Recently we are hearing people ask if the real estate market is crashing and it has made me think of the sweet children’s story “Chicken Little” also know as "Henny Penny". Poor Chicken Little thought the sky was falling and the world was ending when an acorn fell. He only had a tiny view of his little part of the world. The sky wasn’t falling, and the world wasn’t ending, rather a squirrel lost an acorn that’s all. The acorn in the current market is seeing homes having price reductions and homes staying on the market for 20 days. It seems so strange because for two years homes were being sold in hours and no one was reducing their price. But, before the Summer of 2020 homes were on the market an average of about 50 days. It was common for a home to have a price reduction a time or two. Yes, interest rates have increased over the past few months. Surely, no one thought they would stay in the 2% range long term? The first home I bought I was excited about my 6.9% interest rate and Ray was thrilled to be able to assume a mortgage for a rate of 9% when the going rate was around 14%. So let me put your mind at ease, experts don’t believe the sky is falling. Take a moment to read this article with contributions by the Chief Economist of the National Association of Realtors, Lawrence Yun. It's market watchers view of the market. Or at least read the first three paragraphs, it’s very interesting. The market is not moving at lightening speed. New construction contracts are happening without bidding wars just to purchase the lot. There are homes on the market giving buyers a chance to look and choose. Like on Sunday afternoon we showed a couple five different homes. We have a customer under contract with a VA loan right now. Our Sellers are still able to select an offer with terms that fit their needs, they just don’t have 10 of them to choose from. And all that is Ok. The sky is not falling, it's just the breeze of change causing a few acorns to fall.
Here are a couple other articles I found interesting: Preparing for House Hunting Most Completive Price Points in Florida A year ago competition was intense for a property. If you decided to step away from house hunting for a bit, now might be the time to test waters again. Currently the inventory is building and competition is lighter. We have had many buyers with financed offers see their offers get accepted. Having a good lender is important in the process. I thought this article was really helpful. How to Choose a Lender
Market Data and Stats:
Below are three links to market stats and data in three different communities. These Market Reports provide detail information about a specific area in easy to read format. You can click on a property to get all the listing details. Take a moment to look at these Market Reports: Gulf Cove: the Water Front Community in Port Charlotte
Are prices dropping? Let's look at just that data for each county. How many homes are on the market, and how many have gone under contract? Also, how many have SOLD in the last 30 days? Then let's look at how many have decreased in price and how many have come back on the market in the last 7 days.
Manatee County: Active on the market: 2131 Pending: 1290 SOLD: 718 Decreased in price: 153 Back on the Market: 19
Sarasota County: Active on the market: 2078 Pending: 1404 SOLD: 934 Decreased in price: 150 Back on the Market: 28
Charlotte County: Active on the market: 1302 Pending: 779 SOLD: 499 Decreased in price: 103 Back on the Market: 30
So when you compare the number of properties on the market and the number of properties reducing their price, the price reduction is a small percentage of the properties on the market. And the pending and sold numbers are holding strong.
As we go into the end of hurricane season (which will end November 30th) I came across this helpful guide which explains pros and cons on different types of hurricane protection and rough estimates of cost... Homeguide : Hurricane Shutters
Last I want to leave you with this YouTube video. The song is "Small House", it's a beautiful tender song about life, love, small houses. It will make you smile. The singer/songwriter couple is Ray's niece and her husband(If you watch till the end there is a treat, their daughter joins in, too). Over Labor Day weekend we were fortunate enough to see them at a musical festival in Michigan.
Enjoy their original song "Small House" (pardon the ads, it is a YouTube video)
Oh--check this out!!!! we are working on updating our marketing look. Here is a sneak peek at our new logo concept. We would love to know what you think!