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Full Report

Recent Buyer Survey

Bright MLS recently surveyed buyers asking if they thought the purchase of a home needed an expert, or if it was a process they could navigate mostly on their own. And the results are not that surprising…

Overwhelmingly, buyers believe that a real estate agent or broker is an essential, trusted advisor in the home buying process. So, despite the recent consumer sentiment circling the industry, it is still projected to be a strong spring market.

Inventory

To determine how strong the spring market will be, we look to inventory, which is growing.

This March, compared to last March, we saw a national inventory growth of 23.5%, and over 45% in Florida. This boost in inventory is a great thing. Newly listed homes was up over 15% from March 2023 marking the 5^th month of increased listing activity after a 17-month decline. More inventory on the market bodes well for home buyers.

Mortgage Rates

Mortgage rates are influenced by the Federal Reserve, the inflation rate, the unemployment rate, and the state of the economy. Predictions are for lower mortgage rates between June and September.

Affordability

The reality is that we are seeing that homes are unaffordable right now. The 3 things that drive affordability are wages, mortgage rates, and home prices. Looking back since 2006, wages are climbing at a faster pace than they have historically.

So, if mortgage rates are predicted to trend downward, as we discussed earlier, that leaves us with home prices.

Overall, home prices are expected to appreciate at a normal, historical rate of 3% - 5%. This all points to the idea that, not only will affordability get better, but buyers will likely enjoy the benefits of increased household wealth.

A potential equity gain of over $60,000 over the next 5 years!

Tallahassee Stats