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Will home prices drop in 2023 in Florida?

Tue, 12 Sep 2023 20:00:12 GMT

Is 2023 the Right Year to Buy or Sell a Home in Florida? Understanding the Current Market

Deciding whether it's the right time to buy or sell a home is a challenge many potential homeowners and investors grapple with. The real estate market is ever-changing, and it can be tough to predict its future trajectory. The question on everyone's mind right now: Will home prices drop in Florida in 2023? When does real estate become a good investment, and how do you determine the perfect time to enter or exit the market? In this article, we delve into the details and provide a clear perspective on the Florida housing market this year.

Florida's Housing Market: A Mix of Stability and Pressure

We anticipate that home prices will remain relatively stable in Florida throughout 2023. Despite global uncertainties, Florida continues to be a hotspot, attracting a consistent influx of new residents due to its inviting climate, vibrant culture, and quality of life. However, there's no denying that the rising interest rates are starting to put some pressure on the market. With inventory levels hovering between 1 1/2 to 2 months, there's a limited supply which often fuels price stability.

High Interest Rates: A Silver Lining for Buyers

The prospect of high interest rates might seem discouraging at first, but here's a silver lining for potential buyers: even with higher rates, now might be an excellent time to buy. Here's why - once you lock in a mortgage rate, it remains static. This means that if interest rates continue to rise in the future, you'll be secured at your current rate. And, if the rates drop? You always have the option to refinance. So, rather than waiting on the sidelines, there's merit in securing a home now and potentially saving in the long run.

Consult with an Expert: Meet Carole at Gardner Mortgage Group

Before taking the leap into homeownership, it's crucial to be fully informed about your financial situation. This is where mortgage loan originators (MLOs) like Carole at Gardner Mortgage Group can be invaluable. By consulting with Carole, you can get a comprehensive understanding of how much you can afford, ensuring you don’t overstretch your finances. Plus, with a pre-approval in hand, you'll be in a strong position to negotiate and secure your dream home in the competitive Florida market.

Ready to Dive into the Florida Housing Market?

If you're contemplating buying a home in Florida this year, don't navigate the tricky waters of real estate alone. Contact Carole at Gardner Mortgage Group today and ensure you're making the best decisions for your future.

Refinancing Your Mortgage | PROs, Cons, Impacts, and Choice

webeducationservices@gmail.com (Justin Babcock) — Fri, 15 Oct 2021 20:42:20 GMT

If you haven’t refinanced yet, is it still worth it?

Original Source: housingwire.com

Mortgage rates vary. Take the pandemic, for example. Interest rates were at an all-time low last year, which is why the housing market saw such a spike. Consumers took advantage of those low rates. Some purchased a new home and others refinanced their mortgage.

According to Freddie Mac , borrowers saved thousands in 2020 by refinancing. But as the world slowly gets back to normal, mortgage rates have slowly been rising. In recent weeks, however, Delta variant fears have been fueling a dip in rates. Is there still time to take advantage of low rates and refinance your home? Keep reading to find out.

Pros and cons of refinancing

Refinancing means taking out a new mortgage loan and replacing it with your current one. One of the reasons why people refinance is to obtain a lower interest rate. With a lower interest rate, homeowners pay less in interest and can even shorten the length of their loan.

While refinancing can be a good way to build equity and manage debt, it can cost money – anywhere between 3% to 6% of the amount of debt you still owe on your current loan. So while you might eventually save money from refinancing, you’ll also spend money on closing costs. For example, to refinance a mortgage you’ll have to pay an application fee, appraisal fee and maybe even attorney fees depending on where you live. There’s also a chance your lender will require another title search and title insurance, which would add to your costs.

Not to mention, If you’re planning on moving, you probably shouldn’t refinance. You also want to make sure the long-term costs won’t be more expensive than potential savings.

Impact of delta variant

With worry surrounding the highly contagious Delta variant, some states are mandating masks again. In fact, some countries are even shutting down their borders in an attempt to slow down the spread. While it’s too early to know the impact this variant will have, if it’s similar to the impact of the COVID-19 pandemic, the housing market might see another surge. And interest rates could take a deep dive again.

Should you refinance?

Even though experts believe mortgage rates will rise in 2021, rates are still historically low. If you’re locked in a higher rate, it may be worth talking with your lender.

If you are refinancing, buying a home, or thinking about buying in the next 5 years. Subscribe to our blog and stay up to date about changes in the market that effect buyers. Or contact us to learn more about applying for a mortgage.

Millennials Are Losing the Bidding War

webeducationservices@gmail.com (Justin Babcock) — Fri, 15 Oct 2021 20:39:08 GMT

Millennials struggle to compete with boomers for homes

Original Source: housingwire.com

Young people make up a smaller share of recent homebuyers than in previous years most likely due to the increased market activity of baby boomers, a new Zillow report published on Thursday found.

It’s hardly breaking news that the demand for housing has drastically increased over the past 18 months, but the report suggests that this has more to do with demographic trends than the pandemic. Overall, however, individuals aged 30 and older, across all age groups, were buyers at higher rate than those in the same age group a decade ago,

In the past decade, as more and more millennials have aged into their peak home-buying years, Americans aged 60 and over have been more active in the housing market than those of the same age 10 years prior. From 2009 to 2019, the share of recent buyers who are 60 years and old grew 47% , while the share of recent buyers ages 18-39 fell by 13%. In addition, the median age of a homebuyer who completed their purchase within the past year rose from 40 in 2009 to 44 in 2019.

Over the same time period, home values grew 31.2%. In the past two years, prices have grown an additional 22%, which should come as no surprise, as more than half of homes sold this past July went for above list price and there appears to be no end in sight, as Goldman Sachs predicts that home prices will rise another 16% in 2022.

These drastic increases in price, mean that longtime homeowners have seen massive equity gains, giving them more cash to use toward a potential new home, giving them an advantage in a bidding war against younger buyers who may be trying to purchase their first home. All cash offers are more common among repeat buyers than first time buyers and a survey of Zillow Premier Agent partners found that all-cash offers are the top strategy for winning a competitive bid.

“Whether downsizing or moving to a new town, baby boomers being more active means competition that previous generations did not have when buying their first home,” Jeff Tucker, a senior economist at Zillow said in a statement. “And older buyers have the advantage of a lifetime’s worth of savings and home equity to leverage in a competitive offer.”

In addition to struggling with rapidly rising home prices, over half of non-homeowning millennials (60%) report that student debt is making it harder for them to purchase a home.

Compounding these generational struggles is the construction slowdown that came out of the Great Recession. The resulting housing shortage has only worsened over the course of the pandemic as homebuilders have faced supply and labor shortages.

Together, all of these factors suggest a likely reason why the share of buyers who were buying their first home has dropped from 46%in 2018 to 37% in 2021.

“Even before the pandemic, the largest-ever generation entering their 30s and the hangover from more than a decade of underbuilding were on a collision course set to define the U.S. housing market,” Tucker said in a statement. “The pandemic supercharged demand for housing, bringing the shortage into relief sooner than we expected, as millennials sought bigger homes with Zoom rooms, and older Americans accelerated retirement plans, spurring moving decisions.”

However, there was some positive news in the housing market report, as it found that younger buyers are seeing more luck in less expensive markets such as Buffalo and Salt Lake City where buyers aged 18-39, made up 57% and 56% of all recent buyers, respectively. A notable exception is tech mecca San Jose, where 54% of 2019 buyers were aged 18-39.

FHFA 2022 Loan Limit Speculation And Lender Limit Changes

webeducationservices@gmail.com (Justin Babcock) — Thu, 14 Oct 2021 22:25:49 GMT

Nonbanks are hiking conforming loan limits

Original Source: housingwire.com

Earlier in the month, PennyMac Financial and United Wholesale Mortgage publicly announced that they are each raising their conforming loan ceilings by 14%, nearly two months ahead of the Federal Housing Finance Agency ‘s official decree. They’re not the only ones getting a jump on new conforming loan limits.

Rocket Mortgage and Homepoint announced last week that they are also upping their conforming loan limit to $625,000 for a one-unit property.

According to a letter Homepoint sent to its mortgage broker partners last Thursday, the new loan limit – a $75,000 increase from the current maximum loan limit, as dictated by the FHFA – will go into effect this week.

Phil Shoemaker, president of originations at wholesaler Homepoint, noted that the Michigan-based lender decided to up its loan limit due to “the significant appreciation we’re seeing in home prices throughout the country.”

Shoemaker added, “We wanted to move quickly to support this market so that our mortgage broker partners can be at the forefront of providing greater housing affordability to borrowers in their communities.”

Rocket Mortgage made the same announcement last week.

Bill Banfield, executive vice president of capital markets at Rocket Mortgage, said the loan limit that nonbanks seem to be coalescing around is in “recognition that home prices have been going up quite a bit.”

“We anticipate that the limit will come in at $625,000, but could be higher depending on the third quarter results,” he said.

Furthermore, PennyMac announced another change last week, hiking their conforming high balance loan limit to $937,500 in high-cost areas, up from a limit ranging between $724,500 and $822,375 for a one-unit property in select areas.

“We are pleased to support borrowers in 60 high-cost counties throughout the country by offering these expanded high balance limits through our national network of broker and correspondent partners,” said Kimberly Nichols, senior managing director of broker direct lending at PennyMac.

The FHFA is expected to announce the new conforming loan limit sometime in November. But for now , the 2021 baseline national conforming loan limit for a one-unit property is capped at $548,250.

Meanwhile, a former FHFA official told HousingWire that nonbanks are likely uniting around $625,000 because they have inside information from the agency.

“It would be hugely risky to announce that they were raising their conforming loan limit without having the enterprises to offload those loans to, they’d have no choice but to hold them in portfolio if say Fannie Mae didn’t raise its conforming loan limit to the new number,” he said.

And while nonbanks have been chatty about their intentions to up the loan limit, depositories have been silent on the matter. Wells Fargo , Chase and Flagstar Bank did not respond to requests for comment.

If you are refinancing, buying a home, or thinking about buying in the next 5 years. Subscribe to our blog and stay up to date about changes in the market that effect buyers.