April 30, 2022
Part 2: This IS the market for sellers that want to buy
Welcome to Maji’s Market Minute.
Today I wanted to discuss the video I posted a few days ago, this video is Part 2 of the series “This IS the market for sellers that want to buy.”
Two days ago I discussed an Inman Connect article that stated that home sales were going to go down by 7.4% by the end of this year and by 9.7% by the end of next year. From all indicators, this seems to be true, of course things could change, there are many variables when it comes to the market and this is not 100% but pretty much across the board, of all the sources that I trust, this is what they are saying. However the dollar amount is going to go up.
How can this be? Remember, it’s supply and demand, so if the number of home sales are going down due to rising interest rates, inflation and lack of inventory the big driver is the lack of inventory so prices go up. The rise in interest rates is not having as bad of an effect in our market because let’s face it Miami is a cash town. People were financing bc money was cheap but historically, at least since I’ve been a Realtor since 1993, there has been a lot of cash in this town. (I do consider Miami a town. If you’ve been here long enough you know what I mean) lol So what does that mean as a buyer. Definitely jump on that property if you see it and remember it really boils down to supply and demand. That is what will be driving the market. We are in the spring selling season and I don’t see a lot of inventory, I see a lot of sales. This leads me into today’s statistic that I wanted to discuss which was on Channel 4 news. Home price values have increased by 29.7%. Honestly I think it’s higher than that depending on the area and product. This was based on a comparison from March of last year to this year. This is true too.
How is this possible? This is conflicting. Not really, if you look closely we are talking about different things. Home prices are valued and the number of homes sold is not. So what’s going to happen? There are also other studies stating that 40% of sellers that are thinking about selling will be selling in the next year. That’s a very interesting number. What’s going to happen? Who knows. Maybe the Shadow knows. lol. In all seriousness, in my opinion with my years in the industry, coming from a real estate family, being a Miami native and seeing many different markets this is what I advise…
– If I were a buyer and I found the right house I would jump on it because when interest rates creep up it will affect affordability plus we don’t know what is going to happen with the inventory. We are in the spring selling season and inventory is low. Covid changed everything. The seasons have changed.
– If I were a seller I would definitely, 150% put my house on the market right now. I would not even wait a month because all indicators are that there will be more inventory but we just don’t know when. With so many variables it is impossible to know what will happen and when it will happen. So I hope that is not too confusing. I did want to follow up my video from yesterday with a more in-depth video. If you want to stay up to date with this complicated market, please follow me on Instagram, Youtube and Facebook.
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Maji Pace Ramos
~ Miami Realtor since 1993
~ 2nd Generation Realtor
~ Miami native
305-519-7940 | firstname.lastname@example.org