August 2023 Market Update: It’s Not Cooling Down
It’s not cooling down…
The heat advisory notifications continue to blow up my phone.
And it’s not just the record-setting temperatures here in Central Florida, but the housing market is still on fire!
So, what am I seeing out there regarding Real Estate?
Well, my last two listings in July, one in Winter Springs the other in Orlando, both got SIX offers in a matter of days! And both of those listings went under contract ABOVE listing price with appraisal gaps.
Yes, we are seeing appraisal gaps again and quick inspection periods being offered by buyers as a means of putting forth a competitive offer!
I know you are wondering, “Jenn, how is it possible that prices are remaining strong, in many cases escalating, even with “higher” interest rates?”
Well, it comes down to this simple equation… low inventory + the 1,000 plus people that are moving to Florida each day = multiple offer situations.
New listings were down 31% in June 2023 compared to June 2022. And the average sold price increased this summer compared to last. EVEN with the increase in rates, inventory is frustratingly tight and bidding wars are back.
Why is inventory so low?
Right now, we still have less than two months of listing inventory supply, far from a five-six month supply, which would indicate a balanced market. Many people are not selling because they are asking the question, and maybe you can relate, “Where would I go?” Or, “Why would I trade in my 2% or 3% interest rate for a 6.7%”?
All fair concerns.
Regarding the first, there IS inventory hitting and it’s hitting every day. While options may be limited, there ARE options. You just need to be in the best position to strike when it hits. And that means ridding your home sale contingency in advance so you don’t miss that perfect house when it hits. Perhaps you sell and ask for a lease back to provide you with time to find the next home. Or you sell, pack your stuff in storage and Airbnb it for a bit.
And what about those pesky interest rates? Did you know, several lenders are offering incentives. Like my friends Jared Varitek and Alexa Holley over at FBC Mortgage. They are offering a free re-fi once rates come down— allowing you to secure the house you love now, and refi at zero cost in a couple years.
What is your motivation to move?
It truly comes down to what’s your motivation to move? If it’s not a strong enough, then you’ll likely stay put until the market cools down (if it does). And then once that “cool down” comes, you’ll be competing with all those people that sat on the sidelines for years.
But what if your motivation is strong enough now to jump into this market? Maybe you need more square footage. Or on the flip side, you are ready for a downsize. Or you need to change locations to be closer to the kid’s school. Or you desperately want that pool. Whatever that motivation is, where there is a will, there is a way. And I can help you find the path that makes the most sense for you to accomplish those goals. Just reach out.
Jennifer Christ Realtor Client Stats, 2023
To date, I’ve closed 7.5 million & have another 2.5 million pending for a total of 10 million sold so far in 2023! My goal is 14 million.
Who do you know that can I can help sell/buy this year to achieve this goal?
