Leugers Group - Brokered by eXp Realty

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"To raise the bar in our society by rendering life-changing high value service that saves the people we serve time, money and frustration."

Wednesday, September 3, 2014

Southwest Florida Market Snapshot for August

There are many great Gulf Coast Area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Value Report so you know what buyers will pay for your home in today's market. You may also call me at (239) 344-7571 for a FREE home buying or selling consultation to answer any of your real estate questions. 

As the summer winds down, a slowdown in the market is to be expected. However, a recent national report shows that there is some good news:
  • Annual home price gains: Last year we saw home prices jump 6.8%, as the market was booming. Year-to-date we've seen a more normal 3% gain, which is a good sign of a stable market. 
  • Interest rates: You can still get a 30-year fixed-rate mortgage for 4%-4.25%. But top economists are not expecting this to last.
  • Existing home sales: We saw existing home sales come up in the summer. In fact, every price range saw an increase in home sales except the $0-$100,000 price range.
  • ROI in real estate: Real estate still appears to be one of the safest investment opportunities - the report found that return on investment in real estate is 70.6%. Investing in NASDAQ and the S&P will only get you a return of 10.5% and 38%, respectively.
These trends are great signs for the market. Right now, buyers have a lot of purchasing power. However, top analysts don't expect this to last long. For example, if you're looking to spend $1,000 a month on a mortgage, you can currently afford a $200,000 home. But if interest rates rise to 5% by next year, as they're expected to, you'll only be able to purchase a home for $180,000 - and this doesn't even take rising home values into consideration!

As you can see, conditions are great if you're considering purchasing a home. If you're ready, there is no reason to wait. If you have any questions about conditions in your specific area, or want to make a move, shoot us an email or give us a call. We would love to help you out!