How many times have you heard the phrase, “it’s a buyers or seller’s market” and what impact has that had on your real estate decisions? In buying or selling a home, there are lots of moving parts and coordinating of information to make sure your decisions work out best for you. It can be easy to want to rush into a decision if the factors are desirable. However, the best thing you can do when considering buying or selling a home is to educate yourself on your current real estate market, how the process works, and what key things to look/plan for in your upcoming buy or sell. In other words, we need to learn to slow down in the midst of this “rush” in the real estate market around us.
Understanding the real estate “rush”
Currently here in Polk County, it is very much a sellers’ market. Despite the pandemic, people are still moving in and out of the county. In my recent experience, there have been multiple houses we looked at that were listed and had a contract to sell within 24 hours. Yes, within 24 hours, major life decisions are being made to move and live in a new home that fast. Crazy right? I think it is. And because people are willing to scoop up homes and land so quickly, you have to get your game face on and be ready if you’re in the market for a new house.
Right now, there is little-to-no inventory available in the real estate market. My realtor let me know that there are roughly only 200 houses on the market in the greater Polk county area listed to be sold. Historically, that inventory number has been closer to 1,700 homes. According to the Orlando Economic Partnership’s 2030 report, 1,500 people are moving to Central Florida per WEEK. Yes, weekly. In this report, they project that number to stay and possibly go higher over the next 11 years. And rounding out all of this is Jobs. Lots and lots of new jobs. Amazon just put roots right here in our Lakeland Airport and planted warehouses here on County Line Road. On top of that, Publix, GEICO, Saddle Creek, and many more companies are continuing to expand.
Learning to slow down despite the noise
As we’ve stated, lots of people are moving here weekly. Beyond that, however, we are also experiencing record-low mortgage interest rates, which contributes to the “rush” in the real estate markets. It feels like over the past 5 years, all I’ve heard are “Interest rates are at an all-time low!” And then I hear the same thing the next year, and again the next. Right now, I know that there are people closing 30-year mortgages for around 2.75%. That’s low, but who’s to say it won’t go even lower next year? Every year that rates get lower, it gives the buyer more purchasing power. In other words, home ownership is more accessible than it has been in a long time. Bottom line: when considering purchasing a home, slow down and make sure the time is right for you. Sure, interest rates are trending down, but we don’t see them rebounding anytime in the near future. Don’t let the “all-time low interest rates” rush you into making a quick purchase.
So you’re selling? Well then, if your property is well taken care of, in a decent location, or both, be prepared to let the offers come in and hand-pick the one that best suits you.
With people moving here every week and lenders making mortgages more and more accessible, that is a deadly combination for today’s current market. All that to say, good luck and happy home hunting.
November 2020
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
