Tuesday, April 11, 2023 / by Abby Kurtz-Lendner
One reason for the decrease in supply is that many homeowners have no desire to move as they have secured generational-low mortgage rates in recent years. While interest rates have fallen for four consecutive weeks, they are still twice as high as before 2021. Homebuyers who are not deterred by current mortgage rates quickly purchase new listings. Almost half of the homes that go under contract are sold within two weeks of listing. This is an increase from about 25% at the beginning of 2023.
Redfin Deputy Chief Economist Taylor Marr believes that elevated mortgage rates may discourage potential sellers more than potential buyers. Giving up a 3% mortgage rate for a rate in the 6% range can be challenging. Serious homebuyers have become accustomed to a 5% or 6% interest rate and have adjusted their budgets accordingly.
Homebuyers are also facing challenges in buying homes, with many new listings receiving multiple offers and selling quickly. A Denver Redfin agent, Stephanie Collins, shared that one of her buyers recently made an offer on a move-in ready home in a popular area. The home was priced at $520,000, which was in line with the market, but it received eight offers and sold for $560,000 to another buyer.
The Florida real estate market is experiencing significant price increases, with three of the top five cities in the United States for price increases located in the state. Fort Lauderdale saw an 8.9% increase year-over-year, followed by West Palm Beach with an 8.2% increase and Miami with a 7.9% increase. On the other hand, home prices dropped in 28 of the 50 most populous metros in the United States, with Austin, Texas, seeing the most significant decrease at 14.7% year-over-year.
This blog was written given the information by the © 2023 Florida Realtors® article titled "Why Does It Still Feel Like a Seller’s Market?" By Kerry Smith.