Today is a day both buyers and sellers should take note of. There has been no new listings in Key West or the Lower Keys in the past 24 hours. Buyers, don't drag your feet. Inventory is down and another interest rate hike is due soon. The longer you wait the more you'll pay for the same or a like type house. It is the common economic rule of supply and demand combined with higher interest rates being a higher payment on a loan of the same amount. Sellers, if you have been on the fence, list now. That same rule of supply and demand will make your value go up. Also, buyers who buy using a mortgage usually don't shop according to sale price. They base their purchase on how much money they are going to have to spend every month to own the house. Three years ago, August of 2020, interest rates were 3.10% today they are 8.153%. Let's take a look at the figures on a $1,000,000 sale with a standard 80/20 Conventional Mortgage. The loan amount would be $800,000. The payments on that loan today at 8.153% would be $6,163.00. Exactly 3 years ago that same loan payment at 3.10% would have been $3,416.00. If the interest rates go up one (1) more point making them 9.153, the payment on that same $800,000 loan would be $6,525.00. Now do you see how much mortgage rates affect sale price when a buyer is shopping based on monthly payments? List today before the rates go up again and buyers will only be able to offer you less money on your sale price.
There may be no new listings today but, that's OK, I'm sure I can find your ideal home for you. There are hundreds more to choose from. Call me at 305-731-0501 or email me at garymcadams@realtorgary.com and let me know what your "Perfect House" would be. More than likely I will locate it.
