What’s Up With All The “For Sale” Signs In Your Neighborhood?
In a white hot real estate market like Tampa Bay’s, there’s a good reason for the “for sale” phenomenon. Hint: It isn’t covid.
Have you noticed a bunch of sale signs popping up in your neighborhood lately? New ones are noticeably cropping up every day! In a hot market like ours, there's a reason for that.
We all remember what the real estate situation was in ’09. Let us never speak of that again. By 2015, sellers were just starting to reap small profits. Fast forward to today, and South Tampa real estate is red hot once again, minus the bubble.
But here’s the key difference: While average interest rates were over 6% in the first 10 years of the new century, they’re in the 3% neighborhood now. If you bought a $600k house with a 30-year mortgage today, that’s an eye-popping $395k savings!
So, homeowners who didn't get everything on their wishlist 5-10 years ago now have a real incentive to move on up. And homeowners who are ready to downsize are equally incented to cash in on all the equity that’s come their way. The homes they’re selling have appreciated significantly and the interest rates on their new homes will be crazy low.
According to Pava Leyrer, CEO of Northern Mortgage Services, “In markets where homes are flying off the shelves, people are more open to carrying two homes because they’re anxious about not getting the home they really want.” But as you can see from the August 2020 market stats, South Tampa sellers who find their new homes before selling their current ones don’t have to worry about carrying two mortgages for long!
Christy Rosen Clement is a Pricing Strategy Advisor®, Seller Representative Specialist®, Military Relocation Professional® and REALTOR® at Palermo Real Estate Professionals in South Tampa
