for 2017 from commercial and residential real estate to banking, to health care to tourism is optimistic and expecting growth in the economy as well as planning to hire more people. Economic Growth and Jobs! The perfect recipe for more home sales.
Nationally, the economy is expected to grow by 2.1 percent in 2017 with existing home sales to rise slightly and new home construction will be up by 100,000 units, according to Dr. Lawrence Yun, NAR Chief Economist. Locally, Florida Home Realty agents are telling me that the northern market is starting to move, allowing buyers who have been waiting to buy in Southwest Florida to finally “pull the trigger”.
Although the mortgage rates are creeping up, the talk of easing some of the regulations of the Dodd-Frank Act may help to increase lending on commercial and residential mortgages. Dr. Yun expects the 30-year-fixed-rate mortgage to go up to 4.4 percent in 2017.
Fewer buyers are able to save for a down payment in 6 months and some are needing as much as 24 months, and that of course affects timing of purchases. Our mortgage expert, Anthony Schrenkel with American Eagle Mortgage mentioned he has some great new programs for homebuyers that is unique to his company. One program provides buyers with a “grant” which is 4% or 5% of the loan amount depending on the credit score and the “grant” is forgiven at closing. Give him a call to see if your buyer qualifies.
No one can predict what the future of our local real estate market will be 11 months from now let alone tomorrow. There is a lot of inventory for buyers to choose from and if negotiations fail, who knows when the next buyer will come along? Today, it’s a buyer’s market!
Written By: Kathy Zorn