Are we in a real estate bubble in terms of price? The answer is NO. The driving force behind increasing prices is the lack of available inventory. It’s a classic supply and demand issue, and this is expected the remain for the foreseeable future.
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If buyers are not making offers on your home, these 2 factors can be the cause of it. If these factors do not add up or do not make sense, buyers will not be inclined to make an offer.
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What’s fueling real estate prices? Among many factors, interest rates (or the cost to borrow money). Going back to the late 80s when 30 year mortgage rates where over 15%, fast forward now to 2017, good credit and good credentials will get you about 4%.
Think about the impact that has on, say, on a $500,000 mortgage. At 15% interest rate you are looking at a monthly mortgage payment of just under $8,000! Compute that $500,000 loan at 4%, you are down to $2,500 bucks a month. Huge impact. HUGE!
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I wanted to share with you the latest (downloadable) Miami Dade Single Family Real Estate Stats and give you an opinion of how these numbers are affecting your home value. Long story short…
What does this mean to you? The value of your home will continue to appreciate. However, if you know someone that’s thinking about selling, picking the right price and marketing strategy is more crucial than ever given the fact that available inventory (competition) is increasing.
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Mario Avalos 