There are so many great things to see in South Florida. The beach…historic architecture…any number of cultural festivals…and arguably the most attractive group mortgage lenders in the world. It’s no surprise that the housing market is hot in this part of the world!
One thing in South Florida is much less caliente, however: The Miami Marlins. The Marlins were fortunate this weekend to clobber the only team in baseball worse than them, the Cincinnati Reds, raising their record to 13-20. Reach Home Loans would argue that the current housing market is different than our hometown professional baseball team in four major ways.
1. People want to get into homes.
A new home might be the hottest ticket in town, as more and more people are looking to make a purchase.
There were 618,000 home sales across the United States during February, which is up 0.5% from February 2017. Sure, that doesn’t seem like a huge bump, and in fact the total number of sales were down from January. That doesn’t mean demand for housing has gone down, however.
There was a huge spike in home sales during the second half of 2017, and those numbers are only going down now because there is a lack of houses to to fill the demand. Basically, if you can find a promising home, you need to be ready to compete for it. Being pre-approved for a mortgage is a great way to set you apart from other interested buyers, because it makes the closing process that much quicker.
The Marlins, unfortunately, have plenty of real estate to offer you. Their attendance is currently the worst in baseball, and the team made headlines when its Minor League feeder team—the Jacksonville Jumbo Shrimp—had higher attendance for an April game.
2. Homes are selling…and selling fast.
When homes are desirable as they are during 2018, you need to be ready to move quickly if you want to come out on top. The average closing time for homes so far during 2018 has been 81 days. Trust us: This is a quick turnaround.
Being prepared to close helps speed up the process. Again, if you are pre-approved for a mortgage and have your finances in order, sellers are going to be eager to work with you.
Hardcore Marlins fans would love to have the team turned around in 80 days. But we haven’t had a winning season since 2009…and it’d be optimistic to say hope is on the horizon.
3. The wealthy aren’t moving.
One demographic that isn’t contributing so much to the strong housing market? The wealthy.
Part of this is uncertainty on how proposed tax changes will impact the value of homes. For example, the National Association of Realtors estimates the the value of a $800,000 home will drop by $80,000 if the new legislation comes through. That means you’re risking a large amount of cash lost if you put a luxury home on the market. So if you’re looking to upgrade to a million-dollar home, you may want to wait before searching the market!
Some wealthy people are moving, however. Such as Giancarlo Stanton, who brought ESPN viewership to Miami even when the Marlins were struggling. He signed a contract worth $325 million to move to New York City.
4. Interest Rates Are Rising
Nervous about putting down the money for a new home? Millennials sure are. Many are not used to interest rates above 4%, and are holding out because of this. But here’s the reality of the situation: Those rates are going to go up before they go down, based both on history and the current economic situation.
Spending this much is intimidating, for sure. But it will benefit you to buy now while you can lock in the best rate possible.
The Marlins actually deserve some credit for this one. Derek Jeter helped buy the team during the offseason, and he wasted no time in overhauling the lineup. This meant trading more experienced players for young talent. It’s a risk, but he understands that standing still wouldn’t have helped the team at all this season. Here’s hoping it starts to pay off in 2019!