Florida residents who are thinking about putting their homes on the market should wait until May to do so. This is according to an analysis conducted by Zillow of 24 real estate markets across the country. The month of May was the best time to sell in 14 of those markets. One reason why this was the case was because there are fewer homes available for sale in the beginning of the spring season.
Many people in Florida view home ownership as a path to stability and an investment in their futures. In recent years, competition has forced people to exceed their budgets to get the houses that they desire. Compared to a year earlier, the S&P CoreLogic Case-Shiller home price index showed a 6.2 percent increase home prices for January 2018. Strong employment figures and a shortage of listed homes represent the main culprits forcing buyers into bidding wars on homes.
According to the National Association of Realtors, new home sales rose 3 percent in February after falling in December and January. Sales were up in states such as Florida in the South. Sales were also up in the West while falling in the Northeast and Midwest. However, the overall increase for the month is seen as a sign that the home market will be competitive heading into the spring months.
New home sales dropped 7.8 percent nationally in January to 593,000 units sold when seasonally adjusted. In the South, there was a 14.2 percent drop, and that includes states such as Florida. The Northeast saw a 33.3 percent drop in sales during the month of January. These two regions account for most of the new home purchases in the country. However, sales actually rose 1 percent in the West and 15.4 percent in the Midwest.
People who are considering buying a home in Florida may need to contend with higher mortgage interest rates. The average rate for a 30-year fixed-rate mortgage was 4.38 percent in mid-February, which is the highest since April 2014. Mortgage rates generally increase in step with the 10-year Treasury notes, which are also trending higher. This is because investors are seeking higher returns as inflation picks up.
Being married and owning a home are both large commitments for a Florida couple to undertake. However, some people seem to be more willing to take on the housing project as opposed to tackling a marriage. While buying a home may seem easier than sharing a life together, it may actually be easier to get out of a marriage if things go bad.
Millennials in Florida, individuals who were born between 1981 and 2001, may list affordability as one of the main issues that determine whether they may own a home. Just 39 percent of millennials can afford the 20 percent down payment that is often necessary to obtain a mortgage. Even though there are other ways to obtain a mortgage that may not require a substantial down payment, it is important that millennials know exactly how big of a house they can afford before starting the home-buying process.
Florida residents who are in a long-term relationship may find that its not uncommon for unmarried couples to buy homes together. In fact, a report from the National Association of Realtors found that 16 percent of first-time home buyers in 2017 were unmarried couples. That is the highest level since 1981. However, there are steps that may need to be taken to reduce any possible consequences should the relationship go bad.
According to the Commerce Department, there were 667,000 new homes sold in September 2017. This surge, which was the highest figure since October 2007, could influence how Florida residents and others approach buying their next home. Newer homes are popular among those who aren't able to find affordable existing properties. However, builders are increasingly trying to create more expensive homes, which may further price out those who have a limited budget.
An interview with a chief economist from PNC Financial Services has revealed insights about how the Republican federal tax law changes could influence the residential real estate market. The economist explained that the $750,000 cap on mortgage interest deductions and the $10,000 cap on state and local tax deductions would increase the ongoing costs of homeownership for high-end, luxury properties.