The reason why selling your home may be the best strategy, even though the market is booming

The reason why selling your home may be the best strategy, even though the market is booming

The national residential real estate market and the Florida market remain strong. Almost all indicators prove that. However, the strength of the market is extremely unpredictable because the US economy is uncertain due to rising inflation, interest rates, and a considerable number of investment real estate projects have started experiencing problems.

Sooner or later, global economic problems will reach out the housing market, so it is worth considering selling your property while being on top.

According to the US Census Bureau, at the end of March 2022, the number of new construction projects reached a seasonal level of 1,873,000 units in the country. It is 0.4% higher than in February and 6.7% higher than a year earlier.

Single-family detached homes fell by 5%, but multi-family homes grew. The main reason for this was that many high-rise housing projects were delayed in 2020 and 2021 due to the pandemic. This offer is returning with the growth of the rental market.

The problem is that the current volume of new homes has been significantly reduced compared to the planned volume because of the problems with supply chains and production processes connected to the pandemic and now with the geopolitical situation.

There are too many buyers and too few properties for sale. Prices are growing higher and higher, forcing many people to look for an alternative, either in the rental segment or in mortgage lending. However, with rising interest rates, inflation and overheating of the rental market, those options available to people a year ago, have now become scarce.

However, the problems that can be caused by the described factors are the problems of the future. Today, according to monthly new home sales data by the Census Bureau, the market continues to heat up. The number of sales decreased by 12.6%, dropping to 763,000 sold units in annual terms. But, at the same time, median prices rose to $436,700. This means that the total number of buyers is declining, but buyers who remain begin to frantically rush to purchase properties while the conditions are still quite attractive.

The shortening of the sales window proves that. As a result, two-thirds of the new offer is sold out within the first 30 days from the moment it enters the market. About half of residential properties are sold within the first 12 days.

Thus, Florida has a very hot market. It rises with huge demand and scarce supply in a country when the economy is going through hard times. The available options for buyers and renters are shrinking. So buyers start to rush to purchase and invest while inflation and interest rates are still in a fairly comfortable zone.

The state market will face the effects of overheating with a noticeable price correction. So, now may be the best time to sell before the peak is passed.

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