The housing market can turn on a dime, but it can also experience a slow squeeze. This is one big uncertainty real estate professionals are looking to answer.
In a recent release, NAR’s Chief Economist Lawrence Yun said higher mortgage rates have increased the cost of purchasing a home by more than 25% compared to 2021. Yun equates the higher mortgage payments to be up to $500 more per month for borrowers.
From May to June, Tampa saw roughly a 30% increase in active listings. This jump could be another indicator of market shift.
We are also seeing trends of listing prices beginning to fall on a national level. 19% of homesellers dropped their listing price during the four-week period that ended last week. This accounts for the largest number of sellers to do so since pre-pandemic times in October 2019, according to Redfin.
Just last week we saw Google Searches for the term ‘housing bubble’ begin to spike, hinting that prospective buyers could be feeling the pressure of rising interest rates and are anticipating home prices to fall. However, this does not necessarily trigger a decline in home prices.
“In today’s housing market, demand for homes continues to outpace supply, which is keeping the pressure on house prices, so don’t expect house prices to decline,” said First American Chief Economist Mark Fleming.
Economists at Fannie Mae expect national home price appreciation will slow down but remain in the double digits until 2023.
Between home appreciation and rising mortgage rates, many prospective homebuyers are feeling the heat. 74% of Americans say that owning a home is a more significant measure of achievement than having a successful career or even raising a family, according to a survey from Bankrate.com. About 58% of adults in the U.S. said they would be willing to make concessions such as moving to a cheaper area or buying a fixer-upper in order to find housing that is more affordable, according to another survey conducted by Bankrate.com.
Close to home we are seeing some of the highest growth in Tampa’s apartment market. The newly built 390-unit Novel Midtown sold for a record-breaking $236.4 million. This is the first time in the city’s history an apartment property sold for more than $500,000 per unit. The local apartment demand has been driven up due to job creation and population growth.
As an active and engaged GTR member, I would like to take this opportunity to remind you that the search is now on for candidates interested in serving as GTR Directors in 2023. This opportunity allows you to collaborate and share your knowledge with other GTR influencers and make a lasting impact on our industry. I encourage all of you to take the time and apply now.
