“Should I wait to buy a house now?” This is the biggest question I get asked right now.
With fears of recession, stagflation and inflation on everyone’s mind I can understand the angst.
To those buyers pausing/hesitating, this is a number to watch: construction of multi-family homes (mostly rentals) rose by 15% in June! Translation: as fewer people buy, renting is their only alternative, so those rents climb delivering better returns for landlords and developers…..then once the buying markets come back and fewer single family homes and condos have been built, those prices could climb even further and faster as supply has not kept up with demand.
Sales of previously owned homes in June fell 5.4% from May, according to a monthly report from the NAR, the slowest sales pace since the same month in 2020, when sales dropped very briefly at the start of the pandemic. The median price of an existing home sold in June set yet another record at $416,000, an increase of 13.4% year over year.
Should I buy a home in Florida right now?
56% of respondents to a new OnePoll study commissioned by Lower believe that “right now” is the time to buy a house. The survey compiled responses from 1,000 homeowners and 1,000 renters, finding that 55% of respondents claim ongoing record-high inflation has made them want to buy a home even more. 47% of that group said they aim to get one in the next year. 74% said it would be their first time buying a house. 26% were existing homeowners.
Everyone needs to determine there own financial standing when making major life or investment decisions. Sometimes even when the sky looks like it’s falling, that is the time to make long term sound financial decisions. The economic standard or supply and demand always rings true. If there are less homes to buy and less being built for the future, prices will most likely continue to rise with the short supply.
If you want to take a look at what is available in your market, give me a call.
Bryce Burton
Cell: 757-617-7441
Team JK | Compass
Should I buy a home right now?