MAY REAL ESTATE REPORT 2022.
Are Home Prices at a Peak?
April 2022 – Homes sold faster and for higher prices last month in Southwest Florida, while data shows that housing inventory is poised to return to pre-pandemic levels, according to figures just released by the Florida Gulf Coast Multiple Listing Service (local MLS).
INFLATION IS AT ITS HIGHEST LEVEL IN 4 DECADES
Stats According to the Bureau of Labor Statistics, the Consumer Price Index is up 8.5% overall and is based on the following basket of food, energy and other commodities, shelter, medical care, transportation and other services. Experts say we are on the verge of a recession. Portfolio Managers are stockpiling cash for the future… keeping their powder dry, so to speak.
MORTGAGE RATES ARE NEARING 6%
Mortgage rates are up. As of the time of print, the average rate for a 20% down 30-year fixed mortgage with average credit score was 5.88%! Compare that with December 2020 when rates were 2.68%!
HOMES COST OVER 30% MORE THAN THEY DID A YEAR AGO
The median sales price for a single family home, which as of last month was up 31.5% to $355,000.
REDUCED PURCHASING POWER = DECREASING DEMAND
Rising home costs and mortgage rates are a double-whammy for Buyers on a budget. Just a 1% increase in rates decreases a Buyer’s pre-approval amount by 10%… the recent 2% increase in mortgage rates means buyers can afford 20% less home. To top it off, wages have not kept pace with the increased cost of living.
RISING INVENTORY = INCREASING SUPPLY
New listings rose to levels not seen since 2019, with 1,747 residential properties listed coming into the market in April 2022 compared to only 1,010 in April 2021. More inventory means more choices for Buyers… so fewer bidding wars. New construction is picking up steam but eventually will flood the market. And with it will come new home styles, making now-contemporary homes seem dated.
If you have future goals to downsize / simplify your life, change locations or sell off an investment property, this is the time to SELL HIGH. It will be a Buyer’s Market soon.
Contact me for a free, no-pressure, professional market analysis.
STACEY GLENN, REALTOR®
Broker Associate & Team Leader | Graduate of Realtor Institute (GRI)
Bachelor of Business Administration (BBA) in Economics & Mgmt