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What do you think is going to happen? I started house hunting but am second guessing myself now with how insane prices are. Stuff has literally gone 2-2.3x up the last several years. But honestly I think demand is just too high here, and the older demographic people are moving here paying in cash, which I think will negate the affect rising interest rates should have on the market (higher interest rates won't curb demand from older demographics who are selling houses from out of state to move here).
But inflation could keep increasing quite a bit, which would mean a house could be a good investment and I could pay it off quick.
I'm dumb for not buying 2-4 years ago. Feel very financially behind now compared to peers. Not sure how I (and others) who aren't retired will be able to afford to live here if this keeps up, and I make better money than most in the area.
What do you think is going to happen? I started house hunting but am second guessing myself now with how insane prices are. Stuff has literally gone 2-2.3x up the last several years. But honestly I think demand is just too high here, and the older demographic people are moving here paying in cash, which I think will negate the affect rising interest rates should have on the market (higher interest rates won't curb demand from older demographics who are selling houses from out of state to move here).
But inflation could keep increasing quite a bit, which would mean a house could be a good investment and I could pay it off quick.
I'm dumb for not buying 2-4 years ago. Feel very financially behind now compared to peers. Not sure how I (and others) who aren't retired will be able to afford to live here if this keeps up, and I make better money than most in the area.
Who knows what’s going to happen? No one is the answer. Not the 10 year old kid playing at the park or the successful big shot realtor who sold 1000 homes the past 30 years. We are all equally oblivious to what will happen although some people think they know.
Too many variables in the economy to try and even predict what will happen with real estate. No one predicted the crash of 08’, Covid, or the boom that followed Covid.
A lot of real estate professionals feel they need to have some sort of prediction or opinion on the future to validate their relevancy.
Yes prices are up a lot. Yes there HAS been a huge demand for SWFL. That’s all we know as of today.
A lot of real estate professionals feel they need to have some sort of prediction or opinion on the future to validate their relevancy.
Yes, professionals are dumb and have no idea what's going on or any inclination of what will happen. let's take advice from the Van life dude living in the desert instead
What will happen in SW FL? Prices will begin to level by end of Summer. The rising interest rates will push out new buyers and move up buyers. You will see an increase in inventory from the snowbirds who are done using their place and ready to 'cash in now' as they feel they made the right decision not to cash in last year (and they are correct). Prices will continue to rise from now until probably Sept at a rate of about 2-4% per month, possibly more depending on the community.
Buyers right now are NOT looking to do any work to the home so if you are bidding for a home, avoid the beautiful, turn key, furnished homes with pools. Look for homes without pools (but where you CAN put one in later) that need some updating. There you will find no bidding and be able to get a discount off list price and perhaps even a small credit from the seller towards closing.
Are you behind the 8-ball, probably. But what are you ultimate goals? Just to stop renting? Start a family? Own a piece 'of the American dream'? Build wealth?
If its latter, why not get a 2 family home and live in the smaller unit and rent the larger to pay off your mortgage. If its to start a family, then obviously good school district will be important. Worry less about 'getting a deal' and more about 'can I live here with a child on the way (or 2) and not be forced to move out right away'.
Avoid popular new construction neighborhoods that are being bought up by Retirees and snowbirds (Isles of Collier being the most egregious example, but I know this Is a Ft Myers forum).
Make sure you have a good home inspector lined up so when you find something that needs work, make sure it doesn't need too much work . Avoid homes with 15year+ roofs, the insurance company will rake you over the coals. Better off finding a home needing an updated kitchen & floors vs a more updated home with an old roof. Going into Hurricane season, good luck getting a roof put on anytime soon.
Thanks for above info^^.
We're ready to pay cash but will wait until the market cools a bit being we don't need it for ourselves until we're snowbirds in three years.
Yes, professionals are dumb and have no idea what's going on or any inclination of what will happen. let's take advice from the Van life dude living in the desert instead
What will happen in SW FL? Prices will begin to level by end of Summer. The rising interest rates will push out new buyers and move up buyers. You will see an increase in inventory from the snowbirds who are done using their place and ready to 'cash in now' as they feel they made the right decision not to cash in last year (and they are correct). Prices will continue to rise from now until probably Sept at a rate of about 2-4% per month, possibly more depending on the community.
Buyers right now are NOT looking to do any work to the home so if you are bidding for a home, avoid the beautiful, turn key, furnished homes with pools. Look for homes without pools (but where you CAN put one in later) that need some updating. There you will find no bidding and be able to get a discount off list price and perhaps even a small credit from the seller towards closing.
Are you behind the 8-ball, probably. But what are you ultimate goals? Just to stop renting? Start a family? Own a piece 'of the American dream'? Build wealth?
If its latter, why not get a 2 family home and live in the smaller unit and rent the larger to pay off your mortgage. If its to start a family, then obviously good school district will be important. Worry less about 'getting a deal' and more about 'can I live here with a child on the way (or 2) and not be forced to move out right away'.
Avoid popular new construction neighborhoods that are being bought up by Retirees and snowbirds (Isles of Collier being the most egregious example, but I know this Is a Ft Myers forum).
Make sure you have a good home inspector lined up so when you find something that needs work, make sure it doesn't need too much work . Avoid homes with 15year+ roofs, the insurance company will rake you over the coals. Better off finding a home needing an updated kitchen & floors vs a more updated home with an old roof. Going into Hurricane season, good luck getting a roof put on anytime soon.
Hope this helps you out!
Marc you have the gift of gab I give you that. You’re entitled to your opinions and predictions but once again you don’t know what the market will do. If you did you would be 10 times richer then Musk and Bazos combined. All we can do is analyze the past. Or maybe I should have just bought a van that came with a built in crystal ball…… hmmmm.
The general public’s natural expectation when they ask a real estate professional what the market is going to do is to receive some sort of answer regardless of the validity of it. All you have to do is sound smart using the proper tone and pronunciation of your words and you have the halo effect working in your favor, once again regardless of the validity of it.
I am by no means a real estate expert but my guess is Florida real estate is not going to follow much of a downturn anytime soon. Some of the western areas that the Californians have fled to are starting to cool off as Florida continues to increase. The demand is too high and the supply is too limited.
Midwesterners and northerners aren’t the only ones filling Florida anymore, I’ve been seeing license plates from all over the country including Alaska.
Thanks for above info^^.
We're ready to pay cash but will wait until the market cools a bit being we don't need it for ourselves until we're snowbirds in three years.
If by "cools" you mean prices will go down, I don't see that happening. Flattening, yes. But not dropping absent some huge global economic shock. In my community in Gateway, every, and I mean every, home that has gone on the market in the last 12 months has sold for above asking price. Even houses that I thought had crazy high listing prices. Most went under contract in less than a week.
At least half of the sales have been cash deals. And at times, buyers are letting the sellers stay rent free for many months to help ease the transition when the sellers are waiting for their new home to close in Florida. People are not moving back north.
As for cashing out, snowbirds are cashing out, but not cashing out of their homes in my community. They are cashing out of their northern home and now becoming full time Florida residents. The people who are cashing out are individual landlords who moved out years ago and held on to their properties and rented them out. They are now cashing out and selling to new owners who will live there.
Pool homes definitely sell for a premium, but not as big a premium if you were to build a pool, spa, lanai, and enclosure from scratch. Not even close at today's prices. Plus, there is an 18 to 24 month backlog to get a pool built. A lot of new home builders are selling houses with no pool because it just takes too long to get one installed and they do not want to sit on a finished property waiting for a pool. So if you want a pool, buy a house with a pool, now! And just an opinion, I can't even think of what it would be like without our pool, spa, and large enclosed lanai. Even in the winter.
If by "cools" you mean prices will go down, I don't see that happening. Flattening, yes. But not dropping absent some huge global economic shock. In my community in Gateway, every, and I mean every, home that has gone on the market in the last 12 months has sold for above asking price. Even houses that I thought had crazy high listing prices. Most went under contract in less than a week.
At least half of the sales have been cash deals. And at times, buyers are letting the sellers stay rent free for many months to help ease the transition when the sellers are waiting for their new home to close in Florida. People are not moving back north.
As for cashing out, snowbirds are cashing out, but not cashing out of their homes in my community. They are cashing out of their northern home and now becoming full time Florida residents. The people who are cashing out are individual landlords who moved out years ago and held on to their properties and rented them out. They are now cashing out and selling to new owners who will live there.
Pool homes definitely sell for a premium, but not as big a premium if you were to build a pool, spa, lanai, and enclosure from scratch. Not even close at today's prices. Plus, there is an 18 to 24 month backlog to get a pool built. A lot of new home builders are selling houses with no pool because it just takes too long to get one installed and they do not want to sit on a finished property waiting for a pool. So if you want a pool, buy a house with a pool, now! And just an opinion, I can't even think of what it would be like without our pool, spa, and large enclosed lanai. Even in the winter.
I agree 100% on what you’re saying but I somewhat disagree on the pool. I’m an avid swimmer and so are my kids, I’m also a CPO. Never wanted a pool in my own backyard. Most residential pools around here (to me) are too small to even be worth trying to swim in.
You still got 8 years of Boomers retiring so then demand is going to soften too much, at least in Collier. Interest rates, if the get high enough, will dampen demand for those who need loans. Cash is KING.
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