If you are thinking of buying or selling your beautiful Florida home in 2017, knowing exactly where the housing market is now and where it’s heading is something important you need to know. Well, there are many reasons to believe why Florida real estate market in 2017 will drop soon, here is just a couple:
As more Fed interest rate hike is expected in 2017, buyers will be forced to look for cheaper homes. As a result, each Florida home seller will need to reduce their home price in 2017 to sell his or her home first. Every uptick in Fed interest rate means homebuyers qualify for less mortgage loan to buy their dream home with.
Since the record-breaking hurricane has directly affected the Florida state, it gave many current homeowners a reason to move another state and the buyers of another state to move other than Florida. The combined net effect of those who experienced the hurricane disaster and those who got scared of moving to Florida means Florida home seller will need to sell their home & homeowner insurance at low prices as compared to last year.
When there are more people to sell than those who want to buy, we say that it’s buyers market. Because supply exceeds demands, buyers can take much time to shop for their home and can sit longer to negotiate according to his or her price range. Even if sellers don’t reduce the price, they will be willing to welcome low offers because of the unpredictability of how long it will take to restore the seller’s market (where demand for home exceeds its supply).
However, if you buy a home when Florida home prices are low and later want to sell when prices climb high, you could earn good profits.
Although some believe 2017 will be the new beginning of Florida real estate market, Miller Samuel, President and CEO of Jonathan Miller, said: “It’s not that there’s no demand for it, it’s just that the demand does not match up with the supply, so we have a slowdown in sales activity.”
Jay Parker, Douglas Elliman’s Florida brokerage CEO, said: “All the hostility and volatility caused buyers to pause, people who would normally be in the market for real estate, whether for investment or transitional move, put the brakes on.”
“I don’t think anyone has a crystal ball, but an anticipated continued rise in interest rates will force the hand of those who otherwise don’t feel a necessity to buy,” he added.