Will the Red-Hot Housing Market Cool Off Anytime Soon?

Red-Hot Housing Market Cool

To the surprise—and relief—of many Floridians, the COVID-19 pandemic did little to quell the motivations of home buyers AND sellers. In fact, home prices went soaring, as buyers showed few signs of delaying their purchases, partly buoyed by historically low interest rates. 

Vaccines are now going into arms. The economy is slowly coming back, COVID-19 variants notwithstanding. And, the Federal Reserve is poised to raise interest rates sooner or later (perhaps not until 2023). 

Many would-be sellers currently on the fence about selling could be persuaded to finally put their houses on the market. In March 2021, the Fed indicated that it would probably keep the interest rates near zero throughout 2023. Just a few months later, it revised its outlook due to unexpectedly strong economic numbers. Amid fears the Fed would again move up the date to raise interest rates and home values would plummet, more homes are going on the market. 

However, home values might decrease regardless of the interest rates. As more sellers unload their properties, others might fear that asking prices will level off. More homes on the market inevitably lead to decreased home prices, and sellers want to catch the crest before it breaks. 

Foreclosure Moratoriums Ending Nationwide

Demand for houses might be met through other means, as home buyers no longer have the federal foreclosure moratorium to protect them. Starting in early August, a huge wave of deferred debt began crashing down on millions of American homeowners. They can expect some federal aid, but there have been significant delays in the aid’s delivery. As a result, foreclosures will continue to increase. 

These two components of the housing market (and plenty of others) mean that now might be the best time to put your house on the market. The gap between supply and demand for houses will shrink in the near future, and it may shrink rapidly. Getting the most for your house could hinge on the speed at which you are able to put it on the market. 

Having an Experienced Law Firm Makes All the Difference

Salas Law Firm features legal professionals with deep experience in Florida real estate transactions and related matters. We understand the stresses the prospect of a foreclosure brings. While there is absolutely no shame in experiencing a foreclosure, we can help you find and execute alternatives that may be better for your long-term financial well-being.

If you expect to buy or sell a house in the near future, we would be honored to represent you. Real estate transactions are high-stakes and relatively complex. Through diligent representation, we can help you avoid costly mistakes during the process. Contact our team today to set up your initial consultation.

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John Salas