By Brett Ellis
While we’re awaiting the Fed’s decision on interest rates at the time of writing this article we thought we’d delve into year-end inventory numbers in SW Florida. Could this be a perfect storm for Southwest Florida home sellers?
We’ve been saying for quite awhile this may be the perfect time to sell your home as rates are low and inventory is low. Buyers have to compete against each other to win bids. In a normal market it feels like the buyer is competing against the seller and that’s just not the case right now.
As rates rise it will begin, albeit slowly, to price buyers out of certain price ranges. Ultimately this will begin the process of adding inventory to the market as there will be less buyers competing for each listing. It may force buyers down in price range and increase the number of buyers at the low end of the spectrum, but then again some buyers at the low end will be priced out completely, so that may wash.
We never know how many buyers become priced out. All we do know is that a 1% increase in rates equates to about 11% less purchasing power for any given borrower.
As you …read more
Source:: Top Agent