Friday, September 24, 2021 / by Jordana Tobel
Interest Rates Are Rising! What Does That Mean For You?
As you may have heard, the Federal Reserve may start reversing its pandemic stimulus in November and interest rates will most likely rise.
But what does this mean for you if you’re looking to buy or sell in South Florida.
Let’s start with some basics:
The current housing boom will most likely flatten in 2022 when interest rates rise. Note the word flatten. Prices will not
go down, there is simply too much demand. We are NOT in a real estate bubble; a bubble is rising prices that aren’t
justified by fundamental economic factors such as demand. That is NOT what we are experiencing today.
In South Florida, with our warm climate, our beautiful coastline, and tax benefits, more and more people are moving
here every day. Many of those individuals have realized they can work from home and are no longer tethered to a
particular city.
The latest stats from snntv.com indicate that nearly 1000 people move here every day and many are coming from
northern states like New York, New Jersey, and Connecticut. According to move.org, Florida was the most moved to
state in 2020.
Now, let’s talk about YOU:
If you’re a seller, prices may retreat from panic-buying highs. Now is the time to sell and take advantage of the high
demand.
If you’re a buyer, take advantage of today’s low rates while you can. It will not only impact your monthly expenses; it will
also affect your buying power.
Take a look at the chart below to illustrate this point:
Contact your Premier Listing Associate today for details on our unique listing features as well as how we can help buyers secure the homes of their dreams.
Contact your Premier Listing Associate today for details on our unique listing features as well as how we can help buyers secure the homes of their dreams.
