In my business I here this all the time, “Hey Rich, how’s the real estate market?” What you are really asking me is “How’s the market for me?” or, “Is it a good time for me to buy or sell?” So, before asking any follow up questions I usually respond with something like this, “The overall market is pretty strong right now. Median prices continue to rise, inventories in most segments are tight and interest rates remain historically low.” This is usually well received since most people associate these metrics with a healthy expanding real estate market. However, for some very specific buyers and sellers in our local neighborhoods this is an exceptionally good time in the real estate cycle.
Everyone Should Keep an Eye on Interest Rates
Interest rates will eventually go up and while most experts agree that higher mortgage rates won’t doom the entire housing sector, it could have a larger impact on the more expensive neighborhoods like Coral Ridge, The Landings and Bay Colony. As rates rise, the monthly cost of servicing a jumbo mortgage could push some marginal buyers out of our marketplace. The ultimate effect on median prices could take years, but keep an eye on those rates if you plan to buy or sell in the near future.
Many buyers who consider Northeast Fort Lauderdale for their next home already own property elsewhere and are “stepping up” into a larger property or perhaps something in a better location on the waterfront. If you are one of these buyers then now could be the perfect time to make that move. Chances are your current home is in a “hot” lower price range where inventory is even tighter allowing for a quick and profitable sale. Also, leaving your current low interest mortgage won’t hurt as bad while rates are still low and you can lock in an attractive long term fixed rate on your replacement property.
Empty Nesters and Retirees
If you plan to retire in the next few years or if the kids are going off to school and you just don’t need all that space then it might be the perfect time for a change of lifestyle. A popular move right now is to sell your single family home and purchase a condo or townhome with less upkeep. There are plenty of great new construction and resale options including units with dock slips and high rise condos on the beach with every amenity you can imagine. If you are not quite ready to make the move then consider purchasing a condo as an investment while the best buildings and good locations still have affordable inventory. The rental market is extremely strong so you should be able to cover most of your expenses while waiting to sell your home and move in yourself.