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The FED
Plans to Lower Interest Rates Soon
There is a pent-up
demand for homes waiting until interest rates come down, remember that during
the COVID Pandemic when interests came down home prices almost doubled in under
three years.
I think home
prices will go up in Broward County, FL when interest rates come down, maybe not as much
as during the pandemic but nonetheless by a substantial amount.
The same holds true for Commercial Properties, the appreciation rate surpasses that of most of the other Counties in the country.
Why is now the right time to buy my home in south Florida?
Interest rates are high now although they are expected to come down in 2024 you can always refinance when interest rates
come down, as a rule of thumb it will be worth it to refinance if interest rates
drop 2% or more from your current interest rate, talk to your bank or mortgage
broker about this.
When interest
rates were low homes in South Florida and in most of the country homes went up in price considerably, it's easy to see why:
For a $250,000
Home every 1% drop in interest rates will save approximately $40,000 over the
duration of your 30-year mortgage, and that is what just happened!
For a higher price rate extrapolate the numbers for example the savings on a 1% interest drop in $500,000 loan will be approximately $80,000 over the 30 year life of the loan.
What do you think will happen to home prices once interest rates drop? I personally think that they will go up just like they did in recent history!
But why prices don't come down proportionally when interest rates go up. What happened to What
goes up must come down?
What do people that bought during High Interest time periods think?
In the 1990's interest rates were around 10%, when you ask those people that bought during those high interest rates times if they did the right thing most of them say yes because home prices kept going up and as added plus they were able refinance at a lower rate sometime later.
For those buying cash you're likely to get a better deal during high interest times, sellers know that they can count on the house to close when you are buying with cash while sometimes financing falls through at the last minute.
Some Reasons for The High Prices in Homes in South Florida
There could be several reasons why homes
in South Florida are not coming down in price. Here are a few:
High demand:
South Florida is a desirable location for many people due to its warm climate,
beaches, and recreational opportunities. The demand for homes in the area may
be consistently high, which can keep prices stable or even drive them up.
Limited supply: If the supply of homes for sale in South Florida is not keeping up with the demand, it can lead to higher prices. Factors such as land scarcity, zoning restrictions, or a lack of new construction can contribute to a limited housing supply.
Retirement
destination: South Florida is known for being a popular retirement destination,
with many retirees seeking to enjoy their golden years in a warm climate. This
demographic trend can sustain demand for housing and keep prices relatively
stable.
Foreign
investment: South Florida has attracted significant foreign investment in real
estate, particularly from Latin American and European buyers. These
international investors may view South Florida as a haven for their money or an
attractive place to own a vacation home, which can contribute to price
stability.
Economic factors: The overall economic conditions in the region, such as job growth, income levels, and business opportunities, can also influence home prices. If the local economy is strong and thriving, it can support higher home prices.
In the period of from 2018 to 2023 Residential Real Estate Prices increased by a whopping 20 % per year or close to 100% by 2023.
Is as though the world has taken notice and everyone wants to move to Fort Lauderdale and nearby cities!
Going with a very conservative appreciation rate for Homes of 3.5% per year you can expect a $500K Home to appreciate to:
5 years $594K
10 years $706K
20 years $1 Million
Due to low interest rates
and other issues home values in Broward County FL increased by at least 20% in
2021, so as you can see this is a conservative estimate of future value, we
might get another interest rate decrease soon, we’ll have to wait to see how
the home market will react, it is impossible to predict the future, we can only
look back.
How to Get Ready to Buy:
Click Here to See Fort Lauderdale Homes for Sale
If you want me to work for you, or you want a list of Homes the Available Text me at
954-648-6095
Thank you for the trust placed in me,
Antonio Ortega LLC
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