You may have been browsing homes online or hearing about how fast homes are selling...but why?
There are a few key factors that are influencing the current sellers market:
1. Record Low Interest Rates
2. Low Inventory
3. Desire to upgrade/more space
Let's take a deeper look at each of these....
1. Record low interest rates allow buyers to get more money with less interest. This is a good thing because your mortgage payment will be lower than if you had a higher interest rate. Interest rates are currently under 3%! In comparison, last year getting a rate under 5% was a good deal and previous years 6-8% was standard.
2. Low inventory happens when there are more people wanting to buy homes than homes that are currently on the market. This is the driving force for a sellers market. What does this mean? Well, if you own your home and are interested in getting top dollar for it, it's great news. However, if you are in the market to purchase a home, this can be more challenging. The best way to increase your success is to have a solid local lender and an experienced, dedicated Real Estate Agent who is in good standing with local agents to help you negotiate the best deal and get you under contract!
3. The desire to upgrade or increase space has been triggered by recent events aka COVID 19. With many of us telecommuniting, "Zooming", working from home, and even homeschooling/virtual learning, many home owners are finding the need for more space. Whether it's a home office, larger garage for a home gym, or a play room/ class room for the kids, this is a trend that I don't see going away any time soon.
Overall, these factors aren't inclusive of all factors effecting the market. For example, on the Emerald Coast including the greater Fort Walton area, Niceville, Destin, Crestview, and Navarre areas we have several military bases. The PCS season (military base assignment timeframe) was on hold due to a "stop movement" order that prevented the movement of thousands of troops/airman to their gaining units. However, that order has been lifted and many military members and their families are eager to arrive to Eglin, Hurlburt Field, Duke Field, 7th Group, and Whiting Field. All of the aforementioned bases are in the area and our military members and their families are also actively looking to find homes.
Coming from personal experience as a Real Estate Professional, USAF Veteran, Military Spouse of 20 years, and a mom, I can empathize with both sellers wanting to get the most from their investment and with buyers who are looking for a home that meets their needs. If you or someone you know is looking to buy or sell a home on the Emerald Coast, it would be my pleasure to work with you.
Real Estate Pro & USAF Veteran