With interest rate changes, real estate experts see a change in the local housing market
PANAMA CITY, Fla. (WJHG/WECP) – Real estate companies in Florida have struggled to keep up with demand from people wanting to buy homes.
Now, local property experts say that’s starting to change.
“The days when homes stay on the market are several days longer,” said Think Real Estate agent Jamie Sheehan. “You know, six months ago you had four, five, six offers on day one, whereas now we have a few more days with one offer and that just gives the buyers a little more power.”
Local property experts also say the area is trending towards a buyer’s market.
“We’re slowly going to see it go where buyers have the power because there will be so many listings and not enough buyers,” said Lindsey Maxwell, senior lending consultant at Movement Mortgage.
Higher interest rates are forcing some buyers to rein in going over the asking price.
“Obviously with rising interest rates the demand curve is coming down and so we’re going to see people give up on buying a home a little bit just because of rising interest rates. interest,” Maxwell said.
Rising interest rates have an impact on the price of the house.
“Mortgage rates are long-term interest rates where Fed interest rates are based on short-term buying and selling between banks,” Maxwell said.
However, experts say real estate in the area will stagnate very little.
“We have so many military here,” Sheehan said. “We have so many jobs opening up as Tyndall grows. I don’t think people will just stop buying here.
There are a few key points to remember if you’re interested in buying a home in today’s market.
“Buyers, what they need to look for is not just the interest rates, but the fees charged by the mortgage lender, because right now the mortgage lenders are hedging those interest rates because they’re anticipating the market upside,” Maxwell said.
Maxwell also said lower rates can sometimes result in higher fees.
Sheehan said it’s okay to wait for interest rates to stabilize if you’re also hesitant.
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