The lack of homes to purchase remains a problem with the real estate and housing market here in Florida. The National Association of Realtors is correct in that this is the biggest problem the market faces today. It’s not that money is tight or that interest rates are rising; it’s the continued shortage of homes to buy all across the country and in Florida.
Because interest rates are rising, borrowers need to offer realistic prices on homes they like so that they actually get their real estate offers accepted instead of having their bids rejected.
Florida is now facing a seller’s market, not a buyer’s market. When buyers are getting above ask price for their homes and are not paying closing costs , title policies or surveys, it’s obviously a seller’s market. It all comes down to basic economic: supply and demand. When demand is this upside down from supply, Florida homes will start costing buyers more to close with their own out of pocket money – not the sellers.
Used homes are going to start seeing price increases as well due to increased demand on new homes for sale and there not being any. Potential buyers have to expand their minds a little and start looking at fixer uppers instead of just new construction. Prices are going up across Florida and there is not an end in sight just yet. As long as the economy remains strong, the market will stay in this holding pattern.
This is new cost of entry into the market and that new buyers are going to have to pay the price – whatever that price is. The housing market is going to keep going up. This not bubble, just the normal cost of supply and demand. Consumers are going to have to start making up their minds quicker on purchases and quit expecting deals which are over for the foreseeable future.
Debbie Bloyd is a Florida radio host and a financial expert, who has been in the mortgage business for over 20 years. Her website can be found at www.moneystrategieswithdebbie.com.