Perhaps so! This just in from Frank Christiano, one great local community lender at
Contrary to what we’re hearing in the media, I believe the market has officially shifted to a buyer’s market in most, if not all of South Florida. I personally keep a close eye on the Real Estate data and after reviewing the numbers for the month of March, I believe the market has shifted in the buyer’s favor.
In Palm Beach County for the month of March, there was an increase in inventory of 9.1% from the previous month. And while there was a little over a 10% increase in the number of homes sold, 78% of the 1,814 homes sold below the original list price. In addition to the increased inventory, the average number of DOM jumped from 51 days to 57 days, a 12.6% increase.
Interest rates have clearly had an impact on the market here in South Florida and it’s important we educate potential buyers that this is a GOLDEN opportunity for them to capitalize! The fed is scheduled to meet at the end of May and the probability is we’re going to see our first rate cut of 2024 which could entice some buyers to tiptoe back into the market.
In a recent article in Newsweek (LINK BELOW), Moody's Ratings' experts said they believe mortgage rates will come down in the next 12-18 months. The financial research company is currently estimating that mortgage rates will remain higher "than the extremely low levels during the decade of aggressive central bank stimulus that preceded the past two years" in the coming months but will likely reach around 6 percent or somewhat less by the end of 2025.
If this prediction is accurate, I think you’ll the market ABSOLUTELY explode as new buyers will flood the market and sellers who have been waiting for rates to drop so they can list their house and purchase something bigger, will rush to get their home on the market. At that point, we could be back in a multiple offer environment which would in-turn potentially push prices back up once again.
Bottom line, if by definition we’re not officially in a buyer’s market, we are knocking on the door. Here’s the takeaway: If you have buyers who are on the sideline waiting for rates to drop, it’s important for us educate them on the opportunity they have in today’s market to purchase something at a discount with minimal competition. Once rates start trickling down, the market could potentially shift right back to a seller’s market.
The Best is Yet to Come!
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