Although interest rates have relented just a bit over the last week, Freddie Mac’s 30-year fixed mortgage sits at 7.76% as I write today. I try to be optimistic with regards to the interest rates as they usually do go up and down, and the real estate market fluctuates accordingly, but I am beginning to feel a slowdown of sorts.

October ended with the median selling price of a home being $349,000, up just a tiny bit from $340,000 in October 2022. It took sellers here in Central Florida a median of 21 days to sell their homes in October, which is up from just 12 days in July. To be transparent, it is down from 43 days back in February, but that was inflated from sticker-shock from rising interest rates, which we’ve all become accustomed to these days.

The FED opted to avoid raising interest rates for the second consecutive month. Perhaps this is cause for optimism, but it may also be related to confusion about what to do to keep the overall economy stable. Despite all their interest rate hikes, unemployment is still ultra-low, and the stock market is on fire, neither of which is cause for the FED to pause interest rate hikes.

Data is great, I absolutely love it. It helps to keep me thinking clearly and avoid thinking emotionally about what is happening to our local and national real estate market. I try to avoid the evening news, understanding that drama is what they’re selling. I also believe that one month’s data should not be used to make long-term decisions.

However, what I see TODAY is a slowing market. Perhaps it’s just another blip and I’m overreacting, but my listings are taking longer to sell, and the activity level has decreased. Sellers are beginning to lament the lack of showings and offers; despite the increased dollars I’m spending to market their properties. I have freed myself from a couple unrealistic sellers and their unrealistic expectations, clinging desperately to memories of an on-fire real estate market that ended in spring, 2022.

Do I have a sense of uneasiness? Yes, I do. However, just yesterday I worked on a new YouTube video, during which time I was reminded that buyers and sellers should buy and sell when it is the right time for them.

A home’s equity should not be used as an ATM or tossed about like a stock on the New York Stock Exchange. They should buy and sell when they NEED to do so and then plan to stay in that home for a minimum of three to five years. Doing so provides a good likelihood of gaining equity, growing their personal wealth and as a hedge of protection against down markets.

As such, if you need to sell, do so. However, do so with an understanding of TODAY’S real estate market, which as I noted earlier has shown stable prices. Is it a good time to buy? It might be. Back in 1981 buyers made a killing with interest rates well over 16%. These buyers bought in a low-demand market because of these high rates, then simply refinanced into lower rates when the interest rates fell. Don’t let anyone tell you when it is the right time for you to buy or sell. Consider your needs and the consequences for doing so to make an informed decision.

If you have questions or concerns about buying or selling in today’s market, please feel free to contact me and I’d be happy to discuss it with you.

Published on November 03. 2023 / no comments.