Monday, May 4, 2015 / by Tom Nickley
Last year we saw a strong buyer's market, but this year we are seeing a shift to a strong seller's market. This is partially because we've seen a drop in inventory levels and existing home sales have increased by 30% since this time last year. There is currently only a 3.5 month supply of homes on the market, and the average days on market is sitting right at 72 days.
This is certainly putting sellers in the driver's seat. Historically low interest rates are also helping sellers because it's encouraging buyers to go out and purchase homes. However, rates are expected to rise by the end of the year and this is pushing even more buyers onto the market because they're worried about losing out on a good deal.
This is all resulting in healthy increases in property values all across central Florida. On average, home values increased by 8.5% from March 2014 until now. Another 7-8% increase in values are expected this year as well.
This means that the market is actually going to be great for both buyers and sellers. Sellers are seeing unique conditions where if their home is priced right and in good condition, they can sell for top dollar and even get multiple offers. Buyers are taking advantage of historically low interest rates and loosened credit requirements. However, buyers absolutely need to be approved in order to buy the home that they like since the market is so competitive right now.
Even when buyers take a day or two to think about a home, we're seeing people coming in and purchasing that same home. This is how quickly the market is moving.
So, if you need help buying or selling this spring, please don't hesitate to contact me. It's a great time to enter the real estate market!