Market Slowdown? | Orlando Real Estate | Coffee Time Live | Amy Kidwell
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- Опубліковано 2 чер 2024
- Is there a market slowdown happening with Orlando Real Estate? Yes! And No! We’ll talk about it on Coffee Time Live with the #1 Agent in Disney’s Backyard, Amy Kidwell.
Plus Eric’s trip to Vermont, Dance News, New Listings and much more! See you at 9AM on Monday! - Розваги
It’s not the rates holding buyers back. It’s the over inflated value of properties in “your backyard”. The Feds want property values at 10-15% + or - pre Covid levels. Expect 2008 devaluations soon.
That is certainly happening in some parts of the country and could certainly happen here. But a 10% drop in price on a $500,000 home wouldn't do nearly as much for affordability as a 1% drop in the interest rate. The trick is that a 1% drop in the interest rate won't have the effect of dropping prices. It will likely have the opposite effect.
Let's say you have an 80% mortgage on that $500,000 home... you've got a $400,000 mortgage. Lowering the interest rate by 1% saves you $333/month. A 10% drop in the cost of the home means your mortgage is only reduced by around $200. So the rate is more important to most people. Let's also remember that part of the problem is that there isn't enough housing inventory. Because lots of people have 3% interest rates, they aren't moving... keeping inventory low and prices higher. Supply and demand is the most important factor.
It’s looking more like a 30-35% drop in value. It’s already dropped 10%. New construction drives the market, not only are they offering all these incentives, but they have also dropped their pricing 10%. Lennar has new pricing on their website reflecting this in all their Florida developments, every one of them.