MONTHLY NEWSLETTER – JUNE, 2018
No, the party’s not over, but rates for home loans rose to the highest level since 2011. With lean supply and increasing asking prices, we expect more consumer push-back in the short-term. The definition of “market value” is becoming more volatile. Although low supply, much inventory remains unsold as price-conscious buyers re-evaluate options in terms of price points.
However, at an average 4.61%, today’s rates could hardly be referred to as “high”. I well remember the 80s when rates finally dropped below 10%. Markets were ecstatic. So this bump in rates is really a psychological stumbling block. It will cause some to get off the fence and buy, and cause others to recoil or lower their price target.
As is typical is a good market, new real estate agents are flooding in. Memberships at the national, state and local Realtor associations are rising meteorically. Everyone from your favorite hair stylist to your favorite bartender; from the cashier at the grocery store to the kid that mows your lawn… It seems like everyone wants to get into real estate to make “easy money”.
Well, the money is not easy and the learning curve can be brutal. More than 70% of these newbies will be gone (as in out of the business) within 18-24 months. As a business model, many real estate companies specialize in hiring neophytes knowing that almost everyone of them knows five friends or family members who may buy or sell real estate within the next 12 months. It would seem to be a short term strategy, but it is one that can actually be repeated infinitum.
At RE/MAX Coastal Properties, agents average 12 years experience. An entirely different model. A difference that we are very proud of.
The Y-T-D recap of our market’s diverse Average Sales Prices:
Single Family Condo
30-A $ 1,125,723 $627,074
Destin/Miramar Beach $ 683,616 $438,495
Ft. Walton Beach $ 264,156 $187,749
Please call us anytime for a market update!
Ed, Terri, Kay, Denis and Tammy